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Tax

Do I get a bigger tax credit for donating publicly traded shares instead of cash?

TSL Written by the Treadstone Law team· Updated August 2026

Yes, donating publicly traded securities directly to a registered charity, instead of selling them first and donating the cash, generally produces a meaningfully better overall tax result. When you donate the securities themselves rather than the sale proceeds, the capital gain on those securities gets more favourable tax treatment than an ordinary capital gain would — on top of still receiving a donation receipt for the full value of the shares at the time of the gift. Selling first and donating the cash means triggering the regular tax treatment on any gain before the charity ever sees the money.

The size of the advantage depends on your specific holdings — how much the shares have appreciated, and their value at the time of the gift — so it varies from person to person and isn't a fixed number. It also depends on the recipient qualifying to receive the gift in the way needed to access this treatment, so the charity itself matters here too. If you're holding appreciated public shares and considering a significant charitable gift, it's worth discussing the in-kind donation route with your accountant or a tax advisor before selling anything, since once you sell and donate cash, that more favourable treatment on the gain is gone.

Key takeaways

  • Donating securities in kind avoids triggering ordinary capital gains treatment on the appreciation.
  • You still receive a donation receipt for the security's value at the time of the gift.
  • The size of the benefit depends on your specific gain and varies by donor.
  • Selling first and donating cash forfeits this more favourable treatment entirely.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone tax lawyer can help.
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