An Alberta Society of Islamic Fellowship supporter donates shares valued at $50,000 (with a $40,000 capital gain):

1. She receives a $50,000 tax receipt. *

2. She receives a $25,000 tax credit. *

3. She avoids paying $7,800 in tax on the capital gain.

* Tax credit depends on donor's income and specific circumstances

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Publicly listed securities include financial instruments such as stocks, bonds and mutual funds. Donating them directly to the Alberta Society of Islamic Fellowship makes a difference and may entitle you to some significant tax benefits.

 

When you transfer securities to the Alberta Society of Islamic Fellowship, you receive a tax receipt for their fair market value. Any capital gain will not be taxed, whereas 50% of the gain is taxable if you sell them and donate the proceeds. The tax credit can offset taxes owing on up to 75% of your taxable income in the year of the gift.

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Any unused portion of the receipt can be carried over for up to five more years. If you donate securities through your will, your estate will get a receipt that can offset taxes on up to 100% of your taxable income in the year of your death. Any remaining part of the receipt can be used to claim a tax refund from the previous year.