Ways of Making a Gift

Victoria University can be designated as a beneficiary in your will. Since the gift is deferred, there are no immediate income tax benefits associated with a bequest; however, this type of gift is eligible for a tax receipt which may be applied to up to 100% of the income (including all assets that are deemed as disposed of) stated on your final return. The receipt may also be carried back and claimed in the year previous to death.

Your bequest to Victoria may be one, or a combination, of the following:

• A percentage of your estate
• The residual of the estate
• A specific dollar amount
• Real estate
• Stocks and securities
• Gifts-in-kind (art, rare books, etc.) of value and/or use to the purposes of the University
• Insurance policies and annuities (Victoria alumni are eligible to purchase annuities through the United Church of Canada.)

The drafting of a will should be arranged with the involvement of legal council. It is preferable that you allow for the broadest possible flexibility for determining how your gift should be used by Victoria University while at the same time ensuring that the university can carry out your wishes.

Here is an example of suggested wording:

I give and bequeath to the Board of Regents of Victoria University, Toronto, Ontario, the sum of $________ or ______% of my estate.

If you wish to designate a specific use for your bequest (a scholarship, the library, etc.) please contact Sharon Gregory, Associate Director of Development, Alumni Affairs and Advancement, at the address below, by email at sharon.gregory@utoronto.ca or by telephone at (416) 813-4050 or 1-888-262-9775.

Charitable gift annuities provide support for the university and a secured income stream for your lifetime. Depending on your age, this income can be tax free. An annuity is an agreement where you make an irrevocable payment in return for a guaranteed lifetime income, most or all of which is non-taxable.

For alumni and friends of Victoria College and Emmanuel College, two choices exist for the purchase of annuities:

Commercial Charitable Gift Annuities

Part of your total contribution is used to purchase an annuity from a licensed insurance company. You receive fixed guaranteed payments for life with a portion of this income tax-free depending on your age, and Victoria College or Emmanuel College receives an immediate cash gift for its current needs. Gift annuities may also be purchased for others, such as parents or grandparents.

United Church of Canada

A gift annuity purchased through the United Church of Canada returns income to you, most or all of which is tax-free. The annuity is designed so that, following your death, a residue of 50% is directed to Victoria University. The exact amount of the gift depends on how long you live and future interest rates and inflation.

In both scenarios, probate costs associated with a charitable bequest are avoided and your gift can be designated to a priority at Victoria University that meets your interests.

For more information on gifts of charitable annuities, please contact Louise Yearwood, Executive Director, Alumni Affairs & Advancement, at the address below, by email at louise.yearwood@utoronto.ca or by telephone at (416) 585-4501 or 1-888-262-9775.

Long popular in the United States, charitable remainder trusts are growing in use in Canada as a way for donors to make a sizeable commitment while maintaining the use of their assets for the duration of their life or the term of the trust. Assets placed in the trust can include: cash, stocks, bond, securities and other investments.

If you establish a charitable remainder trust, you will receive a tax receipt for the present value of your assets calculated using life expectancy and prevailing discount rates at the time the trust is established.

By establishing a charitable remainder trust, you will:

• receive a charitable tax receipt at the time the trust is established;
• be able to carry the excess tax credit forward for up to five years if your gift exceeds 75% of your net income in the year that the gift is made;
• receive lifetime income from your donation;
• avoid probate and maintain the privacy of the details of your gift.

For more information on charitable remainder trusts, please contact Louise Yearwood, Executive Director, Alumni Affairs & Advancement at the address below, by email at louise.yearwood@utoronto.ca or by telephone at (416) 585-4501 or 1-888-262-9775.

With a gift of residual interest, you can donate your personal property, continue to use it and receive an immediate tax receipt. Your gift of residual interest can benefit Victoria University in one of two ways:

• The property, following your death, will enhance Victoria’s collections.
• Proceeds of your gift of residual interest can be used to support the university.

The assets placed in trust are typically property such as a principal residence, art work, or book collection. A fair market value for the property is determined at the time of the gift. The donor’s age is taken into account and an appropriate discount rate is used to determine the tax receipt issued. You continue to enjoy the use of your property until the end of the term of the trust.

For more information on gifts of residual interest, please contact Louise Yearwood, Executive Director, Alumni Affairs & Advancement at the address below, by email at louise.yearwood@utoronto.ca or by telephone at (416) 585-4501 or 1-888-262-9775.

Publicly Traded Securities

Federal incentives have made it very attractive to donate publicly traded securities that have appreciated in value.

You can donate shares, bonds, bills, warrants, futures and/or units in mutual funds traded in Canadian, American or major international exchanges to Victoria University. You will receive a tax receipt for the full appreciated value of your gift, and as of May 2, 2006, you will not be liable for any capital gains tax. The receipt value will be based on the closing trading price on the day that your gift is received by Victoria University and the cash value of the securities will be used to support the university.

Employee Stock Options

If you acquire publicly traded securities through employee stock options and donate these securities to Victoria, you will qualify for a reduced employment benefit, assuming you meet with certain conditions. The shares must be donated in the same year and within 30 days of the stock option being exercised.

