In our view, success in business and in life can be measured by the ability to make a positive difference in the lives of others. Many of the wealth-holders that we support have also come to realize that their personal financial success and comfort, while nice to have, is not what ultimately gives their life meaning.
We have the pleasure of helping those individuals with big hearts contemplate these issues and move from a perspective of “personal success” to “personal significance”.
Avenues for giving
We help clients explore various avenues for giving while expanding the legacy (both financial & non-financial) that they can leave to future generations and their community.
One such tool we promote is the Donor Advised Fund. A donor advised fund is like a mini-foundation that is established for charitable giving purposes. A Donor Advised Fund is essentially a sub-account within a larger foundation. This provides many of the same features and tax planning benefits of a private charitable foundation, but with less complexity, cost and infrastructure required to run and maintain a private foundation.
Many clients like this approach as it offers a convenient method of making meaningful charitable contributions (perhaps for tax-planning purposes) without the need to distribute the entire capital sum to charity immediately. Instead, they can retain control over how the funds are managed and distribute the funds more gradually over their lifetime.
How does a Donor Advised Fund work?
Contributions to the Donor Advised Fund are irrevocable and receive a charitable tax receipt in the year they are made. Initial gifts to the fund can be made in a variety of forms, including cash, securities and sometimes life insurance. CRA requires that a minimum of 3.5% of the fund must be distributed annually. Each year, the Donor will advise the foundation on the amount and allocation of their desired grants to one or more charities of their choice. In this fashion, the Donor Advised Fund provides a compelling teaching tool to engage younger generations in philanthropy and to teach them about responsible wealth stewardship. Grants can be made in the name of the donor family (ie. Smith Family Charitable Fund) or they can be distributed anonymously if preferred.
A wealth of resources at your disposal
Whether you wish to give $250,000 or $20 million, we have a team of specialized professionals standing by ready to provide in-depth guidance on how to make the most of your philanthropic gifts. We can provide you with the expertise and experience necessary to establish your own Family Foundation, a Donor Advised Fund, or perhaps something in between. Please don’t hesitate to contact us for a confidential conversation on how we can assist you.
This article was prepared by David Mason who is a mutual fund representative with Investia Financial Services Inc. This is not an official publication of Investia Financial Services Inc. The views (including any recommendations) expressed in this article are those of the author alone and are not necessarily those of Investia Financial Services Inc.
