Gifting publicly traded appreciated securities directly to Humber College Institute of Technology & Advanced Learning is a great way to support excellence in education. The investment you make today will pay dividends in enhancing the learning environment for Humber students. It's not just giving back; it's looking forward.
Under new rules in the 2006 federal budget, it is now even more attractive to donate publicly traded securities (such as stocks, bonds, exercisable options or mutual funds). When they are donated directly to Humber, none of the capital gain is taxable.
Shares can be electronically transferred; they can also be transferred in hard copy in the donor's name (provided Humber is given power of attorney) or they can be re-registered in Humber’s name. In all cases, the charitable tax receipt will reflect the daily average of the published high and low values of the securities on the date they were received by Humber.
By contrast, if a donor were to sell the same appreciated securities and then donate the proceeds to Humber, 50% of the capital gain would be taxable.
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Donate securities directly to Humber |
Sell securities and donate after-tax proceeds to Humber |
| A |
Fair market value of securities and
amount of charitable tax receipt |
$25,000 |
$25,000 |
| B |
Cost Base |
$5,000 |
$5,000 |
| C |
Capital gain realized (A-B) |
$20,000 |
$20,000 |
| D |
Taxable capital gain |
0 |
$10,000 50% of capital gain |
| E |
Value of tax credit
(assuming 50% combined rate) |
$12,500 |
$12,500 |
| F |
Tax due on gain |
0 |
$5,000 50% x $10,000 (D) |
| G |
Tax Savings (E-F) |
$12,500 |
$7,500 |
How to make a gift of securities to Humber:
Step 1:
Complete Humber College’s Securities Gift Form.
Step 2:
Send or fax a copy to your broker to provide them with the authorization and details to initiate the transfer to Humber College.
Step 3:
To confirm your transaction, fax the completed form to the Humber Advancement Office at 416-675-5074. This provides Humber with clear instructions on how the gift is to be directed and receipted.
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