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Securities, Bonds and Mutual Funds

Making a gift of stocks, bonds, mutual funds or flow through shares to the Canadian Diabetes Association provides a gift to support diabetes research, education, services and advocacy. Canadians can donate their publicly traded securities or mutual funds without incurring the tax. Capital gains on donated shares are not taxed. This may provide a greater benefit to you than donating cash.

Benefits:

  • Donating stocks, bonds, mutual funds, flow through shares or other securities can be a tax effective way for you to help the more than 9 million Canadians living with diabetes or prediabetes.
  • By donating your publicly traded securities directly to CDA, you will eliminate tax on the capital gain that would be payable if you otherwise sold the security.
  • You will receive a charitable tax receipt for the fair market value of the securities which will reduce taxes on other sources of income.
  • You will help to lead the fight against diabetes by helping people with diabetes live healthy lives while we work to find a cure.

Illustration:

 
Selling Shares on the Market & Donating Cash
Donating Shares
Fair market value of shares $100,000 $100,000
Cost of shares $20,000 $20,000
Capital gains realized $80,000 $80,000
Taxable capital gain $40,000 (50%) $0
Taxes payable (assume 46%) $18,400 $0
Tax credit* (assume Ontario resident) $46,000 $46,000
Net tax reduction $27,000 $46,000

This example is only for illustration purposes. The tax impact will depend on individual circumstances.

Letter Of Instruction - Transfer Of Securities

For more information, please contact: Lori Sussman, Director, Major & Legacy Gifts at 1-800-BANTING (226-8464) x 7121 or .

The Banting Circle is a very special group of our most loyal and dedicated donors. Donors who are leading the fight today and helping to create a world without diabetes in the future.

* Please Note: The information provided is general in nature and not intended to be a substitute for professional legal and/or financial planning advice. The Canadian Diabetes Association encourages all donors who are planning a significant gift to consult with their family and seek independent legal and/or financial planning advice.