Benefits to You:
- Tax receipt based on fair market value on the day ownership is transferred
- No capital gains tax on disposition of securities if transferred directly to the university
- Amount of contribution creditable in any one year is 75% of net income. Carry-over period for excess contributions is five years
Benefits to USask:
- Immediate use
- Little risk
Gift examples and suitability:
- Publicly traded securities including stocks and bonds
- Suitable for owners of securities who can afford to give the asset and the interest or dividends it earns
You can donate securities electronically or by re-registering the securities in the university’s name and providing us with a stock certificate.
Transfer of securities
To facilitate a transfer of securities, please complete the Request for Transfer of Securities form and provide a copy to both the University of Saskatchewan and your financial planner.
Information required to initiate a transfer
|University of Saskatchewan Brokerage Firm:|
|BMO Nesbitt Burns
306 – 123 – 2nd Ave S
Saskatoon SK S7K 7E6
|RBC Dominion Securities
Suite 1400, 333 – 7th Ave SW
Calgary AB T2P 2Z1
Toll Free: 800-310-6484
|University's Account Number:|
|610 - 05149 - 15||701 - 84049 - 18|
(for transfers from within Canada)
|T009 (T, zero, zero, 9)||T002 (T, zero, zero, 2)|
(for transfers from within the United States)
If you need help or would like more infomation please contact us and we can assist you.
Mr. Jones donates 1000 publicly traded shares valued at $10 per share. The shares were $4 per share when Mr. Jones bought them.
Donation receipt = $10,000
Tax credit (assume 44% tax rate)= $4,400
Capital gain = $10,000 - $4,000 =$6,000
Tax on gain =$0 (since they have been donated)
Net cost of gift = $10,000 - $4,400 = $5,600
If the shares were sold first and the proceeds donated:
Capital gain = $6,000
Taxable gain = 50% X $6,000 = $3,000
Tax on gain (assuming 44% tax rate) = 44% X $3,000 = $1,320
Net tax savings = $4,500 - $1,320 = $3,180
Net cost of gift = $10,000 - $3,180 = $6,850
Therefore, a tax savings of $1,250 will be realized if the shares are donated directly to the university instead of selling them and giving the proceeds to the university.
The information provided here is of a general nature and should not be taken as a substitute for professional advice. We urge you to consult with your advisors to ensure that a particular option is right for your financial and estate planning situation.