Students benefit from new tax policy

By Kelly Exner

It’s been two years since the federal government introduced a policy to give better tax breaks for the philanthropic donation of shares. Over this time, the University of Calgary has seen a dramatic rise in donations coming in the form of company stock—gifts of shares doubled from 2004/05 to 2006/07.

“Since the new rules were announced, we had an immediate influx of donations and queries about donating shares,” says Gary Durbeniuk, vice- president of development.

“This continues to this day from donors, both established and young. This is a wonderful example of how donors can both fulfil their philanthropic objectives and respond to incentives.”

The federal policy change eliminated tax on “in-kind” donations of securities, flow through shares, mutual funds, segregated funds and other tradable securities to registered charities.

Donations of these investments produce a tax receipt equal to the fair market value of the investment donated, while at the same time eliminating any capital gains tax otherwise payable.

At the U of C, at least $12 million has been donated in shares over the past two years, up from $6 million in the two years previous. Charities across the nation have reported similar gains in donations and added interest from donors.

“My gift of shares allowed me to not only provide a gift that had tax advantages while I am living, but also allowed me to provide a lasting legacy earlier,” says Ted Eddy, U of C alumnus and donor to the Faculty of Veterinary Medicine. “Now I can be around to see some of the folks that will benefit from my gift.”

At the University of Calgary, students are directly benefiting from donations of shares:

• The Faculty of Veterinary Medicine received its largest donation in shares from Eddy, who endowed the Dr. Edward C. Eddy and Mrs. Ruth Eddy Memorial Scholarship in Veterinary Medicine in memory of his parents. An inaugural student scholarship was created for a member of the first class of students this September, and will be awarded in subsequent years.

• U of C alumni Tara and Matthew Brister used a gift of shares to create The Tamaratt Teaching Professorship in Geoscience in the Faculty of Science, which funds the hiring of a new professor to research ways to enhance the teaching of science.

• Ian McLeod is a U of C senator who donated to the Dr. Fok Ying Tung International House, a new building to provide more residential housing for students and short term stays for visitors.

• The Faculty of Medicine established bursaries through shares donated by Joan Engman.