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.