Ways to give
Retirement Account Giving
Many retirement schemes allow a direct charitable transfer, which can be among the most tax-efficient gifts available.
How this works
What it involves
Depending on where you live and the type of account you hold, you may be able to transfer funds directly from a retirement, pension or superannuation account to a charity.
Where this is available it is often unusually efficient. A direct transfer may not count as taxable income to you in the way a withdrawal would, and in some jurisdictions it can also satisfy a required minimum distribution.
The rules differ substantially between countries and between scheme types, and they change. What follows is the general mechanism — your scheme administrator and your adviser are the authorities on whether it applies to you.
Step by step
Confirm your scheme permits it
Ask your scheme administrator whether a direct qualified charitable transfer is available, and what conditions apply to your account type and age.
Take independent advice
Confirm the tax treatment with your own adviser before instructing anything. We cannot advise on this.
Request our details from us
Contact us and we will provide our full legal name, registered address and registration details in the format your administrator needs.
Instruct a direct transfer
The transfer must usually go directly from the scheme to the charity. Withdrawing the money first and then donating it typically loses the advantage entirely.
Tell us it is coming
Transfers from scheme administrators often arrive with no identifying information. Let us know so we can match, receipt and acknowledge your gift.
Questions
Common questions
Is this available where I live?
It depends on your country and the type of scheme you hold. Some jurisdictions have well-established mechanisms for direct charitable transfers from retirement accounts; others have none. Your scheme administrator will be able to tell you.
Can I withdraw the money and then donate it instead?
You can, but you will usually lose the tax advantage, because the withdrawal is typically treated as income to you. The benefit generally depends on the transfer going directly from the scheme to the charity.
Why do you need to know in advance?
Because transfers from scheme administrators frequently arrive with no donor information attached. Without a heads-up we may be unable to identify who the gift came from, receipt it properly or thank you.
Can you tell me whether this is a good idea for me?
No — we are not qualified to and would not attempt it. We can explain the mechanics of receiving the transfer. Everything about whether it suits your circumstances belongs with your own adviser.
Talk it through with us
We can explain how this works mechanically. For tax and legal questions, please take independent professional advice.