Giving to SMU
Calculating Tax Benefits
To calculate your charitable tax credit, you first need to determine the eligible amount of your charitable donations. The following amounts can be included in the calculation of your tax credit:
- donations made by December 31 of the applicable tax year;
- any unclaimed donations made in the previous five years; and
- any unclaimed donations made by your spouse or common law partner in the year or in the previous five years.
You can claim eligible amounts of gifts to a limit of 75% of your net income.
Once you have determined the amount, use the Charitable donation tax credit rates table to calculate your charitable tax credit. There are two charitable tax credit rates for both the federal government and the provinces and territories. Any eligible amount you give above $200 qualifies you for a higher rate.
For more information and for examples, please visit the Canada Revenue Agency Website.
If you own publicly-listed securities (i.e. shares, bonds, mutual funds) that have increased in value, you will have to pay tax on them when they are sold.
However, you don’t have to pay tax on capital gains if you donate publicly-listed securities to registered charities, such as Saint Mary’s University. You also receive a charitable receipt for the full market value of the securities
The following scenario assumes both a tax rate of approximately 46.5% and that other charitable donations for the year exceed $200. The general annual limit on charitable donations is 75% of net income. Donation claims may be carried forward up to five years.
|TAX BENEFIT OF DONATING SECURITES||Sell Securities & Donate Cash||Donate Securities|
|Fair Market Value of Donation||$10,000||$10,000|
|Typical Cost basis of securities||$4,000||$4,000|
|Capital Gain on security||$6,000||$6,000|
|Taxable portion of capital gain||(50% ? $6000) $3000||$0|
|Tax payable on capital gain (cost)
(assumes a combined tax rate of approx
|Value of Charitable Donations Credit
(assumes combined credit is 46.5%
46.5% ? 10,000)
|Net Tax Savings|
|Tax payable on gain||- 1,395||0|
|Net Tax Savings
To be eligible for this tax exemption, the securities must be:
- Publicly traded on a stock exchange approved by Canada Revenue Agency
- Appreciated in value
If you would like to make a gift of publicly-listed securities to Saint Mary's University, please seek professional guidance from your legal and financial advisors.
Receipts will be issued for all eligible donations. Charitable Business # BN 11918 9900 RR0001.
For more information about making a gift of publicly-listed securities, please contact Saint Mary's University Development Office at 1-888-SMU-GIVE (768-4483) or email firstname.lastname@example.org.