Consider charities as part of your legacy gifting plan
About 12% of Canadians plan to bequest a legacy gift, recent survey finds
Whether you’re a childless senior, lifelong philanthropist or are passionate about supporting a specific cause, you may be considering including one or more charities or non-profits as beneficiaries in your will.
If so, you’re not alone. According to a recent survey, approximately 12 per cent of Canadians plan to bequest a legacy gift.
“Simply put, Canadians care deeply about those in need,” said Clare Levy, director of strategic communications and stakeholder relations for the Canadian Association of Gift Planners, the creators of WillPower.ca, a campaign designed to support Canadians in searching, discovering and connecting with causes that align with their values.
“So deeply that they would give a portion of all they’ve earned over a lifetime to create a future for someone in a way that will help solve social, economic, environmental issues that vexed them in life, and they want to see those issues rectified or advanced in the year after their death.”
Jean-Marc Mangin, president and CEO of Philanthropic Foundations Canada, a national charitable organization supporting a network of public and private national foundations, agrees. “Based on our experience working with philanthropists and new foundations, we see that Canadians desire to leave a legacy, give back to the community, and use the resources they have to make a better world for all.”
The first step in accomplishing these giving-back goals? Determining which organization (s) best align with your passions.
While this process can be quick and easy for many, Mangin says that, because there are so many charities, non-profits, causes and people in need, it’s also likely that narrowing down options may prove difficult.
“Many people know what their values, passions and interests are, but good intent is not sufficient for achieving good results in philanthropy. Doing the homework and inner reflection to become clear not only on your values, passions and interests, but also on some basic understanding of the key issues and organizations involved in making a difference in the field of your interest, is critical.”
Not only will due diligence on this front help you make decisions faster and more confidently, Mangin says it will also guide your relationship with grantee partners.
“The result is an alleviation of the power imbalance because the onus of learning and humility is put on the donor, which paves the way for a more trusting and rewarding relationship with funding partners.”
Determining whether your legacy gift will focus on a local or global need is also key. “As we have learned through COVID, a focus on both is needed,” he adds.
“We are all vulnerable until all of us are protected, and while there’s a danger is spreading yourself too thin, we have noticed that some donors focus on one issue both locally and globally, helping to make interesting connections and advance mutual learning.”
Once the organizations you’d like to support have been selected, Levy says that consulting with an estate planner or lawyer is the next vital step.
“Getting proper advice from these experts is crucial, and with our WillPower.ca campaign, we’re connecting Canadians with local estate advisers who know provincial legislation and estate planning needs that encompass financial and tax planning.”
Concerned about the amount or percentage of your legacy gift? Don’t be.
“The majority of charitable gifts in wills are left by Canadians of average means, and you may be surprised to find that, when all of your assets are realized, it’s likely that you will also have a tidy sum for support of both loved ones and your favourite causes,” she said.
“Leaving a gift to charity in your estate can be as easy as adding a clause to your will, simply by notifying your lawyer and requesting they update it. It’s never too late to make your wishes known.”
Finally, Levy suggests having a conversation with your loved ones about these decisions, as well.
“Make the process about celebrating who you are, the values you hold, and the life you lead. This will not only ensure that your family supports your philanthropic decisions long after you’ve passed, but involving your family means they can continue your relationship with your chosen cause, as well.”
Bottom line: Find the organizations doing the work you believe in most, and then put your money where your heart is.
“I think it’s important to note that the word ‘philanthropy’ comes from the ancient Greek and means ‘love of humanity,’ ” Mangin said. “Philanthropy provides oxygen for action and restoring hope, and we believe it is an essential tool for our society to be able to address our multi-faceted, systemic challenges.”