Donors who donate certain publicly traded securities "in kind" to registered public charities, like London Health Sciences Foundation are exempt from the payment of capital gains tax on any profit created by the fair market value of the donation.

Qualifying securities include stocks, bonds, trust units, exchange-traded funds, segregated funds and mutual fund units to name a few, as well as shares acquired on exercise of employee stock options, although the process for tax reporting id different on the latter.

Shares donated "in kind" are exempt from tax on any capital gains realized by the transfer of the shares. Due to the cost of brokerage fees, donations of securities should ideally exceed a fair market value of $1,000.

In order to qualify, three criteria must be met:

1. The donation must be made "in kind" (or in their current form, unsold)
2. The charity must be a Canadian publicly registered charity or private Foundation.
3. The donated assets must be listed publicly traded securities (donations of private company shares do not qualify).

We make it easy! Contact us:

Lisa Mazurek, Planned Giving Associate
lisa.mazurek@lhsc.on.ca