Planned and Legacy Giving
Donating stocks and other securities is one of the most tax-efficient ways to give.
Donors can support AKFC by making a gift of securities which have increased in value as compared to when the donor purchased the securities. This form of donation is tax-efficient, as donors will receive a charitable tax receipt for the value of the securities.
Certain securities that have appreciated in value qualify for this type of legacy giving, including but not limited to:
- Shares, debt obligations, or rights listed on a publicly traded stock exchange
- Mutual funds
- Government bonds (Provincial and Federal)
Construction of a flood mitigation wall along the riverbank in Hunza, Pakistan, to protect against frequent flooding. Credit: Madison Stadler-Rose / AKFC
Benefits of Gifting Appreciated Securities to AKFC
- Tax Savings: When an individual sells appreciated securities, they typically owe taxes on the capital gain. However, if the securities are donated to a registered Canadian charity, no taxes are owed by the capital gains.
- Charitable Tax Receipt: Donors receive a charitable tax receipt for the fair market value of the donation, based on the market closing price of the day the securities are transferred to AKFC. The receipt can be used to reduce income taxes payable. Unused charitable donation tax credits can generally be carried forward for up to five years. We strongly encourage the donors to contact their financial or tax advisor to confirm their eligibility to carry forward such donation tax credits.
Special Consideration – Alternative Minimum Tax
The 2023 federal budget included proposed legislative changes to the Alternative Minimum Tax (AMT) that impacted individuals and trusts. These changes took effect in 2024 and could alter the tax credits related to charitable donations such as gifts of appreciated securities, stock options, and flow-through shares.
Please visit the Government of Canada’s website for more information.
Other considerations
Any decision you make with respect to giving a gift to AKFC in your will as part of your planned and legacy giving should be made in consultation with your financial advisor, tax advisor, and legal advisor.
Donors should also take the necessary steps to ensure that they have made adequate provision for their family, heirs, and other individuals requiring support after their demise.
We would welcome the opportunity to work with you, your family and your advisors if you wish to support AKFC through a gift in your will. We encourage you to engage in a discussion with us prior to finalizing your gift, to ensure that it is a gift that AKFC can accept as a Canadian charitable organization. From time to time, AKFC may have to decline gifts that are made without prior consultation.
