Gifts of Publicly Traded Securities by a Corporation
Donating publicly traded securities can also provide significant tax advantages for corporations.
When a corporation transfers eligible publicly traded securities directly to Concordia Foundation, the capital gain on those securities is exempt from tax. In addition to receiving a charitable donation receipt, the non-taxable capital gain is added to the corporation’s Capital Dividend Account (CDA).
The CDA is an important tax-planning tool that allows Canadian-controlled private corporations to distribute tax-free capital dividends to shareholders, subject to the applicable tax rules.
Tax Advantages for Corporations
Selling the Securities
Donating the Securities Directly
A taxable capital gain may arise on the sale.
The capital gain is tax-free on eligible publicly traded securities donated directly to a registered charity.
No addition to the Capital Dividend Account is related to the taxable gain.
100% of the capital gain is added to the Capital Dividend Account (CDA).
Donate the after-tax proceeds.
Receive a charitable donation receipt for the fair market value of the securities while preserving additional tax advantages.
Selling the Securities
A taxable capital gain may arise on the sale.
No addition to the Capital Dividend Account is related to the taxable gain.
Donate the after-tax proceeds.
Donating the Securities Directly
The capital gain is tax-free on eligible publicly traded securities donated directly to a registered charity.
100% of the capital gain is added to the Capital Dividend Account (CDA).
Receive a charitable donation receipt for the fair market value of the securities while preserving additional tax advantages.
A Smart Way to Give
A gift of publicly traded securities allows you to maximize both your charitable impact and your tax efficiency. Whether you are giving personally or through your corporation, donating securities directly can be one of the most effective ways to support Concordia Foundation while achieving your philanthropic and financial goals.
Tax rules are subject to change, and each donor’s circumstances are unique. Concordia Foundation encourages donors to consult their financial advisor, accountant, or legal professional to determine how a gift of securities can best support their charitable and financial objectives.
