Donating Securities

In 2006, the Federal Government changed the income tax law to allow donation of publicly traded securities to charities such as the OK Clean Water Project without having to pay the capital gains tax of the securities. This new rule can benefit better both the charity and the donor. Below is an example of the increased benefits.

	Sell securities and donate after-tax cash	Donate securities
Selling Price	$10,000	$10,000
Purchase Price (Adjusted Cost Base)	$2,000	$2,000
Capital Gain	$8,000	$8,000
Taxable Capital Gain (50% of Capital Gain)	$4,000	$0
Marginal Tax Rate	45%	45%
Capital Gain Tax Payable	$1,800	$0
Net Amount Donated to Charity (Selling Price minus Capital Gains Tax)	$8,200	$10,000
Federal Tax Credit	$2,350	$2,872
Provincial Tax Credit	$905	$1,106
Total Tax Credit	$3,255	$3,978
Additional Tax Credit		$723

In this example, the donation of securities gives the charity more money ($1,800) and the donor more tax credit ($723).

The OK Clean Water Project now has the facility to accept donations of securities.

If you wish to make a donation of securities, please contact info@okcleanwaterproject.org.