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Family Philanthropy
A recent study revealed that 85% of us identified ourselves as highly motivated towards philanthropy. The same study revealed that 82% are prepared to give more to their favorite charity, but did not know of the best way to go about maximizing their donation.
Our primary motivation in giving continues to be benevolence as we recognize we share responsibility for the quality of life in our community, but we also desire to be more personally involved in the giving process. We know that there are tax and estate benefits when we are philanthropic and we want to better understand them.
Philanthropic planning means positioning philanthropy within the context of your overall financial plan. It is generally recognized, that before philanthropy will play a meaningful role in the estate and financial plans of families they must first identify available resources that can be allocated to philanthropy.
#1 “Giving while Living” Analysis (Living Legacy) - This analysis is designed to assist a family in determining if there are available resources to fund their charitable interest. The analysis quantifies the financial impact (if any) on a family if they have a desire of increasing their current annual giving. We typically make our charitable donations by writing a cheque or donating cash. Due to recent favourable tax legislation, the donation of assets, particularly at the time of a sale can decrease the amount of taxes paid, or increase the amount received by charity. The analysis will recommend the most tax efficient method of funding your charitable interests.
#2 “Estate Tax & Philanthropy” Analysis (Leaving Legacy) - This analysis is designed to assist a family in determining their current and future estate tax liabilities. The analysis quantifies the estate errosion due to taxes and illustrates the impact on your estate of including a charitable gift in your estate to eliminate the estate taxes - in effect, directing money that would be lost in taxes to your favourite charity.
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