Gift annuities allow you to make a substantial donation to the University, while at the same time providing you with virtually or entirely tax-free, guaranteed income. Depending on your age, you may also receive a charitable donation receipt in the year of the gift. The University takes on the job of investing and managing the donated funds for you.

"We don’t want the bother of worrying about how investments are doing - we’d rather spend time with the grandkids. We want to make a difference to the world that comes after us, both for our grandchildren and for Israel."
Mr. & Mrs. S. F., Montreal

How gift annuities work

You make a donation to the University, which uses the gift to buy an annuity that pays you a guaranteed income, either for a specified period of time or for life. Depending on your age, your income from the annuity is virtually or entirely tax free. This is because the government regards annuity payments, provided they total less than the amount paid for the annuity, as a return of capital, and therefore not subject to tax. Any portion received above the amount paid for the annuity would be subject to your personal rate of tax.

Here’s an example. Mr. J., age 80, gives a gift of $60,000. In return, the University pays him an income of $5,000 annually for life, which he receives tax free. Actuarially, Mr. J. is expected to live another nine years, for a total of $45,000 in annuity payments. Therefore his charitable donation is deemed to be $15,000, the difference between the amount paid for the annuity and the payments received. Should Mr. J. live beyond nine years, however, his annuity income remains tax free.