Support the future of learning with a Gift of Stock
Donating to King's with a gift of stock is a convenient and advantageous way to support the university.
Tax savings - The preferential treatment of directly donated stock means you will receive substantially greater benefits compared to the cash proceeds from their sale. Gift of stock are not subject to capital gains taxes
Convenience - King's can accept gifts of stock by electronic transfer or certificate endorsement.
Tax Receipt - You will receive a tax receipt for the fair market value of your stock. Donors benefit from clear documentation for Canada Revenue Agency.
The 2006 Federal budget enhanced the incentives for Canadians to donate publicly traded securities (stock or mutual funds) directly to charities by eliminating the payment of capital gains tax on such direct gifts.
| Sell the stock and donate the cash | Donate the stock directly to charity | |
| Purchase Price |
$10,000 |
$10,000 |
| Current Value |
$50,000 |
$50,000 |
| Capital Gain |
$40,000 |
$40,000 |
| Taxable Capital Gain @ 50% |
$20,000 |
$0 |
| Net Tax Payable @ 45% |
$9,000 |
$0 |
| Tax Credit @ 45% of donation* |
$22,500 |
$22,500 |
| Value of remaining Tax Credit - used to pay other tax liablilities |
$13,500 |
$22,500 |
| Benefit to Charity |
$50,000 |
$50,000 |
| Sum of Benefit |
$63,500 |
$72,500 |
* Tax rates vary from province to province.
Some Rules:
To qualify for this special tax treatment, the securities must:
1. Be publicly traded securities which include:
- Stocks or stock listedon an approved stock exchange
- Unites or shreas in a Mutual Fund
- Units of a segregated fund trust from an insurance policy
2. Have appreciated in value
3. Be donated in kind to a charity or public foundation
- Not sold by donor
- Ownership transferred directly to charity or public foundation