Gifts of Stocks & Securities
Donating publicly traded stock and securities is a tax-smart way to support the University of Windsor. You will receive a tax receipt for the full appreciated value of a donation of publicly traded stock or securities, and as of May 2, 2006, you are not liable for any capital gains tax.
The easiest way to make your gift of stock or securities is to have the shares electronically transferred to the University of Windsor. The receipt value will be for the closing trading price on the day the University receives delivery of the shares. As with any gift, you may designate the use of the value of the securities or leave the gift unrestricted.
Benefits of making gifts of stock and securities:
- Capital gains tax on publicly listed stocks and securities are exempt on gifts made as of May 2, 2006, when you donate your shares to the University rather than selling and donating the proceeds (see example to the right)
- Value of your tax receipt will be locked in at the market closing price on the day the University takes legal receipt of your stock or securities into our brokerage account
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- Claim charitable donations up to 75 per cent of your net income. A five year carry forward on any unused donation amount is permitted
- Designate your gift to a university priority that meets your interest, such as scholarships, capital projects, programs or research
Example:
Jeff decided to support the University of Windsor 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 the University. The chart below assumes a tax rate of 50 per cent.
For more information on gifts of stock and securities to the University of Windsor, please contact:
Dr. Michael Salter
Acting Vice-President, University Advancement
(519) 253-3000 ext. 2097
msalter@uwindsor.ca
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