A gift of publicly traded securities can provide you with an unexpected means to make a significant contribution to Ivey at a relatively low-cost to you.
By making a gift of equities, bonds and mutual fund units to Ivey, your taxable capital gain is eliminated.
In contrast, if you choose to sell appreciated securities during your lifetime, or if these assets are liquidated through your estate, tax must be paid on 50 per cent of the capital gains on those securities. Donating securities to a registered charity such as Ivey provides an opportunity to eliminate a significant tax liability that would otherwise eventually have to be paid.
Advantages of Gifting Securities
- Ivey will issue you a charitable tax receipt for the fair market value of the gift of securities to be used for tax purposes. The fair market value will be the closing price of the securities on the date the securities are received by Western.
- If your donation exceeds the amount eligible for a tax credit in the year your gift is made, the excess credit may be carried forward up to five years.
- If you leave securities to Ivey through your Will, your estate will receive the same tax benefits. Gifts made through your Will can be claimed up to 100 percent of your net annual income in the year of death and the year preceding.
Gifts through employee stock options
The capital gains tax advantage also applies to donations of publicly traded shares acquired through employee stock options. Certain conditions apply and the shares must be donated to Western within 30 days of the stock option being exercised.
Making your Gift to Ivey
Any gift planning should be done in consultation with your financial or tax advisor.
Please click here to access the securities forms.
Additionally, we ask that you contact Meghan Wilhelm, Manager, Annual Giving or call 519.661.3978 for information that you and your broker need to make giving securities easy, and to discuss how you would like the proceeds from your gift to be used.