Cash vs. Donating Shares

Donating Cash vs Donating Shares
Figure 2: Compares donating publicly traded shares directly vs selling the shares and donationg the cash proceeds. Be sure to consult your tax advisor and charity before making a gift of property.
FIGURE 2
Marginal Tax Rate: 44%
	Sell shares and donate cash	Donate shares directly
FMV of doantion (a)	$100,000	$100,000
Adjusted cost base	$20,000	$20,000
Capital Gain	$80,000	$80,000
Taxable capital gain	$40,000	$-
Tax on capital gain (b)	$17,600	$-
Donation tax credit (c)	$44,000	$44,000
Tax Savings	$26,400	$44,000
Total cost of donation = (a) + (b) – (c)	$73,600	$56,000
Tax Savings by Donating Shares		$17,600

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