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Gifts of Stock Options

Donating shares resulting from the exercise of stock options is a convenient and cost-effective way to give.

        

Who is this type of giving for?

Senior managers of publicly traded companies who receive stock options as part of their compensation package.

        

Donor benefits

  • Significant reduction in the corresponding taxable income.
  • Tax receipt for the fair market value of the stock options.
  • No capital gains tax on donated securities.
  • See the immediate impact of your donation.
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Additional information

You can give this type of gift if you work for a publicly traded company and you receive stock options as part of your compensation package.

Exercising employee stock options can result in taxable employment income within the same fiscal year.

However, if after exercising your options, you decide to gift them within 30 days (prior to the end of the fiscal year), you will benefit from a reduction in the applicable tax rate, to the tune of roughly 6%.

In addition to your tax savings, you will receive a charitable receipt, which will give you access to a 48.2% tax credit.

Note that you can also donate your stock options instead of exercising them.


The HEC Montréal Foundation does not provide financial or legal advice. The examples used here are for illustrative purposes only. Please consult your financial or legal advisor to ensure that the selected donation option takes into account your specific circumstances as well as all applicable legal and tax implications.

Questions about planned giving?

Contact :

Mireille Lafond

Mireille Lafond HEC 1979
Major and Planned Gifts Advisor

mireille-c.lafond@hec.ca
514-340-7735

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