New federal legislation allows ‘carry forward’ and ‘roll over’ provisions for RDSP’s

Great news for those of you who are considering opening, or already have, an RDSP! This note just in from the folks at PLAN who are organizing RDSP information sessions across the country. (CMHA VB is a local partner.)


On March 4, 2010, the Government of Canada, through its Budget 2010, announced two enhancements to the Registered Disability Savings Plan (RDSP), grant and bond. We are pleased to advise that the legislation to enact these changes received Royal Assent on December 15, 2010. The ‘carry forward’ and ‘roll over’ provisions will provide Canadians with disabilities and their families with more flexibility when saving for the future.

Please find below some questions and answers that we hope will assist you in helping your members and clients to understand and benefit from these new provisions.



What is the carry forward?

As people with disabilities and their families may not be able to contribute regularly to their RDSPs, the carry forward allows beneficiaries to claim unused grant and bond entitlements for a 10-year period (starting from 2008, the year RDSPs became available). In order to claim unused grant and bond entitlements, the beneficiary must be eligible to receive the grant and bond (at the time of the claim, the beneficiary must be aged 49 or under).

Grant and bond entitlements are based on the beneficiary's family income. The grant amount also depends on how much is contributed to the RDSP. For unused grant entitlements, the matching grant rate will be the same as what would have applied in the year the entitlement was earned.

When does the carry forward come into effect?

The carry forward comes into effect on January 1, 2011.

As it will take time to develop the electronic system to process these transactions, the functionality to administer the carry forward will not be available immediately. Therefore, 2011 carry forward entitlements are expected to be paid into RDSPs in early 2012.

Is there a special application form for the carry forward?

Whether an individual already has an RDSP, or opens an RDSP in January 2011 or thereafter, a special application form will not be required for the carry forward. Grant and bond entitlements will be calculated automatically.

What is the roll over?

The proceeds (or a portion thereof) from a deceased individual’s Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), and Registered Pension Plan (RPP) can be rolled over, tax free, into the RDSP of a financially dependent child or grandchild with a disability.

The amount of money rolled over into an RDSP will form part of the $200,000 lifetime contribution limit. For example, if there is already $50,000 in private contributions in an RDSP, the amount rolled over from an RRSP, RRIF and RPP cannot exceed $150,000.

A matching grant will not be paid on RRSP, RRIF and RPP contributions.



When does the roll over come into effect?

The roll over comes into effect July 2011. This measure will be effective for individuals who pass away after 2007.

BACKGROUNDER

The RDSP is a long-term savings plan that helps people with disabilities, and their families, save for the future. To be eligible, a person must be:

• under the age of 60;

• a Canadian resident with a social insurance number; and

• eligible for the Disability Tax Credit (Disability Amount)

There is no annual contribution limit to the RDSP, but there is a lifetime contribution limit of $200,000.

To help people save, the Government of Canada will pay a matching grant of up to $3,500 a year, depending on the amount contributed and the beneficiary’s family income. There is a lifetime limit of $70,000 in grant payments.

The Government of Canada will also pay a bond of up to $1,000 a year into RDSPs of low- and modest-income Canadians. There is a lifetime limit of $20,000 in bond payments. No contribution is necessary to receive the bond.

Grants and bonds will be paid until the year the beneficiary turns 49.

For more information about the RDSP, grant and bond, please visit www.disabilitysavings.gc.ca or call

1 800 O-Canada (1 800-622-6232). TTY users may call 1-800-926-9105. A detailed brochure – available in alternate formats such as large print, Braille, audio cassette, CD, DAISY, and computer diskette – is also available by calling these numbers.

Should you wish to make an inquiry by e-mail, please send your message to

rdsp-reei@hrsdc-rhdsc.gc.ca.

Strategic Planning - Part 2

SCORE ANALYSIS - Strength, Challenges. Opportunities, Risks and Environment

The board of directors met for 2 planning session in mid March to try and formulate the basis of our plan. We chose Debbi Salmonsen from Honu Consulting to lead us through the process.

For our next step in our planning process, we wanted to put all the information together into some usable information. In general we knew we wanted to build on our strengths, minimize our risks and grow the organization. So, our facilitator chose to lead us through a SCORE analysis done in a brainstorming session format.

Here are our top 3 in each category:

Strengths:

1. We have a variety of successful programs that are known for their innovation and impact.
2. Passionate leadership by board, staff, management and volunteers.
3. History of being responsible, accountable and effective.

Challenges:

1. Discontinuation over 3 years of United Way Member agency funding. We will require $140,000 of new donations.
2. Lack of awareness about our Branch programs
3. Growing need for services with a lack of new money to pay for them

Opportunities:

1. Continue to grow and develop our inCREDable program series (Child and Youth programs).
2. Develop cross cultural competencies to better serve Vancouver and Burnaby's diverse populations
3. Utilize new technologies (social media) to reach out to more people.

Risks:

1. Reliance on government funding during tough economic times
2. Lack of space in office to grow
3. Loosing staff and volunteers

Environment:

1. With the development of the Canadian Mental Health Commission there is a growing awareness in Canada about the need to fight stigma and support those living with a mental illness.
2. There is an economic recession and fundraising is more challenging.
3. 2009 election and 2010 Olympics are shining a spotlight on Vancouver.

Up next: our key priorities

Strategic Planning - Part 1

Strategic Planning begins by trying to get as many voices as possible to share their views about the organization.

This process can be long and extensive or more brief and focussed. Our branch had undergone a very extensive process for our 2005 -2008 strategic plan. So, we decided to build on that and use a more focussed but broad approach.

Service User Surveys distributed through all programs and services. 65 surveys returned.

Staff Survyes. 25 surveys returned.

Participant Advisory Committee input and oversight. (CMHA VB has a participant advisory committee that is made up of service users and acts to inform the leadership of consumer experience, needs, wants and to ensure consumer voice is at the decision making table of the organization.

Board Member research of a complete environmental scan.

Broad consultation with funders and donors about current services. Ongoing.

Leadership team input and review

So, that is a whole lot of data and opinions. The next step was engaging in a SCORE analysis. Strengths, Challenges, Opportunities, Risks and Enviornment. Stayed tuned to hear about how we did.

Moving an Organization Forward

Every non-profit either has, or should have a strategic plan. This plan outlines the vision of the organization and the goals, objectives and tasks to get there.

This past Spring, our Branch began the process of developping our new 3 year strategic plan. This process led by our Board of Directors, sets the stage for our growth and will be the basis of our work and decision making.

Over the next several blog posts, I would like to share the ins and outs, of strategic planning and give everyone a head's up as to where we are going. I hope you enjoy and please don't hesitate to share your comments about the plan. All input is valuable as we are a community organization and we want to hear from you.

Sincerely,

Rebecca Shields
Executive Director

The CMHA VB Board of Directors

Top Left to Right: Jane O'Connor, Merrill Sheppard, Pervez Siddiqui, Isabella Mori

Front: Julia Raudzus and Rebecca Shields (ED)

Absent: Robert Lydon, Pamela Verma, Shannon Higginson