There are many good reasons for charitable giving. The top three reasons why we give, according to the Canadian Centre for Philanthropy, are:
• Compassion for a cause we personally believe in;
• We have been personally affected or know someone who has been affected by the cause the organization supports;
• We feel we owe something to our community.
The opportunity to contribute to something worthwhile doesn’t go unrewarded. The tax benefits to you and to your estate can transform your charitable impulses into “planned giving” strategies in your tax and estate planning.
When people think of leaving a legacy, many first consider creating a private foundation. Private foundations bring with them a certain level of prestige and provide donors with total and private control. But the costs are high and some feel these funds could be reallocated into charitable means.
For many BC residents, a donor-advised fund is an attractive alternative. With this option, you retain a strong influence on how your charitable gifts are used, but free yourself from significant costs.
Donor-advised funds are established by an individual, couple or family. They provide a lower-cost alternative to setting up and managing a private family foundation.
There are three simple steps in the process:
1. The donation(s) is made to the donor-advised fund (DAF) and a charitable tax receipt is issued.
2. The donation is invested in the DAF account according to the investment strategy, and a portion of the DAF is distributed annually for charitable giving purposes, with the balance remaining invested.
3. The donor determines which charity receives the distribution while not having to worry about the costs and operational responsibility of running a foundation.
For more information, visit www.millswealth.ca
Chris will be happy to answer any questions or provide a private consultation.
You can reach Chris at Raymond James Ltd 604-659-8061 or email firstname.lastname@example.org
Chris is pleased to provide services throughout the BC Lower Mainland and Vancouver Island.
DISCLAIMER: Chris Mills is a financial advisor with Raymond James Ltd. The views of the author do not necessarily reflect those of Raymond James. This article is for information only. Raymond James Ltd., member — Canadian Investor Protection Fund.