Securities Giving benefits everyone.
Securities and mutual fund donations are a strategic way to give.
A donation of securities or mutual fund shares is the most efficient way to give charitably. With a donation of securities or mutual funds, capital gains tax does not apply, allowing you to give more and avoid paying capital gains taxes.
It’s easy to donate securities and mutual funds.
Let’s say you purchased common shares in ABC Company for a cost of $1,000 and a few years later they now have a current market value of $5,000. You would have a capital gain of $4,000.
The chart below illustrates what happens if you sell the shares and then donate the after-tax proceeds and what happens if you donate the shares directly using our online form. By donating shares directly, you get a larger tax credit and give more to the charity you care about.
1. This assumes a 46% marginal tax rate. For calculating capital gains tax, this rate is applied to 50% of the capital gain.
2. $4,080.00 represents the full value of $5,000.00 minus estimated tax of $920.00.
3. 3% fee applies to donations less than $10,000; 2.5% fee applies to donations between $10,000-$49,999; 2.25% fee applies to donations between $50,000-$99,999; 2% fee applies to donations $100,000+
Explore the Financial Benefits of Charitable Giving
See the difference that charitable donation tax credits make when you donate to your favourite charity and claim your donation receipts. Not only is giving to charity a great way to make a difference to your favourite cause, but when you claim your charitable tax credits you can also take advantage of federal and provincial government tax incentives.
Federal and provincial donation tax credits add up
By donating to your favourite charity, you may receive as much as 49% of the amount you donated back at tax time. That could mean a $494 tax credit on a total of $1000 donated in a single year in some provinces.
Reduce Capital Gains Taxes
In most cases, donating appreciated stocks, mutual funds or stock options means you pay no tax on the capital gains. Or save your charitable tax credits for future tax returns within 5 years of the transaction.
Carry previous donations forward for a larger tax credit
You do not have to claim all of the donations you made in the year they were made. When you donate over $200, you are automatically eligible to carry them forward and claim them on your tax return for any of the next five years. This flexibility means that the unclaimed carry-forward portion may qualify for a larger tax deduction, in the future.
Transfer donation credits to your spouse or common-law partner
The donation tax credit is a non-refundable tax credit which means other tax credits must get claimed first to bring your tax payable to zero. If you cannot claim your donation amount on your tax return, pool your donations with your partners for a larger tax credit on their tax return.
Donors are encouraged to make their gift of securities to Red Deer Food Bank by Monday, December 15, 2025.
Please note that our offices will be closed from Wednesday, December 24, 2025 through Friday, October 26, and again on Thursday, January 1. We resume regular business hours Friday, January 2, 2026. There will be reduced availability December 29 - 31.
Only gifts with shares received by Wednesday, December 31, 2025 will be issued a charitable tax donation for that calendar year. Given the volume of gifts and holiday closure, some donors may receive their charitable tax receipts in January.