The club this week announced they would not sell any tickets for the fifth-round clash and urged fans not to travel to Tannadice after supporters groups called for a boycott of the February 2 game.
The decision, and possible ramifications, was due to be discussed by the Scottish Football Association board today.
In a statement, Rangers chief executive Charles Green said: "The club was contacted by Dundee United requesting us to waive our rights to the share of the gate under cup competition rule 46(c), this was declined.
"It has been decided by the board that any proceeds from gate receipts due to the club will be donated to the Prince and Princess of Wales Hospice Brick by Brick Appeal and Erskine charities via the Rangers Charity Foundation."
Rangers fans groups were united in boycotting the cup tie after claiming United were an integral part of the decision to reject the newco club's application to join the Clydesdale Bank Premier League.
Ten of the 11 SPL clubs voted against Green's bid with Kilmarnock abstaining.
Many Rangers supporters had previously stayed away from Tannadice for a game in December 2009 after United charged an admission fee for a match that had been rescheduled after the initial fixture was abandoned at half-time.
Relations between Ibrox and Tannadice were also strained in February when United were not paid money due for their Scottish Cup clash in Govan, nine days before oldco Rangers went into administration.
The Tayside club were owed £66,000 when Rangers were consigned to liquidation, with Green later disputing whether the final instalment should be paid by his club or the SPL from retained prize money.
Earlier this week, when explaining the club's decision to refuse tickets, Green said: "Everyone at this club is dismayed at the actions of certain SPL clubs, which were actively engaged in trying to harm Rangers when we were in a perilous situation and we are acutely aware of their attitude to us."
Green said he felt not all clubs fell into this category, but added: "It is unsurprising too that there has been a reaction from our supporters to this particular fixture."
United reacted with "huge disappointment" to the original statement and "raised a number of related matters with the SFA".