A Gift Annuity is an investment gift that allows you to support the Ontario SPCA's lifesaving work while increasing your retirement income and reducing income tax. Each day the Ontario SPCA rescues animals across the province from abuse and neglect. We then help these animals by supplying food, shelter, veterinary care and adoption services - giving them the second chance they desperately need.
How it works
In return for an investment gift to the Ontario SPCA, you will receive a fixed guaranteed lifetime annuity payment. Approximately 75 per cent of your gift will be issued to a life insurance company to fund your annuity, and the rest will be used to help save and protect animals. Most, if not the entire annuity, is tax-free.
You may also consider placing your Gift Annuity into an Endowment Fund to provide a lasting gift for animals in need. The principal is invested, and only the income is used for the Ontario SPCA's lifesaving work. You can honour your family, a special person or a pet that you love with a personally named Fund, or choose a designated Fund to support a specific purpose close to your heart. To learn more, click here.
You benefit by:
- Receiving a fixed guaranteed annuity payment,
- Reducing your Old Age Security claw back,
- Providing an opportunity to increase Government Guaranteed Income Supplements, and,
- Reducing income tax.
A number of gift annuity scenarios can be calculated for you, including the income tax effects on your gift. All we need to know is: whether the annuity will cover one or two people, your birthdate(s), the donation amount, the date you will make the gift, and the date you'd like to begin receiving payments. Payments can be deposited directly into your back account.
Gift Annuity example:
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Debbie, 75, has a $100,000 Guaranteed Investment Contract (GIC) coming due in two months. She was receiving $7000 per year (7 per cent) in interest payments and after paying $1,680 in tax she was able to keep $5,320. Debbie is upset because the current GIC renewal rates are 5 per cent and her income will be reduced to $3,800 after tax when she would like to see it increase.
Debbie decides to purchase an Ontario SPCA Gift Annuity that will gift her $8,000 tax-free per year, which more than doubles her payments. She is happy because she has more money and has paid less tax to enjoy her retirement. At the same time she has given the Ontario SCPA a gift of $25,000. |
Amount of Annuity
$100,000 Amount transferred to Ontario SPCA $25,000 Annual tax-free income $8,000 |
How to donate a Gift Annuity
For more information about giving a Gift Annuity, please contact: Meghan at 1-888-ONT-SPCA (668-7722) ext. 324 or msimpson@ospca.on.ca. Thank you for considering making this special commitment.
Note: For legal, tax or investment advice, please consult a lawyer or investment professional.
The Ontario SPCA's full legal name is "Ontario Society for the Prevention of Cruelty to Animals," and our charitable registration number is 889691044RR0002. If you would like to designate your gift to a specific Ontario SPCA Branch, please list the charitable registration number above and specify the Branch.
