If you’re one of those commendable people who plans on leaving the bulk of your estate to charity when you pass on, we have good news. You can reduce your tax bill substantially—and leave more to your charities of choice—by donating stock rather than cash while you’re still alive. That’s because when you donate stock, you’ll still get the same tax credit you’d get if you donated cash, but you don’t have to pay any capital gains. So if you’re from Manitoba and bought $10,000 of Cenovus shares years ago that are worth $20,000 today and you donate them to charity, you’d get the same $9,200 credit you’d get if you donated cash, and you’d save almost $2,000 in captial gains tax (depending on your tax bracket).
Tax savings: Limited only by your own altruism.