Types of Planned Gifts
A charitable bequest to uOttawa is a gift made through your will that is distributed by your estate. The University will issue a receipt for the bequest, which will result in a tax credit that may be claimed to offset up to 100% of your taxable income in the year of death and the preceding year.
A charitable bequest can be designated for a specific purpose at uOttawa and such gifts can be an absolute dollar amount, a specific asset, or as a percentage or the remainder of your estate.
Some of the advantages of creating a bequest are:
- A bequest costs nothing now, yet gives you the satisfaction of knowing you have provided for uOttawa in the future.
- You can provide financial support to uOttawa that you may not be able to contribute during your lifetime.
- You can designate a charitable bequest and modify your bequest if your circumstances change.
- Your estate will receive a receipt for the full value of the bequest, which will reduce, or may even eliminate, the income taxes payable by your estate.
A gift of life insurance enables you to make a significant, lasting contribution to the University of Ottawa at a modest cost, while reaping attractive tax benefits. Many of our younger alumni and donors would like to make a significant contribution; however, they may not have the financial resources to make a large gift during their lifetime. A gift of life insurance is the perfect solution. Moreover, you can donate through either a new or existing insurance policy.
Immediate tax benefits:
- If you purchase a new policy: by making the University the owner and beneficiary of the policy, you receive immediate tax-creditable receipts for any premiums paid. You then continue to pay the premiums and receive a charitable tax receipt for those payments. This designation cannot be changed.
- If you transfer an existing policy: by making the University the owner and beneficiary of the policy, you receive an immediate tax-creditable receipt for the policy’s market value. Any continued premium payments also qualify for a charitable tax receipt.
Deferred tax advantages:
When you name the University as the beneficiary of the policy (but not as the owner of the policy), your estate is entitled to a tax-creditable receipt. The gift remains outside the estate and is not subject to probate fees.
Gift of Securities
You can donate securities directly to the University of Ottawa to eliminate the capital gains tax on your investments. Canadian law currently allows you to donate traded securities, mutual funds and bonds to registered charities without having to play capital gains tax. To avoid paying capital gains tax, the securities must be transferred directly to the University and not cashed first.
RRSP’s and RRIF’s
You can name the University of Ottawa as the beneficiary of your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF). The value of your retirement plan is removed from your estate, which can greatly reduce the tax owing on your final Canada Revenue Agency tax return. Due to recent tax changes, you no longer need to designate the recipient charity in your will.* Just sign a declaration provided by your financial institution to designate the University of Ottawa as a beneficiary.
Once your needs and those of your loved ones have been taken care of, you can donate registered assets such as a Registered Retirement Savings Plan or a Registered Retirement Income Fund to create a legacy that will benefit the University of Ottawa and effectively reduce the taxes payable by your estate.
* If you are a resident of the Province of Quebec, you must designate the beneficiaries of your RRSPs and RRIFs through a clause in your will.
For Allied Professionals
Legal name : University d’Ottawa, City of Ottawa, Province of Ontario, Canada
Charitable Registration Number for Revenue Canada : 11927 8877 RR0001
Our Planned Giving team will be happy to assist you in exploring the various options to help achieve your philanthropic goals.