The 2006 proposed Federal Budget made gifts of publicly-traded securities more tax-effective than ever before. All donations of marketable securities to registered charities are now totally exempt from capital gains tax.
Eligible donations include stocks, bonds and mutual funds listed on a public securities exchange such as the TSX. The donation must be a transfer of the stock itself, not a cash donation of the proceeds of sale of the stock.
This presents an outstanding opportunity for donors with appreciated stock portfolios to make substantial charitable gifts at reduced cost.