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Gifts of publicly traded securities

Make a donation at a lesser cost, with no capital gains tax on donated securities

Yves Érard

“HEC Montréal is a gateway to the world for aspiring business professionals, and I’m happy to have contributed to this in my own small way by setting up a scholarship. Donating shares was a tax-efficient option for me, but more importantly it let me do my part to give students an opportunity to focus on their studies and be exposed to a variety of rewarding experiences.”

Yves Érard, HEC Montréal 1988

Gifts of publicly traded securities allow you to significantly maximize the amount and impact of your donation without increasing the cost to you.

Simple. Your securities broker can make the necessary arrangements quickly and easily. We will provide you with a form to fill out and additional information to facilitate the donation process.

Powerful. In the case of an immediate gift, you’ll see the impact right away.

Tax-efficient. By transferring your securities to the Foundation, you will be able to avoid capital gains tax. You will receive an official tax receipt for the fair market value of the donated securities, as calculated on the date they are received. This results in considerable savings so you can stretch your donation dollar even further.

Flexible. You can gift your securities right away or do so as part of your will. You may also want to consider giving through your holding company for an even greater benefit. Ask your tax advisor or broker for more information.

You’ll be acknowledged for your generosity during your lifetime, whether your gift is immediate or deferred through a bequest.

Do you have a holding company?

You may be able to leverage this solution to make your gift even more tax-efficient.

Simon Lamarche et Jean-François Renaud

“Donating stock let us maximize the value of our gift without it costing us any more. And it’s as simple and straightforward as making a cash donation. It really is a win-win scenario!”

Simon Lamarche and Jean-François Renaud, HEC Montréal 2001
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Learn more

A holding company has a capital dividend account (CDA), which allows it to pay tax-free dividends to shareholders. The CDA balance includes the non-taxable portion of capital gains. Since the capital gains resulting from a gift of securities is tax-exempt, donating through a holding company lets you increase the amount that can be in the CDA. This entitles you, as a shareholder, to receive more tax-free dividends

Your holding company could also deduct the amount of the donation from its taxable income and would not have any tax to pay on the capital gain. This would then trigger personal dividends, which would also be tax-free. As a result, you can significantly reduce the cost of your donation and give even more to the Foundation. In other words, you’d be increasing how much you donate at no extra cost to you.

We’re here for you every step of the way!

Mireille Lafond
HEC Montréal 1979
Major and Planned Gifts Director
Member of CAGP and APFF

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

Badreddine Maamar
HEC Montréal 2007
Major and Planned Gifts Advisor
Member of CAGP

badreddine.maamar@hec.ca
514 340-7186

The HEC Montréal Foundation’s CRA registration number is 118924158 RR0001.

Alumni + Foundation > Give now > Planned giving > Gifts of publicly traded securities