Across Canada—and particularly in Alberta—traditional cash donations are declining due to a perfect storm of rising living costs, stagnant wages, and record-high household debt. Canadians now spend more on essentials like housing and food, leaving little discretionary income for charitable giving. Many are prioritizing financial security through debt repayment, saving, or investing in TFSAs, with even middle-income households increasingly spending beyond their means just to stay afloat (RBC Economics, 2023; BMO TFSA Report, 2023). Alberta, despite having the highest average donation per donor, has seen its donation participation rate fall below the national average (Fraser Institute, 2023). Charities face growing needs but shrinking cash contributions—not due to a lack of generosity, but because fewer Canadians have uncommitted cash on hand (CanadaHelps, 2024; Consolidated Credit, 2023; Equifax, 2024). [more]

One of the most significant shifts has been the growth in gifts of stock and other securities. Since 2006, Canadians have enjoyed a zero capital gains tax on donations of publicly traded securities [^4], making this an extremely tax-efficient way to give. Instead of donating cash, an individual can donate shares (or mutual funds, ETFs, etc.) that have risen in value – yielding a charitable tax receipt for the full market value and no tax on the gain [^5]. This policy change sparked a surge in in-kind stock donations, especially among wealthy donors. Many high-net-worth Canadians now routinely donate shares to fulfill their charitable goals [^6]. Awareness is still growing – a recent poll found only 31% of Canadians know about the tax advantages of gifting securities, and just 7% have tried it so far [^7]. Nonetheless, the trend is upward, with advisors actively encouraging donors to consider donating securities instead of cash to stretch their dollars further [^8].

Canada’s aging population and impending wealth transfer have put a spotlight on using retirement funds and estates for charity. Donating RRSP or RRIF assets is emerging as an impactful strategy. For instance, retirees can withdraw a portion of their RRIF, donate it to charity, and use the donation tax credit to offset the income tax on the withdrawal giving.mcgill.ca. Effectively, some of one’s retirement savings can be converted into a charitable gift at little net tax cost. Similarly, more Canadians are naming charities as beneficiaries of their RRSPs/RRIFs or including charitable bequests in their wills. While only a small minority (around 5–12% in surveys) have arranged a charity bequest so far, awareness campaigns (like CAGP’s Will Power) aim to boost this substantially by 2030. The idea is that even leaving a small percentage of one’s estate or retirement plan to charity can generate billions for causes, given the massive intergenerational wealth transfer underway. These planned gifts via wills and registered plans are poised to grow, supplementing (or replacing) the spontaneous cash donations of the past.

Beyond securities, Canadians are beginning to explore gifts of real estate, private company shares, cryptocurrency, and other non-cash assets. Donating real estate outright to a charity or via a DAF can unlock large sums for philanthropy, though current tax rules still trigger capital gains on most property gifts. (Certain gifts, like ecologically sensitive land, have special treatment, but generally public securities are the only asset with a full capital gains exemption for donations.) There is a growing call to extend tax incentives to real estate and private share donations, which advocates say could significantly boost giving. Even without a full exemption, some donors are using creative means – for example, gifting investment property to a charity and using the donation credit to offset the capital gains tax, or leaving real estate to charities through their estate. Such gifts remain relatively rare today, but high-value asset donations are expected to climb as philanthropists look beyond their wallets to their assets as sources of charity. In short, “cash is not king” when a piece of land or business equity might make a bigger impact; the charitable sector is preparing for more of these complex gifts in the coming years.

Donor-advised funds have quickly become one of the most popular vehicles for modern philanthropy in Canada. A DAF is essentially a charitable investment account: donors contribute cash or assets (like stocks) into their fund, get an immediate tax receipt, and then recommend grants to charities over time at their convenience giving.mcgill.ca. This allows people to “donate now, decide later,” providing flexibility to support various charities when the time is right. Over the past decade, DAF usage has exploded. Canadian donors had approximately 20,500 DAF accounts by 2021, holding $8.5 billion in assets earmarked for charity cagp-acpdp.org. Contributions flowing into DAFs reached $2.2 billion in 2021 – nearly 10% of all charitable donations claimed that year, and almost double the share from just two years earlier cagp-acpdp.org. Major financial institutions and community foundations have fuelled this growth (the first bank-affiliated DAF launched in 2004, and now most big banks and charities offer them) willpower.ca. Donor-advised funds are especially popular among families experiencing liquidity events or doing estate planning, since they simplify administration while allowing donors (and even their heirs) to stay involved in giving over many years peartreecanada.com. The rise of DAFs underscores a shift from ad-hoc donations to a more managed, foundation-like approach – without the complexity of starting a private foundation.