Shares & Securities
Shares & Securities
A donation of publicly-listed stocks, shares or securities is one of the easiest and most effective ways to give, while providing the donor with significant tax advantages. The capital gain resulting from transferring securities to a charitable organization is not taxed. The transaction is generally a simple electronic transfer of shares undertaken by the professional advisor but can include gifts of paper shares when that is what the donor holds.
- Easy handling – Stocks, shares and securities can be transferred electronically.
- Eliminate taxable capital gains – When you donate stocks and shares directly to Luther, your taxable capital gains are eliminated.
- Carry forward excess credit – Excess credit may be carried forward for up to five years if your donation exceeds the amount eligible for a tax credit in the year your donation is made.
- Tax benefits for your estate – If you leave shares, stocks or securities to Luther College through your Will, your estate will receive the same tax benefits.
The chart below shows the tax advantage of donating the shares directly versus selling the shares and then donating the cash proceeds.
|Sell Shares & Donate Cash||Donate Shares Directly|
|Fair market value||$10,000||$10,000|
|Original purchase price||$2,000||$2,000|
|Taxable gain||$4,000 (50%)||$0 (0%)|
|Tax credit (assuming 25%)||$2,000||$2,500|
|Tax on gain (at 50%)||$2,000||$0|
How it works
- The easiest way to donate securities to Luther is to transfer the shares electronically from your brokerage account to Luther’s brokerage account, which is maintained with RBC Dominion Securities.
- Download, complete and send a copy of the Securities Transfer Form to Luther College so we can acknowledge and receipt your gift.
- Donors of appreciated securities receive a tax receipt for the fair market value of their gift on the day it is received.
We strongly recommend you consult your own lawyer or other professional advisor about the applicability to your situation.
For further information, please contact:
Chief Development Officer
Email at email@example.com.
Charitable Registration Number: 10765 0061 RR0001