Gifts of Securities
A tax-smart way to support USC Canada
There have been important changes to the taxation of charitable gifts of securities. It is now even more tax-advantageous for you to make a gift of stock rather than cash.
When you transfer publicly traded stocks or securities – including Bell Canada (BCE) shares – directly to USC Canada you will receive a tax receipt for the fully appreciated value of the donation*, and since May 2, 2006, you no longer pay any capital gains tax.
The simplest way to make your gift of securities is to have them electronically transferred from your brokerage account to USC Canada’s brokerage account.
An Example of the Tax Savings
Susie decided to support USC Canada with a gift of $10,000. When reviewing whether she should sell her shares in a publicly listed corporation and then donate the cash proceeds or donate the shares directly, Susie learned that she would have a greater net tax benefit by donating the shares directly to USC Canada. The chart below assumes a tax rate of 50 per cent.
| Sell Shares & Donate Cash |
Donate Shares Directly | |
| Fair market value | $10,000 | $10,000 |
| Cost basis | $2,000 | $2,000 |
| Capital gain | $8,000 | $8,000 |
| Taxable gain | $4,000 | $0 |
| Tax credit (at 50 %) | $5,000 | $5,000 |
| Tax on gain (at 50%) | $2,000 | $0 |
| Tax savings | $3,000 | $5,000 |
If you have further questions about the simple and convenient process of making a securities transfer to USC Canada, please contact Teresa Garavito by phone (1-800-565-6872 x233), or by email.
*A charitable receipt will be issued for the value of the shares on the day that they are received in USC Canada’s BMO Nesbitt Burns account. This value is determined by the closing bid price for the shares on the day they are received
The information provided is general in nature and is not intended to be a substitute for professional legal or financial advice. USC Canada encourages all donors who are planning a significant gift to seek independent legal and/or financial advice.
