Gifts of Stock and Annuities

You can make an investment in the gift of sight and reduce your taxes by donating to Operation Eyesight.

What are the advantages of giving a gift of stock?

  • It removes taxation of capital gains, making it the most tax-effective way to donate*
  • The tax efficiencies of gifts of publicly traded securities may allow you to give more than you might have thought*
  • You will receive a tax receipt for the market value of your donation

Donate your stock in three easy steps

  1. If you have questions prior to making your donation, please contact us at 587-327-5681, ext.105 or email securities[at]operationeyesight.com

  2. Download the Gift of Stock Transfer Form, ensure you have filled in all fields, then submit the signed form to securities[at]operationeyesight.com

    Note: please do not make a transfer without submitting this completed form to Operation Eyesight.

  3. Once we have received and approved the form, you will be given Operation Eyesight’s account information. Next, you must share this information with your broker to initiate the transfer of your securities to Operation Eyesight.

One of our team members will contact you once your gift has transferred successfully and will issue you a charitable tax receipt. The date of the donation is considered to be the date that the shares were deposited into Operation Eyesight’s account. The value of the donation for tax purposes will be the market value of the shares when deposited into Operation Eyesight’s account.  

*This information is general and does not constitute legal of financial advice. Operation Eyesight encourages you to seek professional, legal and/or financial advice before taking a course of action.

Some restrictions apply. Operation Eyesight reserves the right to reject a gift of securities. View our gift acceptance policy here.

Tax benefits of donating a publicly listed stock to Operation Eyesight

When you sell a stock or mutual fund that has increased in value since you purchased it, you must pay tax on the capital gain. However, if you donate the securities to charity, you pay no capital gains tax. This makes appreciated stock one of the most cost-effective ways to donate to Operation Eyesight. 

By donating securities directly to Operation Eyesight (as opposed to selling them and then donating the proceeds), you’ll: 

  • eliminate capital gains taxes; 
  • maximize the return on your investment; and 
  • increase your tax credits to be used against other taxable income.

When you donate a publicly traded stock that you have accrued capital gains on directly to Operation Eyesight, you and Operation Eyesight benefit from the elimination of the capital gains tax, and you benefit from the donation tax credit. The combined tax savings for you can be notable.

The following example illustrates this point by comparing two alternatives for donating securities with a fair market value of $50,000 and an increase in the assets book value (adjusted cost base) of $10,000. The donor’s federal and provincial marginal tax rate is 46 per cent; therefore, the donor receives a combined federal and provincial donation tax credit at a rate of 46 per cent.

Sells shares and then donates cash

Donates shares directly

FMV of donation (a)

$50,000

$50,000

Adjusted cost base

$10,000

$10,000

Capital gain

$40,000

$40,000

Taxable capital gain

$20,000

$0

Tax on capital gain @ 46% (b)

$9,200

$0

Donation amount to Operation Eyesight after tax (a) - (b)

$41,800

$50,000

Tax savings from donation tax credit (c)

$23,000

$23,000

Total cost of donation to donor = (a) + (b) - (c)

$36,200

$27,000

In the above example, Operation Eyesight receives $8,200 more if you donate your shares directly.  

The cost to your finances if you sell the shares and then donate the cash to Operation Eyesight is $9,200 more than if you donate your shares directly to Operation Eyesight. The difference is a result of the eliminated capital gains tax on the donated securities.

Gift of annuity

How can you save on your taxes, gain a dependable payment stream and make a significant gift to Operation Eyesight? 

Consider a charitable gift annuity. It combines a charitable gift with a life insurance contract that provides regular payments to the donor in exchange for a lump sum payment. 

If you’re interested in donating stock or securities or have any questions, please contact us