Canadians have a wonderful opportunity to gift appreciated securities while completely eliminating the associated capital gains taxes on the sale of these assets.  Normally, 50% of the capital gain must be treated as taxable income. However, if publicly traded shares are donated to a public foundation such as CNCF, then none of the capital gain will be treated as taxable income.

When non-cash gifts are given to a public foundation such as CNCF, Canada Revenue Agency (CRA) deems that the donor has disposed of the property at the time of the donation.  The donor may have a capital gain on the property if its value at the time of donation exceeds its value at the time the donor acquired it, but when transferred ‘in kind’ to CNCF, the taxes on such capital gains are completely wiped out.  

How it Works

Complete the Direct Transfer Form with your financial advisor for their action or send it to your account holder. Provide CNCF with a copy.
Complete the Letter of Direction for Direct Transfers to indicate to CNCF how you wish to have the proceeds of this sale distributed. Provide it directly to CNCF.
CNCF will inform you once our broker has received the securities and a donation receipt will be issued representing the value of the asset on the date of transfer.
CNCF will prepare cheques and make grants to your chosen charities, including your personal contact information if that is your choice. Gifts can also be made anonymously. Copies of cheques and all correspondence will be sent to you.

Donation Options Summary

For a concise, downloadable summary chart of the various giving options and their specific characteristics,  click here.

Contact Us if you would like more information.