Donate and invest non-cash assets
Giving Season
It's the busiest time of year for making donations and sending gifts to charities. View our list of important dates to make sure that you receive a 2024 tax receipt.
Questions? Email us at hello@charitableimpact.com or call us at 1-877-531-0580.
When you use a donor-advised fund to donate cash or non-cash assets, you can take time to decide what to do with the donation. This is especially important for large donations because you may not want to give the entire donation away at once.
With a donor-advised fund, you have the chance to research which causes you want to support and plan your charitable gifts over time. It also ensures that you always have money set aside for charitable giving. The space to make meaningful giving decisions helps you become a more confident donor, and we’re here to help.
Charitable Impact is experienced with processing a wide range of assets for donation. We accept:
- cash
- publicly traded securities
- private company shares
- cryptocurrency
- life insurance
- real estate
- art
Consider whether you own any non-cash assets that you can donate directly instead of liquidating them to donate cash. Regardless of what type of non-cash asset you choose, you will receive an immediate tax receipt for its fair market value at the time of donation. You have the flexibility and creativity to give in a way that works best for you.
Publicly traded securities are the most common type of non-cash asset we receive. Many people own them, they are simple to donate, and donors benefit from increased tax savings.
Do you own publicly traded securities that you would like to donate? Learn more about the options that are available for donating securities.
The benefit of donating publicly traded securities
Donating appreciated publicly traded securities saves you more money on taxes compared to donating cash and other types of assets. Let’s take a closer look at the benefit of donating securities instead of cash by breaking down the example below.
Receive a tax receipt and a tax credit
Charitable Impact provides an immediate tax receipt for the fair market value of the securities at the time of donation. You’ll get a tax credit for your charitable donation, which reduces the amount of tax you owe.
| Sell securities and donate cash | Donate securities in-kind | ||
| Value of securities at time of donation | $10,000 | $10,000 | The charity receives a $10,000 donation in both cases. |
| Tax credit | $4,500 | $4,500 | When you make a charitable donation, you receive a tax credit that can be used in the same year or any time within the following 5 years. The tax credit is the amount your taxes will be reduced by. The tax credit is determined by the value of securities at time of donation multiplied by the tax credit rate. In this case, an assumed blended rate of 45% (including both provincial and federal tax credit rates) is used. |
Receive a capital gains tax exemption
When you sell appreciated publicly traded securities, a capital gains tax is charged based on the amount of profit gained in the sale of those securities. However, when you donate appreciated publicly securities in-kind, you’re exempt from the capital gains tax—so it costs you less to donate.
| Sell securities and donate cash | Donate securities in-kind | ||
| Value of securities at time of donation | $10,000 | $10,000 | |
| Original cost of securities | $1,000 | $1,000 | This is the original cost of the publicly traded securities at the time you acquired them. |
| Capital gain on securities | $9,000 | $9,000 | This is how much the securities have gained in value since the original $1,000 investment. |
| Taxable capital gain | $4,500 | $0 | When you sell securities, half of the capital gain is taxable because the capital gains tax rate is 50%. When you donate securities in-kind, the capital gains tax exemption reduces the cost of your donation. |
Benefit from increased tax savings
By donating publicly-traded securities in-kind instead of selling them first, you benefit from increased tax savings. This means you can give, invest, and spend more with your tax savings.
| Sell securities and donate cash | Donate securities in-kind | ||
| Tax credit | $4,500 | $4,500 | Referenced above based on a $10,000 donation and an assumed blended tax credit rate of 45%. |
| Tax owed on capital gain | $2,025 | $0 | Tax owed on the capital gain is determined by the taxable capital gain of $4,500 multiplied by the tax rate. In this case, an assumed blended rate of 45% (including both provincial and federal tax rates) is used. When you donate securities in kind, a capital gains exemption is triggered so no taxes are owed. |
| Net tax savings | $2,475 | $4,500 | This total number reflects the charitable tax credit minus tax owed on capital gains. |
Choose what to do with your donation
Once assets are donated, they become charitable. You can decide whether to invest your donation, liquidate your donation for immediate giving, or do both.
Charitable assets can be invested and managed using our Charitable Investment Account. Invested charitable assets have the potential to grow, and any growth is tax free. We charge a quarterly fee on the Charitable Investment Account balance. Your existing investment advisor can continue to manage the donated assets according to our Investment Policy Guidelines.
When you’re ready to use the donated assets for giving, you can raise cash by liquidating the necessary amount of charitable assets from the Charitable Investment Account.
The proceeds are transferred to your Impact Account—a day-to-day giving account—where you can give in a variety of ways.
Give from your Impact Account
When you’re ready to give, there are many ways to make an impact. Learn how to give to charities and Giving Groups from your Impact Account, or send money to friends and family to inspire them to give.