An example of the greater net tax benefit by donating $10,000 in shares directly to Nipissing University. The chart below assumes a tax rate of 50 percent:

Item Sell Shares and Donate the Gross Proceeds to Nipissing University Donate Shares Directly to Nipissing University
Market Value of Security $10,000 $10,000
Cost Base $5,000 $5,000
Capital Gain $5,000 $5,000
Taxable Capitol Gain (50%) $2,500
Tax Due on Gain at 46% $1,150
Tax Receipt for Gift $10,000 $10,000
Value of Tax Receipt at 46% $4,600 $4,600
Net Tax Savings $3,450 $4,600

The example above uses the Ontario Federal and Provincial combined tax rate.

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