November 13, 2025
Ahead of National Philanthropy Day on November 15, many people start thinking about giving back. In fact, 42% of total giving occurs in November and December.1 While all donations are beneficial, certain giving strategies can both maximize
support for charities and minimize your tax burden. High-net-worth individuals donating large sums may particularly benefit from these giving strategies.
The gift of appreciated securities
Giving appreciated securities is typically more advantageous than making cash donations.2 Not only do you receive a tax credit for your donation, but you also remove the embedded capital gains tax on the donated security. (And if you
wish, you can even immediately repurchase the security). Given the significant gains in financial markets recently, this strategy may be particularly useful in 2025.
The advantage of DAFs
Donor Advised Funds (DAFs) are beneficial if you plan to give over time and wish to grow the assets earmarked for charity. By contributing future donations as an upfront lump sum, you may receive a sizeable, immediate tax credit while retaining full flexibility
over the timing and allocation of the funds.3 Compared to regular taxable accounts, the tax-free growth within a DAF can significantly enhance long-term wealth accumulation and charitable giving potential.
Exchanging RRIF payments for tax credits
Additionally, if you have a Registered Retirement Income Fund (RRIF) and do not require annual distributions, you may consider donating your mandatory RRIF payments to charity in exchange for tax credits. RRIF withdrawals are included in taxable income
and are taxed at marginal rates. Depending on your province and your unique tax situation, donation receipts from RRIF distributions to charity can offset—and possibly even exceed—the taxes owing on your registered account withdrawals.4 Ensure
the organization you are supporting has a Canada Revenue Agency (CRA) charitable registration number, as this is required in order to receive a valid tax receipt for your donation.
Recent giving trends
According to CanadaHelps, the donor participation rate (i.e. the percentage of households who claim charitable donations on tax returns) has steadily declined. In 2023, 16.8% of Canadians claimed charitable donations
on their tax return. Compared to 2005, this represents a 33% decline in household participation.5
Although fewer people are donating, the average gift size—typically donated by high-net-worth individuals—has increased. From 2018 to 2023, total charitable contributions increased 28%. Of that total, approximately half (49%) came from the
top 5% of taxpayers (namely, individuals with personal income above $150,000).6
Conclusion
Tax-efficient donation strategies are a win-win. Not only do they support the causes that matter most to you, but they can also reduce your tax bill. By leveraging options such as gifting appreciated securities, utilizing DAFs, and making donations from
your RRIF payments, you can maximize the impact of your charitable contributions while minimizing your taxable income. As the charitable giving landscape evolves and the need increases, these strategies can empower you to make a meaningful difference
and alleviate your tax burden.