Giving Options

Ontario Trust for Student Support (OTSS)

The Ontario Trust for Student Support (OTSS) is a gift-matching program created by the Government of Ontario. All donations made to OTSS-endowed scholarships are matched, thus doubling the size of the donation. This initiative encourages individuals and organizations to contribute to permanent endowment funds that assist deserving and motivated Ontario students in financial need. The investment income generated by these funds constitutes a long-term source of funding for scholarships and bursaries.

To talk about direct giving options or to establish a fund at the Faculty of Medicine please contact at 613-562-5800 x.8867.

Gifts of Publicly-Traded Securities

Current federal legislation in Canada has eliminated capital gains tax on gifts made to registered charities of publicly-traded securities, mutual funds and bonds. When making this type of gift, you must transfer the securities to the University of Ottawa: the donation will not qualify for the capital‑gain exemption if the shares are first sold and the cash proceeds then given to the University.

Considerations regarding gifts of securities

You make an irrevocable gift, and benefit from excellent tax incentives.

The charitable donation receipt for income tax purposes reflects the value of the shares on the day they are transferred to the University of Ottawa.

If your charitable donation tax credits exceed the standard 75% of your net income, you may carry the excess tax credit forward for up to five years.

You can support University of Ottawa priorities that correspond to your interests, such as student aid, building projects, programs, research or academic chairs.

Example		Sell Shares, Donate Cash	Donate Shares
	Current value of shares	$10,000	$10,000
	Initial cost of shares	$ 4,000	$ 4,000
	Capital gain ($10,000 less $4,000)	$ 6,000	$ 6,000
	Taxable portion of capital gain	$ 3,000 (50%)	$ 0 (0%)
	Tax owing on capital gain (assuming a marginal rate of 48%)	$ 1,440	$ 0
	Tax credit for value of gift (at 48.2%)	$ 4,820	$ 4,820
	Net tax savings (tax credit, less tax owing on capital gain)	$ 3,380	$ 4,820
	True cost of gift	$ 6,620	$ 5,180
	Net tax savings achieved by donating shares as opposed to donating cash proceeds	$ 0	$ 1,440

N.B.: This example is for information only. Please consult your financial or legal advisor when planning the tax-smart gift that best corresponds to your personal situation.

A gift of securities is a quick and convenient way to make a donation to the University of Ottawa.

To make a gift of securities, please complete our donation form (available in PDF format) and send it by mail or facsimile to:

University of Ottawa, Development Office
190 Laurier Avenue East, Ottawa ON K1N 6N5
Facsimile: 613-562-5127

For more information, please contact Maurice Prévost, telephone 613-562-5800 extension 8758, email maurice.prevost@uottawa.ca.

Bequests

A bequest is a gift made through a will; it may include cash, marketable securities, closely held stocks, real estate, or tangible property. Bequests are one of the most common types of planned gift that the University of Ottawa receives from individuals.

There are several types of bequests to choose from.

Specific Bequest

You designate a fixed‑dollar amount or specific property to be given to the University of Ottawa.

Residual or proportional bequest

You designate either your entire estate or a percentage of your estate, after other specific bequests are distributed. The advantage of designating a portion of your estate to be given to the University of Ottawa is that the size of the bequest is automatically adjusted as your estate increases or decreases over the years.

Contingent bequest

The University of Ottawa is given a bequest only in the event of the death of the primary beneficiary named in the will.

Testamentary trust

A testamentary trust can be created as a provision of your will, in order to ensure long‑term fulfillment of your wishes. A testamentary trust allows you to design a trust that will provide for the ongoing needs of your spouse and family, while still retaining the capital required for a legacy to the University of Ottawa.

Considerations regarding bequests

You enhance the value of your estate, since bequests allow donors to minimize federal and provincial estate taxes.

Bequests allow individuals to make much larger gifts than they could during their lifetimes.

Since a bequest is revocable, you remain in control of your finances.

Your estate may claim gifts in the year of death equal to 100% of your net income in that year and the preceding year.

You can support University of Ottawa priorities that correspond to your interests, such as student aid, building projects, programs, research or academic chairs.

There is no minimum amount for bequests.

The University of Ottawa is pleased to assist you and your legal counsel by providing sample wording that will ensure that the University can accept your gift as you intended.

