Your gift of a publicly-traded securities is a simple, cost-effective and most tax-efficient way to make a charitable gift to Capilano University.
How to make your securities gift
Making a gift of securities to CapU is a simple process, with the steps outlined below.
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Consult your broker
Consult your broker to review your portfolio and decide on the most strategic and tax-efficient highly appreciated shares to donate to CapU.
Any of the following types of securities gifts that are listed on the stock exchanges prescribed by Canada Revenue Agency (CRA) will be accepted as a donation to CapU:
- Shares
- Prescribed Bonds
- Units of Mutual Funds
- Warrants and Futures
- Exchange Traded Funds (ETF's)
Capital Gains income on securities that have been donated to charity are non-taxable and result in a CRA tax credit.
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Transfer the shares electronically
Instruct your broker to transfer the shares electronically to CapU's broker using one of the following forms:
- Transfer securities to Capilano University Foundation broker (for security donations) (pdf)
- Transfer mutual funds (for mutual fund donations) (pdf)
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Forward a copy
Forward a copy of the completed form to the Capilano University Foundation at fdn@capilanou.ca.
The shares will be valued on the closing price of the security on the day it is received by the University. If there is no selling price on that day, the closing price value on the last preceding day will determine the value of the stock for receipting purposes.
CapU will send out a tax receipt to you directly once the shares have been received and the value is determined.
The entire amount of the donation results in a tax credit that may be used to offset other taxable income.
CapU will sell the stocks immediately (in most cases). Thinly traded shares and flow through shares will be held only as long as it takes to sell them.
| Giving Cash | Illustration Cash VS Stock | Giving Stock |
|---|---|---|
| $22,000 | Amount donated | $22,000 |
| $10,000 | Cost of stock | $10,000 |
| $6,000 | Taxable portion of capital gain 50% of $12,000 | $6,000 |
| $22,000 | Charitable tax receipt | $22,000 |
| $9,614 | Tax credit - tax at 43.7% | $9,614 |
| $0 | Tax savings on capital gains ($6,000 x 32.5%) | $1,950 |
| 56.3% - $12,386 | Net cost of donation | $10,436 - 47.4% |
Assumptions
- The donor's marginal tax rate is in the mid-range at 32.5% (for the purposes of calculating the tax on the capital gain);
- The donor has made gifts to other charities worth more than $200; and
- The donor has sufficient income to be able to deduct the entire gift in the current or following five years.
If you wish to discuss your securities gift, please reach out to us at fdn@capilanou.ca and our Director, Philanthropy & Alumni Relations will be in contact with you.