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Charitable Gift Annuities

Make a substantial donation while drawing a steady retirement income.

         

Who is this type of giving for?

Donors aged 65 or older with a conservative investor profile.

        

Donor benefits

  • Maintain or increase your annual income.
  • Receive a guaranteed income for a specified period or for the rest of your (or your spouse’s) life.
  • Payments largely or entirely tax free.
  • No management required.
  • Tax receipt for the contribution portion.
  • Satisfaction of seeing the immediate impact of your donation.
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Additional information

Charitable gift annuities let you continue to receive a comfortable, pre-determined retirement income while making a considerable donation to the HEC Montréal Foundation.

As part of the annuity agreement, you will make a lump-sum payment to the HEC Montréal Foundation, which will then see to it that HEC Montréal uses a portion of this amount to buy an annuity from an insurance or trust company on your behalf or on behalf of the person you designate.

The Canada Revenue Agency limits the amount of money used to purchase the annuity to 80% of your contribution.

The difference between the initial principal you pay and the cost of purchasing the annuity constitutes your donation, for which you will receive a charitable tax receipt.

Various types of annuities are available, including life annuities (with or without a guaranteed period and with or without guaranteed principal), joint annuities and fixed annuities.

One portion of the annuity payment is considered to be a repayment of principal and is therefore non-taxable. Only the other earnings-related portion is subject to tax.

The after-tax income resulting from this strategy is generally higher than that of a strict fixed-income investment portfolio. However, the amount of the annuity is set for life, and donors can no longer draw on the invested principal. Returns will vary depending on the individual’s age and state of health at the time the annuity is purchased.


The HEC Montréal Foundation does not provide financial or legal advice. The examples used here are for illustrative purposes only. Please consult your financial or legal advisor to ensure that the selected donation option takes into account your specific circumstances as well as all applicable legal and tax implications.

Questions about planned giving?

Contact :

Mireille Lafond

Mireille Lafond HEC 1979
Major and Planned Gifts Advisor

mireille-c.lafond@hec.ca
514-340-7735

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