Planned and Legacy Giving
Rolling over your Registered Retirement Income Fund (RRIF) annual distributions is a unique way to begin building your charitable legacy during your lifetime.
The Canadian Revenue Agency (CRA) requires anyone who has reached the age of 71 and has a tax-deferred retirement account, such as a Registered Retirement Income Fund (RRIF), to annually withdraw a minimum amount from these accounts. The amount, referred to as the Required Minimum Withdrawal, is calculated based on the balance of the retirement account at the end of the previous calendar year and life expectancy. These withdrawals are generally taxable events. However, making a charitable gift to AKFC can reduce the tax burden of the Required Minimum Withdrawal.
RRIFs have a special provision where the withdrawal is sent directly to AKFC, thus removing the tax liability from the withdrawal.
The benefits of rolling-over your RRIF distribution to AKFC
- You maintain ownership and control of your retirement account.
- You can continue making withdrawals throughout your lifetime.
- You can receive a tax exemption for the donated amount each year.
- If your family or financial circumstances change, your designation can be changed at any time.
We know meaningful change takes time, which is why we’ve been working in communities across Africa and Asia for decades—and will be there for generations to come with your support. As we look to the future, AKFC hopes to count on your support so that the next generation will be brighter than the last. Photo credit: Rich Townsend / AKFC
How to roll over your RRIF to AKFC
All it takes is speaking with your plan administrator to update your distribution designation to AKFC. In order to qualify for the tax exemption, the distribution must be directly transferred from your RRIF to AKFC.
Other considerations
Any decision you make with respect to giving a gift to AKFC in your will as part of your planned and legacy giving should be made in consultation with your financial advisor, tax advisor, and legal advisor.
Donors should also take the necessary steps to ensure that they have made adequate provision for their family, heirs, and other individuals requiring support after their demise.
We would welcome the opportunity to work with you, your family and your advisors if you wish to support AKFC through a gift in your will. We encourage you to engage in a discussion with us prior to finalizing your gift, to ensure that it is a gift that AKFC can accept as a Canadian charitable organization. From time to time, AKFC may have to decline gifts that are made without prior consultation.
