Donate Stocks

Donating Stocks to The Food Bank of York Region

Donating publicly traded securities (stocks, bonds, mutual funds) directly to The Food Bank of York Region (FBYR) is an exceptionally tax-efficient way to support our mission to end hunger in York Region. This method allows you to maximize your donation impact while receiving significant tax benefits.

Tax Benefits of Your Gift

Capital Gains Exemption: Normally, selling shares triggers a capital gain, which is taxable. However, if you donate eligible publicly traded shares directly to The Food Bank of York REgion, the taxable portion of the capital gain is reduced to zero. This means you do not pay tax on the appreciation of the shares. See www.doanegrantthornton.ca
Donation Tax Credit: You can claim a charitable donation tax credit based on the FMV of the shares at the time of donation. For federal taxes, the credit is 15% on the first $200 and 29% on amounts above $200, with higher rates possible for top-income earners. Provincial tax credits may further increase the total tax savings, often resulting in a combined benefit of 44–54% of the donation value depending on your province. See www.doanegrantthornton.ca
Avoid Selling First: Selling shares before donating converts them to cash, which triggers capital gains tax. Donating the shares directly ensures the charity receives the full value, and you maximize tax benefits. See www.doanegrantthornton.ca

See an example in the table below for the potential tax benefit, assuming a donor is taxed at a top marginal rate of 50%, and a donation receives a combined federal and provincial tax credit of 50%. See www.doanegrantthornton.ca

  
        Description
        Sale of Security and Cash Donation
        Donation of Securities
      
        Value of Shares/Donation (A)
        $5,000
        $5,000
      
        Cost of Base of Shares (B)
        $1,000
        $1,000
      
        Capital Gain ((A-B)=C)
        $4,000
        $4,000
      
        Capital Gain Inclusion Rate (D)
        50%
        0%
      
        Taxable Capital Gain ((C x D)=E)
        $2,000
        $NIL
      
        Tax on Taxable Capital Gain (E x 50%)
        $1,000
        $NIL
      
        Donation Tax Credit (A x 50%)
        $2,500
        $2,500
      
        Net Tax Savings (Tax Less Donation Credit (F))
        $1,500
        $2,500
      
        Net After-tax Cost of Donation (A-F)
        $3,500
        $2,500

Description	Sale of Security and Cash Donation	Donation of Securities
Value of Shares/Donation (A)	$5,000	$5,000
Cost of Base of Shares (B)	$1,000	$1,000
Capital Gain ((A-B)=C)	$4,000	$4,000
Capital Gain Inclusion Rate (D)	50%	0%
Taxable Capital Gain ((C x D)=E)	$2,000	$NIL
Tax on Taxable Capital Gain (E x 50%)	$1,000	$NIL
Donation Tax Credit (A x 50%)	$2,500	$2,500
Net Tax Savings (Tax Less Donation Credit (F))	$1,500	$2,500
Net After-tax Cost of Donation (A-F)	$3,500	$2,500

In the example above, the donor of the securities saves $1,000 in tax if the securities are donated directly to FBYR as opposed to making a cash donation of the same value as the share.

Eligible Shares

Publicly traded shares listed on a designated stock exchange are the most straightforward to donate.

Privately held shares can also be donated, but the process is more complex and may require additional valuation and approval from FBYR.

How to Donate Securities to The Food Bank of York Region

To facilitate your donation of securities, please follow these steps:

Contact FBYR and Request the Form: For the required form and more information on the direct transfer process, please email alex@fbyr.ca.
Instruct Your Financial Advisor: Once you have the form, complete and sign it, and then send it to your investment advisor or financial institution. This form authorizes them to transfer the shares directly to The Food Bank of York Region's brokerage account.
Transfer and Receipting: The transfer process typically takes a few business days. Once the donation is complete, The Food Bank of York Region will issue you an official charitable tax receipt for the fair market value of the shares on the date of the transfer.
The Food Bank of York Region Contact Info:
1. Email for the Form: alex@fbyr.ca
2. Phone: 437-317-3684

It is recommended to consult with a financial advisor to understand the specific tax implications for your situation.