Stocks and Securities
Gifts of publicly traded securities including stocks and bonds are welcome.
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 per cent of net income. Carry-over period for excess contributions is five years
Benefits to USask:
- Immediate use
- Liquid
- 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
How to arrange a gift of securities in your will:
- Your investment portfolio may change over time and you may no longer own a particular asset at the time your gift is realized. It is preferable to specify the amount or percentage you wish to donate to USask and empower your executor to choose which assets will fund the bequest, rather than naming specific securities in your will. This can be accomplished by including an administrative clause that allows your executor to select securities with the highest capital gains, maximizing the tax benefits to your estate.
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 |
| Contact: | |
| Bonnie Guillou Telephone: 306-653-7227 Email: bonnie.guillou@nbpcd.com |
Dave Simpson Phone: 403-266-9615 Toll Free: 800-310-6484 Fax: 403-299-7100 Email: dave.simpson@rbc.com |
| University's Account Number: | |
| 610 - 05149 - 15 | 701 - 84049 - 18 |
| FINS Number: (for transfers from within Canada) |
|
| T009 (T, zero, zero, 9) | T002 (T, zero, zero, 2) |
| DTC Number: (for transfers from within the United States) |
|
| 5043 | 5002 |
| CUID | |
| NTDT | DOMA |
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 per cent 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 per cent x $6,000 = $3,000
Tax on gain (assuming 44 per cent tax rate) = 44 per cent 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.
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.