Diocese of Saskatoon

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Cash vs. Donating Shares

Donating Cash vs Donating Shares
Figure 2: Compares donating publicly traded shares directly vs selling the shares and donationg the cash proceeds.  Be sure to consult your tax advisor and charity before making a gift of property.
Marginal Tax Rate: 44%
 Sell shares and donate cash Donate shares directly
FMV of doantion (a)$100,000$100,000
Adjusted cost base$20,000$20,000
Capital Gain$80,000$80,000
Taxable capital gain$40,000$-
Tax on capital gain (b)$17,600$-
Donation tax credit (c)$44,000$44,000
Tax Savings$26,400$44,000
Total cost of donation = (a) + (b) - (c)$73,600$56,000
Tax Savings by Donating Shares$17,600