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MRU Foundation

Support Mount Royal University Through a Gift of Securities

An Effective Way to Save More, and Give More

  • A gift of securities is a tax-effective opportunity to transform an asset of appreciated securities into an impactful gift for our students. 
  • Publicly-traded securities include mutual funds, bonds, or stocks traded on Canadian or most U.S. stock exchanges.
  • The capital gains tax advantage also applies to donations of publicly traded shares acquired through employee stock options. Certain conditions apply; please speak to your financial advisor before proceeding. 

How to Make a Gift of Securities

Step 1: Decide which securities you want to donate directly to Mount Royal.
Step 2: Contact the Mount Royal Foundation at gos@mtroyal.ca. Mount Royal will work with you and your financial advisor to ensure a smooth transfer of your securities to Mount Royal’s broker account.
Step 3: Mount Royal’s broker will sell the securities and direct the proceeds to the program area you have specified. Our Foundation team can also support you in finding an area of interest that fits with your philanthropic goals.
Step 4: You will receive a charitable tax receipt equal to the closing value of the securities on the date the securities are received in Mount Royal’s account.

How Gifts of Securities Donations Work

Raya has decided to support Mount Royal University’s Nursing program with a gift. With advice from her financial advisor, Raya chooses to fund the gift through some appreciated publicly-traded stock in her portfolio. Initially, she had asked her broker to sell the stocks to use the cash proceeds to finance her gift. However, her broker advises Raya to donate the shares directly to Mount Royal.

The broker explains it like this: (assuming a tax rate of 50 percent for Raya as she is a resident of Alberta.)

 


Option One:
Sell Securities and Donate Cash

 Option Two:
Donate Securities Directly to
Mount Royal University Foundation
  Market Value of Security $25,000.00 $25,000.00
  Cost Base of Security $10,000.00 $10,000.00
  Capital Gain $15,000.00 (for donor) $15,000.00 (for Mount Royal University Foundation)
  Taxable Capital Gain $7,500.00 $0 (Mount Royal University is tax-exempt)
  Tax Due on Capital Gain $3,750.00 (50% of taxable gain) $0 (no capital gains tax)
  Donation Amount After Taxes $21,250.00 $25,000.00 (a larger gift)
  Tax Receipt for Gift $21,250.00 $25,000.00 (a larger tax receipt)
  Tax Credit for Gift $10,625.00 $12,500.00 (a larger tax credit)
  After-tax Cost of Gift $13,750.00 $10,000.00

 

These are general figures for the purpose of illustration. They do not constitute legal or financial advice.

*Example uses Alberta federal and provincial combined tax rate of 50%. Tax rates vary by province.

 

 

Contacts

For answers to administrative questions about your securities transfer, please contact:

Rom Abella
Finance and Information Officer
Advancement Services and Annual Giving
gos@mtroyal.ca
403-440-7758


Please note that support is limited to information regarding how to make a transfer of securities to Mount Royal University. Mount Royal University cannot provide you with personal financial, tax or legal advice related to your donation.

Disclaimer: The information on this website is provided as general information and does not constitute financial, tax or legal advice.  Your individual circumstances may have implications on the information presented in this document.  If you are considering making a donation of a gift of securities, we strongly encourage you to consult with your own personal advisors prior to doing so.