Tax Savings by Making a Gift of Appreciated Securities*	Sell Stock and Donate Cash Proceeds	Donate Stock
Gift Value	$100,000	$100,000
Cost Basis	$20,000	$20,000
Capital Gain	$80,000	$80,000
Taxable Gain	$40,000	$0
Tax Credit*	$50,000	$50,000
Tax on Gain*	$20,000	$0
Tax Savings	$30,000	$50,000

 * Assuming tax rate of 50% for ease of illustration

If you would like more information about making a gift of stocks and securities to Victoria University, please contact Sharon Gregory, Associate Director, Development, Alumni Affairs & Advancement, at the address below, by email at sharon.gregory@utoronto.ca or by telephone at (416) 813-4050 or 1-888-262-9775.

You can contribute books, real estate, art work, equipment or other tangible personal property to Victoria University. These may be appropriate gifts to enhance the university’s resources and culture. Alternatively, the university may choose to sell the property and use the cash proceeds.

When you make a gift-in-kind to Victoria University:

• A tax receipt for the fair market value on the day the gift is made will be issued. The value is determined by one or more independent professional appraisers.
• Gifts of property may trigger capital gains tax, but the charitable tax credit for the gift will offset the gain. Charitable donations up to 75% of your net income can be claimed, as well as 25% of the taxable capital gain resulting from a gift of appreciated capital property.
• A five-year carry forward on unused donation amounts is permitted.

For qualified gifts of Certified Cultural Property (e.g. rare books, significant works of art), Victoria University is a designated institution and thus these gifts/donations would not be subject to capital gains tax. Please note that a gift of professional services or items from the inventory of a company does not qualify under the Income Tax Act (Canada) for a tax receipt.

If you would like more information about making a gift-in-kind to Victoria University, please contact Louise Yearwood, Executive Director, Alumni Affairs & Advancement, at the address below, by email at louise.yearwood@utoronto.ca or by telephone at (416) 585-4501 or 1-888-262-9775.

Gifts by Americans to Victoria University

Under the Canada-United States Income Tax Convention, a citizen or resident of the United States is entitled to a charitable deduction for gifts to a Canadian university, provided he or she or a family member is or was enrolled. (Family member includes, spouse, children, grandchildren, parents and siblings.)

If these conditions do not apply, U.S. gifts may be made through the Associates of the University of Toronto Inc.
For information on giving to U of T through the Associates, please call toll free:
1-800-699-1736 or e-mail associates.ut@utoronto.ca

Donations may be sent to:
Mr. Gary Kaufman, Treasurer, The Associates of the University of Toronto, Inc.
58 West 84th Street, #2F
New York, NY 10024 USA

Gifts by residents of England, Wales, Scotland and Northern Ireland to Victoria University

The University of Toronto has established a Fund account with the Charities Aid Foundation. Please contact them directly for information pertaining to the tax treatment of gifts in the United Kingdom. The University's Fund reference number is T70139430.

Gifts by residents of Hong Kong to Victoria University

The University of Toronto Hong Kong Foundation solicits and receives donations for scholarships enabling undergraduate students from Hong Kong with financial need to attend the University of Toronto. Visit the website: http://daaoweb.hku.hk/en/hkufoundation/

Are you looking for a unique and meaningful gift for friends, family members or colleagues for the special times in their lives such as birthdays, Christmas, graduation, anniversaries retirements or birth of children?

Victoria can offer you an alternative way to mark special gift-giving occasions with a gift of lasting significance. And you won't have to go searching through malls and shops to find it!

By making a donation to the Victoria Special Gift Fund, you will increase the acquisition fund of Victoria's E.J. Pratt Library or the Emmanuel College Library - the choice is up to you.

Each gift of $50 or multiples thereof, will entitle you to a bookplate(s), in the name of the individual whom you are honouring. A distinctive card will be sent to the person you have honoured with your gift and you will receive a tax receipt.

To make a donation on someone's behalf, please contact Bonette Cruzada, Donations Co-ordinator in Victoria University's Office of Alumni Affairs and University Advancement.

Double or triple the impact of your gift with the help of your employer. Hundreds of companies in North America will match contributions made by their employees to Vic and U of T.

Contact your Human Resources department to obtain a matching gift form and complete your portion. Then, include the form when you send in your gift to the College and we will take care of the rest.

Many of Victoria's contributors choose to support the University by making a cash donation (including gifts made by credit card or cheque). This provides an immediate benefit to the University, and the simplest means of calculating the tax benefit of a donation.

Victoria's charitable business number is 10817 3436 RR 0001.

The following table provides several sample scenarios of the impact of Canadian tax credits on the cost of making a donation to the University.

Amount of Gift and Receipt	Tax Savings* (approximately)	Net Cost of Gift
$100	$25	$75
$250	$70	$180
$1,000	$390	$610
$10,000	$4,185	$5,815

* the calculation of the value of tax credits for charitable gifts varies province by province.

This information is general in nature and does not constitute legal or financial advice, and should not be relied upon as a substitute for professional advice. We strongly encourage you to seek professional legal, estate planning and/or financial advice before deciding on your course of action.