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Donating an RRSP/RRIF

You can donate a portion or all of an RRSP/RRIF during your lifetime. The financial institution holding your funds will with-hold some taxes when the funds are transferred.

Amount of RRSP Withdrawal

All Provinces
Except Quebec

Up to $5,000

10%

$5,001 to $15,000

20%

More than $15,000

30%

If the withholding tax is not sufficient to cover the amount of taxes payable according to your marginal tax rate, then the remainder will be due when the annual tax return is submitted. However, EFC will issue a charitable tax receipt equal to the value of funds it receives from the donor’s RRSP/RRIF. As a rule the charitable tax receipt will generate a tax credit that is larger than the taxes payable. The surplus tax credit can be used to offset other taxes. Below is an illustration that demonstrates this.

Value of RRSP/RRIF Donation

$15,000

Witholding tax of 20%

3,000

Additional tax payable at year-end
(marginal tax rate of 39% minus $3,000)

2,850

Total tax on withdrawal

5,850

Tax credit from $15,000 donation (46.2%)

6,930

Surplus tax credit
(can be used to offset other taxes payable)

$1,080

You can also name the EFC as the direct beneficiary on your RRSP or RRIF, so that it will directly receive all the funds from the financial institution, upon the donor’s death. When this occurs, the EFC will issue a charitable tax receipt to the estate of the deceased. The tax advantages are the same as if the gift had been made during the lifetime of the donor.

 

Legacy Giving Links:

Form to obtain Gift Annuity quote

Form for Donation of Securities

LG Contact information:
To know more about legacy giving, please contact Bill Winger, Vice President, Operations at legacygiving@theEFC.ca or (905) 479-5885 x 231 or toll free at 1-866-302-3362 x 231

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