Give More, Pay Less: The Tax Advantage of Donating Securities

“This year, we are grateful for the increase in charitable donations made through stocks and securities. We are thrilled to receive contributions in this manner. These gifts play a vital role in strengthening our programs and growing our scholarship funds. As a non-profit, these gifts make a real difference to the school.” – Mary Anne Marchildon, Gryphon Annual Appeal 

Both grateful for and curious about the increase in donations of securities to GNS this year, we sat down with investment professional Eddie Gudewill ’06, author of the Goodwill Investing Journal, to learn more about the win-win that can come with donating stocks.

“Donating appreciated stock directly to charity is one of the easiest ways to give more to causes you care about,” says Gudewill. “It’s also one of the most powerful tax-saving strategies available, and one of the most overlooked.”

Gudewill says this method of giving is so underused that even seasoned investors – and sometimes even their advisors – overlook it. He says donating stocks can dramatically boost your charitable impact while lowering your taxes. 

He notes it’s important to point out this applies specifically to the donation of publicly traded securities directly to registered Canadian charities.

“If you sell appreciated investments to make a cash donation, you’ll trigger capital gains tax – so part of what you sell ends up going to CRA instead of the registered non-profit. That’s why donating publicly traded securities directly is usually more efficient: you avoid capital gains tax entirely and the registered Canadian charity receives the full value.”

Gudewill says. “It’s efficient for both the donor and the non-profit. The charity can hold the stock or sell it immediately and use the cash. Either way, no tax is paid.

While not every small registered non-profit is set up to receive securities directly, Gudewill says many are. “Go to the charity’s website. Many have a section called Ways to Donate. Then speak with your advisor. Learn the process once, and you can use it for the next 20 years.” He adds the online resource CanadaHelps is also an informative tool on charitable giving.

For more information about how to give the gift of securities to GNS, please visit our website.

Donations received by December 31, 2025, qualify for a 2025 tax receipt.

Eddie Gudewill is a Canadian investment professional, financial educator, and content creator known for his work in equities, real estate, and personal finance. He shares insights on investing and wealth-building through newsletters, courses and social media. He is also a GNS Alum.

*The information provided in this article is for informational purposes only and does not constitute financial, investment, tax or legal advice.