Gifts of Stock and Securities
A gift of publicly traded securities is both simple and tax-effective. You receive greater tax benefit through a gift of securities than you would if you sold the securities and donated the cash proceeds to charity (see example below).
Gifts eligible for this preferred tax treatment can include any of the following securities:
- Prescribed bonds
- Units of mutual funds
- Shares, warrants, bills and futures that are listed on the stock exchanges prescribed by Canada Revenue Agency
Benefits of Gifting Securities
- Satisfaction of making a meaningful gift to benefit students and faculty at Queen’s.
- Eliminates the capital gains tax owing on the shares.
- Official tax receipt issued for the fair market value of the gift, based on the closing price of the shares on the day the gift is received.
- Choose how your bequest is used, e.g., student aid, a particular academic program, or the area of greatest need.
Request a Personalized Illustration
Please contact one of our Gift Planning Officers for a personalized illustration of how you can make one of the most popular gifts to Queen’s University.
Transferring Securities Electronically
download Gifting Shares document (16KB)
An Illustration- Gifting Publicly Traded Securities
|
|
Sell Shares & Donate Cash | Donate Shares Directly to Queen’s |
| Fair Market Value of Asset | $40,000 | $40,000 |
| Cost Basis | $20,000 | $20,000 |
| Capital Gain | $20,000 | $20,000 |
| Taxable Capital Gain | $10,000 | $0 |
|
Charitable Tax Credit
|
$18,564 | $18,564 |
| Tax due on Capital Gain | $4,641 | $0 |
| After Tax Cost of Gift | $26,077 | $21,436 |
| Net Benefit to the Donor |
|
$4,641 |
The after tax cost to you is about 54 cents on the dollar. Example assumes a 46.41% tax rate.
Please
contact uswith your questions or for further information.
We strongly encourage you to consult with your lawyer, accountant, or other financial advisor before finalizing your planned gift.
Thank for your interest in our Gift Planning program.