Eliminate capital gains. Securities which have increased in value since they were purchased produce capital gains. At some point you, or your estate, will pay tax on these gains. Current Canadian legislation has eliminated capital gains tax on gifts of publicly traded securities to registered charities. This provision offers donors an opportunity to realize significant tax savings when making a gift of securities to Bishop's.
As an example:
A donor wishes to make a $10,000 gift to Bishop's University and must decide whether to make the gift via cash or securities.
| Opt. 1. Sell securities / donate cash | Opt. 2. Donate securities |
|---|---|---|
Market value: | $10,000 | $10,000 |
Original cost: | $2,000 | $2,000 |
Capital Gains: | $8,000 | $8,000 |
Taxable amount of capital gains: | $4,000 (50%) | $0 |
Capital gain tax liability: | $1,840 (46%) | $0 |
Tax credit for donation: | $4,500 | $4,500 |
Net tax savings: | $2,660 | $4,500 |
The Bishop's University Foundation will issue a tax receipt for the full market value as of the day we receive the securities. Your gift qualifies for a charitable donation tax credit and you eliminate capital gains tax.
To make a gift of stocks or mutual funds please contact Dave McBride (819-822-9600 ext. 2762 or by email: Dave McBride) to advise him of your intentions. Dave will provide you with instructions to facilitate an easy transfer of the securities.
Gifts of appreciated securities are an exceptional way to support Bishop's University while realizing significant tax savings. Thank you for your support!
Gifts are eligible for tax credit in Canada and the United States. Charitable Business #: 11881 0787 RR0001
Testimonials
Your support of Bishop's can have an immediate and lasting impact on students.
"With the scholarship I have been free to continue unhindered the expansion of my knowledge and understanding of English literature. ...I am enjoying the small size of the classes here at Bishop's, for they allow for a more communal atmosphere, both with the teachers and with other students, which makes in-class discussions more possible and more comfortable."
- James
