When Can I Avoid Capital Gains on Transfers of Securities to Charity?

You can use a 0% capital gains inclusion rate, rather than the normal 50% rate when transfer qualified securities to your favorite charity, including a private foundation.

This can include the following:

• a share, debt obligation or right such as a stock option, listed on a designated stock exchange
• unlisted securities, partnership interests or shares of a private corporation that are donated within 30 days of an exchange for publicly traded securities
• a share of the capital stock of a mutual fund corporation or mutual fund trust
• an interest in a related segregated fund trust
• a prescribed debt obligation
• ecologically sensitive land (including a covenant, an easement, or in the case of land in Quebec, a real servitude) donated to a qualified donee other than a private foundation

What this means is that you can transfer these assets, upon which you have an accrued taxable gain, directly to your favorite charity, avoid paying the tax on the gain and then also receive a charitable donation receipt. If you decide to do so, complete Form T1170, Capital Gains on Gifts of Certain Capital Property.