If you were to sell those shares, you’d pay $600 of tax on the gain ($5,000 – $2,000 = $3,000 x 20% = $600). And you would only have $4,400 left to donate to the Foundation.
If instead you transferred ownership of the RBC Royal Bank shares directly to the Sandra Schmirler Foundation, you would not incur the $600 of tax on the capital gain and would receive a donation tax receipt for the full $5,000.
So if you are considering making a donation to our Foundation, check your investments and consider making the donation by transfer of securities – you may be able to save on tax and make a larger charitable contribution. And most importantly, you will be contributing to a worthy cause.
NOTE: These are general figures for the purposes of illustration. They do not constitute legal or financial advice. We recommend you seek appropriate professional advice before deciding on your charitable gifts.