To encourage charitable giving, the government provides you with a tax credit when you make a personal donation to a registered charity. This donation tax credit can be used to reduce your taxes payable.

 

This article discusses a further potential tax benefit if you donate certain securities in-kind.

 

Please note the strategies discussed in this article only pertain to individuals who are donating securities held on account of capital. Holding a security on account of capital means that if you were to sell the security, you would realize a capital gain or loss. If you would realize income or losses from the sale of a security, you’re holding that security on account of income. If you’re uncertain which pertains to your situation, it’s important to seek advice from your qualified tax advisor. Further, if you report gains on the sale of securities on account of income, it’s important to seek advice from your qualified tax advisor as to a donation strategy that makes sense for you.

 

You can read the full article here.