There are significant tax advantages when you donate money from your retirement funds — be it from a retirement savings plan, retirement income fund, company sponsored pension plans or Canada Pension assets — to the University of Calgary. In these cases, the tax credit you receive for giving a charitable gift usually offsets the tax owing on the distribution of the fund. For many people, registered retirement plans may be their single biggest assets beyond their homes.
Gifts of RSPs and RIFs
If you list the University of Calgary as the beneficiary of the proceeds of your retirement savings plan (RSP) or retirement income fund (RIF), there will be a charitable tax receipt issued for the value of the fund, offsetting the taxes owing on the proceeds.
If the beneficiary is other than a surviving spouse or dependant — a niece or nephew, for example — the value of the RSP will be taxed as ordinary income in the year of death.
Gifts of RSPs and RIFs fall outside your estate and therefore are not subject to probate — the process of establishing the validity of a will.
Gifts of Canada Pension assets
You may also use funds from your Canada Pension Plan (CPP) to make a charitable donation. When you receive your CPP payment, simply send the University of Calgary a cheque for the full or partial amount of what you received. You will get a tax receipt for the value of your cash gift.
As you consider a gift to the University of Calgary from your retirement funds, we can work with you and your advisors to identify and document a specific arrangement that works for you. Please contact us for more information or to arrange an appointment at your convenience.