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Supporting Huron and Saving Taxes

A gift of securities to Huron University College can be both tax-effective and help keep Huron a first-class community of learning for its students.

How to make a gift of securities to Huron

Making a gift of securities is straightforward and can be done in a way which works best for you and your broker. The link below provides all the necessary information to do this.

Please click here for our guide on how to make a gift of securities to Huron

Please click here to download and complete Making a Gift of Publicly Listed Securities Form

For RBC clients - please click here

 

The tax advantages

Since May 2006, donations of publicly listed securities such as stocks, bonds and mutual funds to public charities have been exempt from capital gains tax. This offers donors the opportunity to realize major tax savings while at the same time supporting the first-class educational experience offered by Huron University College. Donors may make a gift of securities to support a particular area of college life, such as scholarships, bursaries, the library, international studies, and volunteer service.
The following example shows how, if you own securities and wish to donate them to Huron, considerable tax savings are possible:

Gifts of securities to Huron

Market Value
$25,000
 Original Purchase Price
$15,000
 Capital Gain $10,000
 Tax Payable on Capital Gain
$0
 Tax Credit from Gift
$11,250
 Net Cost of Gift
$13,750

The above assumes a marginal tax rate of 45 per cent.


In 2006, Huron alumna Helen Moore made a gift of securities to Huron for a bursary in her late husband's name. 

  • Helen Moore's gift to Huron

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  • Helen Moore is a 1962 Huron graduate. In 2006, she donated shares of CI Fund Management to The Stewart Moore Bursary Fund in memory of her late husband. Helen wanted to help provide financial assistance to Huron students who otherwise may not be able to attend university. Since her gift was made to a registered charity such as Huron, she saved considerable tax dollars because she paid no capital gains on the sale of securities, which had appreciated considerably in value. Helen describes her story below.

    In 1994 I was subscribing to Moneyletter, an investment newsletter, in which Gordon Pape wrote that there was an impending IPO, initial public offering, of CI Fund Management (now called CI Financial) shares that would be a good investment.

    At the time we had $5,000.00 available for investment which I gave to David MacLeod, a broker and fellow Huron University College Alumnus '89, who purchased 400 shares @ $11.00 each for $4400.00. Since it was an IPO there were no fees.

    Over the years CI Financial paid dividends which totalled $7,264.00. I didn't pay a lot of attention to the investment but fortunately had enough good judgment to do nothing with it. By 2004 the value of the investment had grown to $50,000.00. I realized that the capital gains tax liability would be so great, even if I donated the shares, that I would probably never redeem or give away the shares during my lifetime.

    Through the years there were stock splits so the 400 shares became 3200 shares: eight times the initial number of 400 shares. In April 2006, the share value reached a high of $33.39 so at that time the value of the $4400.00 initial investment had grown to $106,848.00.

    Planning to become an income trust, CI Financial sent out a Notice and Management Information Circular indicating that shareowners had a choice of three options needed to convert to an income trust. It appeared that there were tax implications for all three choices. As I began to realize the result of any decision, especially the tax implications, I also recalled reading that effective May 2nd, 2006, any donation of shares to a charity was not taxable although formerly the capital gains tax had been 25%.

    I decided that this would probably be the best time to donate the shares since if I converted my shares to an income trust I would have to pay taxes on the conversion and the amount that I would have available to donate at any future time would be diminished by my tax liability.

    Huron University College was one of the organizations I considered. When I think of Huron University College I am very thankful that I received my Bachelor of Arts degree there. It is hard even to imagine not having a degree and all the doors that having it has opened to further education as well as employment opportunities.

    When I began receiving mailings requesting support for Huron I considered how much my degree set the stage for the life I have and continue to enjoy. In addition, I recall the financial assistance that I received while a student at Huron including a bursary for working in the library. So the opportunity to make a gift to Huron and establish a bursary so that other students could benefit, as I had, was very inviting.

    Earlier, my husband and I set up a bursary at Huron named for my parents with funds matched by the Government of Ontario as part of its Ontario Trust for Student Support (OTSS) program.

    Last summer I set up a bursary named for my late husband Stewart. You can only imagine, perhaps, how excited I am about being able to make this donation of my CI Financial shares to Huron University College to a bursary named for my husband. I so much enjoy Kahlil Gibran's "The Prophet" where he speaks of giving, "All you have shall some day be given; Therefore give now, that the season of giving may be yours and not your inheritors."