Shares and Securities

George Knowles,

George Knowles, '72 MBA

Publicly listed securities include financial instruments such as stocks, bonds and mutual funds. Donating them directly to the University of Alberta makes a difference and may entitle you to some significant tax benefits. When you transfer securities to UAlberta, you receive a tax receipt for their fair market value. Any capital gain will not be taxed, whereas 50% of the gain is taxable if you sell them and donate the proceeds. The tax credit can offset taxes owing on up to 75% of your taxable income in the year of the gift. 

Any unused portion of the receipt can be carried over for up to five more years. If you donate securities through your will, your estate will get the same tax benefit and a receipt that can reduce up to 100% of your net income in the year of your death. Any remaining part of the receipt can be used to claim a tax refund from the previous year.

Share the Means

George Knowles, ‘72 MBA, remembers visiting a residential school in the mid-1950s. The church-run institutions were just past their peak, with tens of thousands of Indigenous children having been torn away from their families, starved of their culture and abused. Knowles’s tour was brief. It would take more than a half-century before he heard the truth. 

In 2014, Knowles attended a Truth and Reconciliation Commission hearing in Edmonton. Two people whose parents went to residential school spoke of the intergenerational trauma caused by the experiences. Knowles listened as they shared their struggles with abuse, addiction and finding purpose in life. At that moment, he understood the immense challenges Indigenous people have faced for decades. And although residential schools were the source of the trauma, Knowles became convinced that higher education could eventually bring healing to Indigenous communities.

Through a gift of publicly traded securities, Knowles created an award for students in the Faculty of Education’s Aboriginal Teacher Education Program, which is addressing the urgent need for more Indigenous teachers and content at schools in northern Alberta. He also committed a gift of shares in his will to sustain the award. “I’m hopeful that the award will help at least one University of Alberta student make a difference,” he says.

 

Shares, bonds, mutual funds, warrants, options can all be donated
Capital gain not taxed when certain securities gifted

How it Works

A UAlberta supporter donates shares valued at $50,000 (with a $40,000 capital gain): 

  1. She receives a $50,000 tax receipt. *
  2. She receives a  $25,000 tax credit. *
  3. She avoids paying $7,800 in tax on the capital gain. 

* Tax credit depends on donor’s income and specific circumstances