A simple way for your donation dollars to go even further

If you hold investments in a taxable investment account that have appreciated in value, consider donating the investments themselves to JAZZ.FM91. By donating investments that have appreciated in value you will be exempt from the capital gains tax on the donated investment. You’ll also receive a tax receipt for the fair market value of your donation.

The combined tax savings when donating in this manner can be notable. Here is an example that illustrates the point when donating shares.

Sell shares and donate the cash Donate the shares directly
Fair market value of shares $50,000 $50,000
Adjusted cost base of investment $10,000 $10,000
Capital gain $40,000 $40,000
Taxable capital gain $20,000 $0
Tax on capital gain @ 46% $9,200 $0
Tax savings from donation tax credit
(@ 46% marginal rate)
$23,000 $23,000
Total cost of donation $36,200 $27,000

The donor who made a donation of securities came out ahead by $9,200. The difference is a result of the eliminated capital gains tax on the donated securities.

Types of qualifying investments:

  • Shares, bonds or rights listed on a designated stock exchange
  • Mutual funds
  • Exchange-traded funds
  • Interest in related segregated funds
  • Government bonds

Questions? Please call our membership office at 1-800-811-2400 or send an email to Suzanne Bélanger at sbelanger@jazz.fm.