Tax-smart giving

Donating publicly traded stocks and securities is a tax-smart way to support U of T. You will receive a charitable tax receipt for the fair market value of the donated security and you will not pay tax on any capital gain.

You can support the University’s greatest needs or you may designate your gift to a University priority that meets your interests.

Eligible gifts of stocks and securities include shares, debt obligations or rights listed on a designated stock exchange, a share of the capital stock of a mutual fund corporation, a unit of a mutual fund trust, an interest in a related segregated fund trust, or a prescribed debt obligation.

Benefits of gifts of stocks and securities:

  • The capital gain inclusion rate is zero when eligible stock or securities are donated directly to U of T. If you sell the shares and donate the proceeds, you will be required to pay capital gains tax.
  • The value of your charitable tax receipt will be based on the market closing price on the day that U of T receives your stock or securities in its brokerage account.
  • Donors making a gift of shares acquired through an employee stock option plan of a publicly traded company benefit from the favourable treatment of a zero capital gain inclusion rate. To be eligible for this benefit, you must donate these shares in the same calendar year and within 30 days of their acquisition.

Example: Jeff decided to support U of T with a gift of $100,000. When reviewing whether he should sell his shares in a publicly-listed corporation and then donate the cash proceeds, or donate the shares directly, Jeff learned that he would have a greater net tax benefit by donating the shares directly to U of T. The chart below assumes a tax rate of 50 per cent.

Fair Market Value $100,000 $100,000
Cost Basis $20,000 $20,000
Capital Gain $80,000 $80,000
Taxable Gain $40,000 $0
Tax Credit (at 50%) $50,000 $50,000
Tax on Gain (at 50%) $20,000 $0
Tax Savings $30,000 $50,000

Gifts of securities through your estate:

When your executor donates securities, your estate does not pay capital gains tax on the appreciated securities and it also benefits from the full charitable tax receipt.

For more information, please contact:
Michelle M.B. Osborne, CFRE
Executive Director, Gift Planning
J. Robert S. Prichard Alumni House
21 King’s College Circle
Toronto, ON M5S 3J3

Donor recognition

The King's College Circle Heritage Society recognizes alumni and friends who have remembered the University through a provision in a will or other form of planned gift.

If you have left a gift in your will, please let us know.