Securities

How it works

Gifts of securities may include publicly traded shares, bonds and mutual funds. When you donate eligible securities directly to the University of Waterloo, you receive a charitable tax receipt for the fair market value of the securities on the date they are received by the University (based on the average of the day's high and low trading prices). In most cases, you may also be exempt from paying capital gains tax on the donated securities. If you sell the securities yourself and donate the cash proceeds instead, capital gains tax may apply.

Please plan ahead. The time required to complete a transfer varies depending on the type of security and your financial institution. While many publicly traded securities can be transferred within a few business days, mutual fund transfers may take between two and six weeks, depending on the fund company and brokerage. If you are planning your gift for a specific tax year or deadline, we encourage you to contact your broker or investment advisor as early as possible to allow sufficient time for the transfer to be completed.

To make a gift of securities

To donate securities, you must work directly with your broker or investment advisor to initiate the transfer. The University of Waterloo is unable to initiate the transfer on your behalf. You may initiate an electronic transfer from your broker to Waterloo’s broker using our Letter of Direction for a Gift of Securities.

Follow these steps:

1. Complete the Letter of Direction for a Gift of Securities - Letter of Direction for a Gift of Securities.
2. Provide the completed Letter of Direction to your broker or investment advisor. They will use the information provided to initiate the electronic transfer of your securities to the University of Waterloo's brokerage account.
3. Send a copy of the completed Letter of Direction to the University of Waterloo at Development (email or mailing address). This allows us to anticipate your gift, monitor the transfer, and ensure your charitable tax receipt is issued promptly. Transfers received without the University of Waterloo having received a completed Letter of Direction may delay the processing of your gift and could prevent the issuance of a charitable tax receipt.
4. Notify your Development Officer (if applicable) once you have instructed your broker to initiate the transfer.