Donating publicly traded stocks and securities is a tax-smart way to support USMC. You will receive a charitable tax receipt for the fair market value of the donated security and you will not pay tax on any capital gain. You can choose to support the University’s greatest needs, or you may designate your gift to a University priority in line with your interests. Eligible gifts of stocks and securities include:
shares debt obligations or rights listed on a designated stock exchange a share of the capital stock of a mutual fund corporation a unit of a mutual fund trust an interest in a related segregated fund trust a prescribed debt obligation Gifts of stocks and securities have a number of benefits:
The capital gain inclusion rate is zero when eligible stock or securities are donated directly to USMC. If you sell the shares and donate the proceeds, you will be required to pay capital gains tax. (See example below.) The value of your charitable tax receipt will be based on the market closing price on the day that USMC receives your stock or securities in its brokerage account. Donors making a gift of shares acquired through an employee stock option plan of a publicly traded company benefit from the favourable treatment of a zero capital gain inclusion rate. To be eligible for this benefit, you must donate these shares in the same calendar year and within 30 days of their acquisition. Example: Jeff decided to support U of T with a gift of $100,000. When reviewing whether he should sell his shares in a publicly-listed corporation and then donate the cash proceeds or donate the shares directly, Jeff learned that he would have a greater net tax benefit by donating the shares directly to U of T. The chart below assumes a tax rate of 50 per cent. SELL SHARES & DONATE CASHDONATE SHARES DIRECTLYFair Market Value$100,000$100,000Cost Basis$20,000$20,000Capital Gain$80,000$80,000Taxable Gain$40,000$0Tax Credit (at 50%)$50,000$50,000Tax on Gain (at 50%)$20,000$0 To make a gift of stock or securities, please make use of our Gift of Securities form, which is available as a standard PDF or fillable PDF. For more information, please contact 416-926-1300 or email smc.annualfund@utoronto.ca To make a donation by telephone, please call (416) 926-1300.