Gifts of Retirement Plans

After your death, the amount of a retirement plan such as a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) may be transferred to your surviving spouse tax‑free. When your spouse dies, however, the assets remaining in the plan are taxable: they are subject not only to income tax, but also to federal and provincial estate taxes. Although you may have wanted your heirs to receive all the assets remaining in your retirement plan, income tax and estate taxes could reduce the value of these assets by nearly 50%, leaving your loved ones with only a fraction of what you intended.

Rather than see your savings diminished by taxes, you may wish to consider donating all or a part of your retirement plan. Assets remaining in retirement plans and earmarked for charitable donation are still included in your taxable estate, but are fully deductible from it as charitable donations.

Since retirement plans are taxable in the hands of anyone other than a spouse or dependent child, this type of gift is highly appropriate for single or widowed individuals without dependents.

Retirement plans become fully taxable at death, with nearly 50% of the amount of the plan being consumed in taxes. Therefore, instead of providing for the government, you could donate all or part of your retirement plan, and the charitable donation tax credit could offset tax on the proceeds.

Your estate will receive a charitable donation receipt for income tax purposes in the year of death.

Considerations regarding gifts of retirement plans

You are able to make a larger gift than would otherwise be possible.

You have the use of the retirement plan while you are alive.

Since the gift of a retirement plan is revocable, you remain in control of your finances.
You can support University of Ottawa priorities that correspond to your interests, such as student aid, building projects, programs, research or academic chairs.

Gifts of Life Insurance

A gift of life insurance can have a far greater impact than you might think. A relatively small effort today may one day bring considerable help to the University of Ottawa. There are several ways of making a gift through life insurance.

Surrendering an existing policy

Often, individuals own life insurance policies that they purchased for financial security reasons when they were younger. Circumstances may have changed so that the life insurance policy is no longer needed. If this is the case, the ownership of the existing life insurance policy can be transferred to the University of Ottawa. You will receive a charitable donation receipt for income tax purposes for the cash surrender value of the policy at the time you make your donation. If premiums are still being paid on the policy, you will receive additional tax receipts for any future premiums you pay.

Purchasing a new policy

This is a simple way to make a significant gift to the University of Ottawa for a relatively small investment. You can purchase a new life insurance policy and name the University of Ottawa as owner and beneficiary. You will receive a tax receipt for the premiums you pay each year, and the University will receive the proceeds of the policy on your death and will use the funds to support one or more priorities that are most important to you.

Designating the University of Ottawa as beneficiary of a policy

You can name the University of Ottawa as the beneficiary of a new or existing life insurance policy. On your death, the University of Ottawa will receive the proceeds of the policy, and your estate will receive a charitable donation receipt for income tax purposes.

Considerations regarding gifts of life insurance

A gift of life insurance may allow you to make a larger gift than you could make from your current disposable income.

The University of Ottawa issues charitable donation receipts for income tax purposes to you, for premiums you pay on policies naming the University as the owner.

Your gift will not be reduced by taxes, probate fees or administration costs .

There is no minimum amount for gifts of life insurance.
You can support University of Ottawa priorities that correspond to your interests, such as student aid, building projects, programs, research or academic chairs.

Gifts of (Canadian) Charitable Remainder

With a charitable remainder trust, you can make a significant donation of capital assets, which are held by a bank or trust company, and from which you continue to receive the income. You will receive an immediate charitable donation receipt for income tax purposes for the current value of the assets. On death, the assets are transferred to the University of Ottawa to support University priorities that correspond to your interests.

A charitable remainder trust can also be established through a bequest. In this case, most often the assets are used to provide for the needs of a surviving spouse or other heir during their lifetime and, upon their death, the assets are transferred to the University of Ottawa.

Considerations regarding gifts of charitable remainder trusts

You will receive an immediate charitable donation receipt for income tax purposes.

If your charitable donations exceed the standard 75% of your net income, you can carry the excess tax credit forward for up to five years.

Although there is no set amount for a charitable remainder trust, a minimum value of $150,000 in assets is often suggested.

You can support University of Ottawa priorities that correspond to your interests, such as student aid, building projects, programs, research or academic chairs.

Disclaimer

The information provided above is general in nature, does not constitute legal or financial advice, and should not be relied on as a substitute for professional advice. We strongly encourage you to seek professional, legal, estate planning and financial advice before deciding on a course of action.