Royal Victoria Regional Health Centre Foundation

Charitable Gift Annuity

If your client age 65+ is interested in making a significant gift but still requires income generated from their assets, a re-insured charitable gift annuity to RVH may be of interest. Your client will irrevocably transfer a minimum of $25,000 cash or marketable securities to RVH with a portion (at least 20 per cent) providing an immediate gift for charitable purposes. The remainder is then used to purchase a commercial annuity to provide secure fixed payments to the donor and/or spouse for life or a certain period of years. Payments are based on the size of the gift, your client’s age and gender, and current interest rates. RVH Foundation may assist in obtaining a personalized no-obligation quote for your client’s consideration.

Benefits:

  • Increased disposable income from secure fixed payments compared to interest generated through a GIC
  • Depending on your client’s age, a significant portion or all of the payments may be tax-free
  • Your client is able to make a significant gift to benefit the charity
  • Your client will receive an immediate tax receipt for the gift portion reducing taxes paid the year the gift is made, or may be carried forward up to a maximum of five years

Charitable Insured Annuity

Another option for your client age 65+, a charitable insured annuity allows a donor to receive annuity income with a portion funding an insurance policy with the charity named as owner and beneficiary.

Benefits:

  • Increased disposable income from guaranteed fixed payments compared to interest generated through a GIC
  • A portion of the annuity payment is used to fund an insurance gift to provide a significant future gift for RVH Foundation
  • Premium payments on the insurance policy qualify for a charitable tax receipt reducing income taxes owing

Gift of Registered Retirement Savings Plans

In 2000, the federal budget made provision that allows a charity to be named as the direct beneficiary of Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) with the donor’s estate eligible to receive an official tax receipt for income tax purposes.

At death, 100 per cent of funds invested in your client’s registered retirement funds are taxable as income to your client’s estate unless they roll over to a surviving spouse or dependent child. However, your client may choose to name RVH Foundation as the direct beneficiary for a portion or all of their RRSP or RRIF, instead of their estate. Upon death, the proceeds will transfer to RVH Foundation with a charitable donation tax receipt for the full amount provided to the estate. The donation receipt will offset taxes owing should the RRSP/RRIF beneficiary designation be your client’s estate.

Benefits:

  • Your client’s estate will receive a donation receipt that will offset taxes payable on the distribution of retirement funds
  • As this gift is made outside your client’s estate, it is not subject to probate fees
  • Clients can make a substantial gift in a tax effective way

There is also an option for your client to gift a portion of their RRSP to RVH Foundation when they are converting it to an RRIF. While this may reduce your client’s retirement income, their reliance on this income may not be necessary making this an attractive option to make a gift and recover some of the taxes through the tax credit they will receive for their gift.

Benefits:

  • Tax receipt for immediate use in the year the gift is made, offsetting taxes owing on the retirement funds that may be used to offset 75 per cent of net income, carried forward for up to five years
  • Clients can make a substantial gift in a tax effective way