Gifts of Stocks and Securities
Supporting Schulich Through a Gift of Securities
You can help Schulich School of Business plan for the future with a gift of securities.
Why Donate Securities?
In 2006, gifts of publicly-listed securities became exempt from any capital gains tax. Donate an appreciated investment to Schulich and you won’t have to pay tax on any of the gain.
What are the Benefits?
When you sell a publicly-traded security, you are subject to income tax on 50% of the capital gain. By choosing to donate that appreciated investment, today or as a bequest in your will, you will reduce the real cost of your charitable giving by the amount of capital gains tax saved. You might even opt to increase the amount of your gift without increasing the net cost. A tax receipt for the fair market value of the donated shares (the closing price on the day the gift is received by the School) could offer added tax benefits.
How Do I Get Started?
Talk to your professional advisor about your plans and then contact Schulich’s gift planning team for details on how to transfer your shares directly to York University. Our staff advisors can help you draft a gift agreement, which outlines how you’d like your gift designated once the shares have been sold.
What Might my Gift Support?
Unrestricted gifts can be used by Schulich for the area of greatest need or you may choose to designate your gift to a specific purpose. You will also have the choice of making an expendable gift, which will be spent during the fiscal year it is received, or an endowed gift, which will be invested in perpetuity with only a portion of the income applied each year for the stated purpose.
How Will my Gift Be Recognized?
Depending on your gift designation, you may have the option of naming your chair, scholarship or space. When you make a gift of publicly-listed securities, you will become a lifetime member of The White Rose Legacy Circle. Your name will be printed in donor listings, and you will receive front-of-the-line privileges for select York University events and a special invitation to our annual, members-only event. With your membership, you will become a part of Schulich’s special donor family — those who are integral to our future and part of our distinctive international alumni network.
The Right Choice for You
Donate one of the following securities and save 100% of the capital gains tax:
- listed shares, rights and debt obligations
- shares of a Canadian public mutual fund corporation
- units of widely-held Canadian mutual fund trusts
- interest in related segregated fund trusts
- most partnership interests that are exchangeable for publicly-traded securities
Sample Gifts of Securities
You want to make a gift of $25,000 to Schulich.
| Option 1 Sell stock and donate cash proceeds to Schulich |
Option 2 Donate and transfer stock directly to Schulich |
|
| Market value of security | $25,000 | $25,000 |
| Cost base | $5,000 | $5,000 |
| Capital gain | $20,000 | $20,000 |
| Taxable gain | $10,000(50% of capital gain) | $0 |
| Tax on gain | ($4,500)(45% of taxable gain*) | ($0) |
| Tax credit on gift | $12,500 | $12,500 |
| Net tax savings | $8,000 | $12,500 |
| Cost of gift | $17,000 | $12,500 |
*Assumes a tax rate of 45%.
This financial information is provided only as a sample. It should not be relied upon as a substitute for professional advice. Schulich’s gift planners can assist you and your legal advisor in drafting the most appropriate wording for your gift to ensure that your wishes are consistent with the mission and values of Schulich and that your intentions can be honoured in the future.
To learn how you can make a gift of securities to the Schulich School of Business, contact:
Ana Santos
Advancement Officer, Major Gifts
asantos5@schulich.yorku.ca
(437) 335-3156