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.