Gifts of securities

Gifts of Listed Securities

The federal government has made it very attractive to gift appreciated publicly listed securities directly to charitable organizations exempting the donor from capital gains tax yet recognizing the full "Fair Market Value" as tax credits.

This is a significant change from the previous tax treatment of such donations, where 25% (half of the regular capital gains inclusion rate of 50%) of any capital gains triggered were taxed. The following investments are eligible for this special tax treatment.

• Shares, rights and debt obligations (typically bonds or debentures) that are listed on a prescribed stock exchange (tiers 1 and 2 of the Canadian Venture, Montreal, Toronto and Winnipeg stock exchanges and most major foreign stock exchanges)
• Shares of a Canadian public mutual fund corporation and units of a mutual fund trust
• Interests in a segregated fund trust
• A bond, debenture, note or mortgage of the Canadian federal or provincial