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Gifts of securities

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A gift of securities is one of the most cost-effective ways to support UBC, immediately or through a gift in your will. When publicly listed securities are donated to UBC, the tax on the capital gains is eliminated. Any publicly listed securities, including shares, bonds, warrants, stocks, mutual funds and segregated fund units qualify.

Giving securities

Easy and tax effective

UBC gift & estate planners work with you and your advisors to ensure a smooth transfer and a prompt donation receipt.

Making the gift is straight forward: As most securities are held electronically, your broker can usually execute a transfer in one or two days. Even mutual funds can transfer quite quickly.

You receive a charitable tax receipt equal to the mid-point of the trading value or the closing value of the securities, whichever is higher, on the date the securities are received in UBC’s account.

UBC will sell the securities and direct the proceeds to the cause you have specified.

You can deduct the entire gift in the current year or carry tax credits forward for up to five years.

How it works

Let’s look at the benefits of a $20,000 gift of publicly traded securities for a British Columbia resident. We will assume:

  • The donor initially paid $10,000, but the stock is now worth $22,000, so their capital gain is $12,000 ($6,000 is taxable)
  • The donor’s marginal tax rate is in the mid-range at 32.5% (for the purposes of calculating the tax on the capital gain);
  • The donor has made gifts to other charities worth more than $200; and,
  • The donor has sufficient income to be able to deduct the entire gift in the current or following five years.

The donor will receive a charitable receipt in the amount of $22,000 (the value of the securities) and pay $9,614 less in tax ($22,000 x 43.7%) when filing their tax return.

The complete elimination of capital gains results in additional tax savings of $1,950 ($6,000 x 32.5%).

With the combined tax savings (donation tax credit and capital gains), the net cost of the donation is just $10,436 ($22,000 minus $9,614 tax credit minus the $1,950 capital gains tax savings) or 47.4% of the gift.

Donor stories

Your support in action

UBC alumni couple “pay it forward” with gift of securities

Husband and wife team Glen and Margaret Carlson have a lot in common: they are both graduates of the Faculty of Medicine, and they both share a determination to help students pursue their dreams.

Making music through a gift of securities

Roy Barnett’s lifelong passion for music inspired him to make a transformational gift to the UBC School of Music. With the support of his wife Gunilla, Roy made a gift of securities to fund a major renovation of the Recital Hall.

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Where can I get more information?

If you would like to learn more about gifts of securities, we would be pleased to help. We can answer your questions about general estate planning and provide additional information on endowments, student awards and the other gift opportunities at UBC. We also can help you, your lawyer or notary draft customized wording for your will. Please contact us.

Learn more about planned giving at UBC
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