We have the ability to accept stock donations, so why not fully leverage this powerful and financially profitable tool. It works for you and it works for us.
Here’s an example: Suppose you have shares worth $10,000 with an adjusted cost base (ACB) of $5,000. If you sell the shares and donate the cash to charity, you’ll face tax of $1,125 on the sale (assuming a marginal tax rate of 45 per cent). You’ll then receive a $4,500 donation tax credit. The net tax savings will be $3,375 ($4,500 less $1,125). If you donate the shares directly to charity instead, the $1,125 tax bill is eliminated, saving you that much more money!
