Amy is a public relations executive from Nelson, B.C. She has decided to make a one-time charitable donation of $5,000.
She earns approximately $150,000/year from all sources. She has a registered retirement savings plan (RRSP), a tax-free savings account, and a non-registered (taxable) investment account. Since Amy earns less than $173,000/year, alternate minimum tax does not apply.
Amy wishes to donate $5,000. She has already checked with her favourite charity, and her donation will generate a charitable donation receipt.
Her portfolio manager shows Amy that a stock in her non-registered investment account that was purchased for $2,500 in 2018 is now worth $5,000.
The charity she chooses to support has provided her with the information required for her to donate an appreciated security, should she decide that is in her best interest.
Should Amy donate cash from her bank account or the appreciated security?