For Canadian residents, Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) can also be powerful donation tools.


Two ways to Give From Your RRSP or RRIF

  • Lifetime RRSP/RRIF gift. Normal lifetime withdrawals from RRSPs or RRIFs can be subject to withholding tax. Withholding tax reduces the funds you would have available to donate and may result in a tax credit that does not offset your tax liability. However, there are ways to receive permission from the CRA to eliminate withholding taxes. This way you can donate 100% of the proceeds and your tax credit will offset 100% of your tax liability.
  • Beneficiary Designation or by Will. Many people need their RRSPs/RRIFs during their lifetime, but are able to donate them after their death instead. Income taxes are owed by the estate, plus, there could be three potential unwanted outcomes: funds are subject to creditors, become subject to probate fees, and gifts in the will could be contested by the person's heirs. This can be avoided by naming a charity as a beneficiary of your RRSP or RRIF at your financial institution OR by making a beneficiary declaration in your will and declaring a charity as a beneficiary.

If you have questions about estate and gift planning, or would like to talk with someone about extending your impact with ReFrame Ministries, please click the buttons below to get in touch with us.