Strategic philanthropy goes beyond giving a donation to a charity. It is about defining your philanthropic strategy to have maximum impact to both the beneficiary and the donor (individual or corporate).

A philanthropic strategy is very personal. It is based on your values and goals while also considering local community needs. There are many charitable causes to give to in our community, from environmental causes, individuals with special needs, food security, to palliative care. There is no right answer when it comes to setting philanthropic goals. Some guiding questions include: What’s important to you? What causes matter to you or your family? Do you want to address one or multiple causes? 

After the philanthropic goals have been defined, the next step is to devise a plan of how to maximize the strategic benefit, both to the cause and to you. There are a lot of options to consider here, including gifts during your lifetime, legacy gifts, estate gifts, private foundations, donor advised funds or DAFs, and more.

Some things to consider to maximize benefits:

• Donating appreciated publicly-listed securities (mutual funds, ETFs, equities, etc.) ‘in-kind’ to a registered charity as any capital gains realized will not be taxable (except under alternative minimum tax or AMT calculations).
• There are potentially additional tax benefits for donations through a corporation.
• Using life insurance can provide a large donation with a relatively small cost.
• Strategically planning to make maximum use of the donation credit during higher income years.

To ensure you are taking advantage of relevant opportunities, contact me directly by phone or email to discuss in greater detail. I am also hosting a seminar later this month of August and I invite you to join for more information on how a philanthropic strategy can complement your investments.

Fraser Willson, CFP, CIM | Senior Wealth Advisor | CIBC Wood Gundy | Collingwood | Fraser.Willson@cibc.com | (647) 588-4344