Giving to SMU

Calculating Tax Benefits


Photo for Tax Benefits page on website


Cash Gifts

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.


Capital Gains

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

Example:

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
46.5%)
$1,395 $0
Value of Charitable Donations Credit
(assumes combined credit is 46.5%
46.5% ? 10,000)
$4,650 $4,650
 
Net Tax Savings
Tax credit $4,650 $4,650
Tax payable on gain - 1,395 0
Net Tax Savings
$3,255 $4,650
Donation Receipt $10,000 $10,000

Eligibility

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

Professional advice

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.


Tax Receipts

Receipts will be issued for all eligible donations. Charitable Business # BN 11918 9900 RR0001.


Questions?

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 development.office@smu.ca.