Gifts of Securities
Donating publicly traded stock and securities is an easy and tax-smart way to support the McGill University Health Centre
It is more advantageous for both the donor and the charity to gift the securities directly to the Foundation, rather than sell them and donate the proceeds. The donor will not have to pay any tax on a capital gain if the securities are donated to the MUHC Foundation, whereas if one were to sell the securities, 50% of the appreciated value would be subject to capital gains tax, resulting in a larger tax burden for the donor and a smaller gift to the charity.
A gift will not qualify for the capital gains tax elimination if the shares are sold and the cash is then donated to a charity. The gift must be made “in-kind” to qualify for the capital gains tax exemption, so the securities must be transferred directly into the Foundation’s brokerage account. A donation receipt is issued for the fair market value of the security on the date of transfer.
For more information on transferring securities to the MUHC Foundation, please contact:
McGill University Health Centre Foundation Charitable Registration Number: 86843 3947 RR0001