Have you ever considered a giving plan?

(J.M.) WHAT IS A GIVING PLAN?

(S.G.) Giving back to your community can look different for everyone. A planned approach is one way to incorporate financial, tax, and even estate planning into a person’s charitable giving. A giving plan maps out a person’s approach to charitable giving, putting it in writing for implementation today or in the future, perhaps combined with a business succession or sale or within a will or estate plan.

Abundance Canada is a public foundation that works with people who have reached a stage where they want to create a giving plan. Each plan is customized to fit the individual’s personal circumstances to help them achieve their charitable goals.

WHAT IS A PUBLIC FOUNDATION?

As a public foundation, Abundance Canada is a registered charity that can provide grants to any qualified donee in Canada. We assist our clients in creating their unique giving plans. Most of our clients are in situations or stages of their lives where they have assets or income they want to share for the benefit of others. We offer donor-advised funds (DAFs), which allow our clients to develop a customized giving plan covering what they donate, when they donate, and which charities they want to support.

Often, clients come to us when they are experiencing a significant tax event, such as the sale of a business or farm, and they want to make a significant donation to help offset some of the income tax implications. They want to match the donation receipt with the taxable event but might not know which charities they want to support or spread that support over several years. A donor-advised fund offers the perfect solution for this scenario.

We work with our clients and anyone else who should be involved in developing and implementing the giving plan. This can include financial planners, accountants, lawyers, and farm succession specialists. Together, we develop a plan to help our clients achieve their charitable goals in the most tax-efficient manner.

WHEN DOES IT MAKE SENSE TO MAKE A GIVING PLAN?

While everyone’s circumstances are unique, there are three common scenarios in which a planned approach to charitable giving makes sense.

Giving while living – for those in a position to share their existing wealth, a plan can be created to support their recommended charities over time or perhaps for a specific project. In this situation, a client can see the impact of their donation during their lifetime.

End-of-life giving – donations can be made to a donor-advised fund as part of a will or estate plan. Abundance Canada will help clients develop the plan during their lifetime and then work with their recommended advisors to implement the plan when the donation is realized.

Significant income event – clients who find themselves in a situation where they will realize a significant amount of income in a certain year, such as the sale of a business or farm. Matching the donation receipt with this high-income event might generate significant tax savings. We can work alongside their professional advisors to develop and implement a customized plan to achieve their charitable goals.

WHEN DOES IT MAKE SENSE TO MAKE A GIVING PLAN?

Most of our clients have a good idea of which causes they want to support.

If people are unsure where to give, we suggest they consider causes and organizations they understand and appreciate. There might be specific areas of interest, such as health and education. Perhaps they grew up or currently reside in a rural area. An agricultural association, youth organizations, or groups that address food insecurity might be considered. With over 85,000 registered charities in Canada, the options might seem endless, so focusing on areas of personal interest might be a good starting point.

Volunteering and giving the gift of time can also make a significant difference. Giving plans are a great way to provide financial support, but everyone can give in their own way. •