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A gift of residual interest is made when a donor transfers property to C.D. Howe Institute now but reserves a life interest in the property.

  • Donor has the use of the property during their lifetime.
  • Donor receives a donation receipt for the present value of the residual interest.
  • Gifts of residual interest can be undesignated or designated.

Benefits to the Donor

  • Use of the property for life.
  • Receive a charitable tax receipt for the net present value of the property when the gift is made (net present value is based on the anticipated number of years donor retains interest in the property, current fair market value and appropriate annual discount).
  • Claim charitable donations up to 75 per cent of your net income.  A five-year carry over on unused donation amounts is permitted.
  • Avoids probate. These types of gifts are less susceptible to being contested than a charitable bequest and provide privacy.