In Quebec, the most generous donors to charitable organizations are aging and the younger generations do not always take over. To overcome this problem, foundations are increasingly relying on planned donations, also called bequests.
Christian Labelle and Benoit Laguë took advantage of this tool. They have planned that, once they both pass away, the vast majority of their inheritance will be given to the Fondation Sainte-Justine (FSJ).
“This is our afterlife project. We will help those who are starting their lives,” Mr. Laguë emphasizes during a telephone interview.
The couple has no children and the nieces and nephews are “not in need.” By discussing their shared values and what they wanted to do with their assets, they understood that they wanted to continue their commitment to this hospital institution that is dedicated to the care, teaching and research on children’s health.
“For us, children are truly a priority in society. Some are not fortunate enough to be healthy, so we hope that research will lead to eliminating certain diseases and allowing them to live normally,” says Mr. Labelle.
The planned gift, which is added to a few specific bequests, made their testamentary process “invigorating and full of pride.” “There may be a child currently in a daycare who, in 20 or 30 years, will be able to do research thanks to the amount we will have left. We will not know and neither will he. But I find it extraordinary and useful,” adds Mr. Laguë.
According to the two retirees, the Sainte-Justine Foundation creates strong ties with its donors and communicates a lot about its projects and achievements. Nathalie Gagnon, director of planned donations and legal advisor at the FSJ, is responsible for this liaison task.
“People who put us in their wills would have the luxury of changing their minds, but we want to bring them into our family and show them what we do well,” she says.
According to Mme Gagnon, 8% to 10% of donations received come from bequests. This proportion is increasing. The Foundation seeks to further encourage this type of donation, which is still little known.
“There is a big intergenerational transfer of wealth going on and hopefully charities can benefit from that,” the director says.
A fund in his name
Pierre Comtois ensured the continuity and even perpetuity of his philanthropic commitment by creating his own fund 15 years ago through the Foundation of Greater Montreal (FGM). The FGM manages 800 funds, representing assets of $450 million. It allows individuals to choose the organizations they wish to support. It takes care of the management of the assets invested there.
The Micheline and Pierre L. Comtois Fund contributes to about fifteen different causes in the areas of health, education, culture and social development. It also specifically gives money for research into muscular dystrophy, the disease that took his wife Micheline last year.
“It’s important to give back to society when you’ve had a good career,” judges Mr. Comtois. Philanthropy must develop further in Quebec. »
This former finance professional adds capital to his fund every year and an amount will be added upon his death. “They will give 3.5% of the fund’s capital on the 1er January of each year,” explains Mr. Comtois.
Despite this significant commitment, the latter will give the majority of his estate to his children and grandchildren. He points out that planned gifts can reduce the taxes paid by heirs.
Essential for organizations
FGM President and CEO Karel Mayrand believes that legacy bequests are crucial for the future of non-profit organizations in all areas. He notes that the generations following the baby boomers, with tighter budgets, are more punctual than regular in their generosity.
“If we don’t worry about it, simply through forgetfulness, the precious loyal donors will not have made a donation in their will. This risks creating a hole in the funding of organizations,” says Mr. Mayrand.
The Canadian Association of Gift Planners has launched the Will to Do campaign to raise public awareness of this issue. It aims to increase the proportion of Canadians who make bequests in their wills from 8% to 13%.
“People are asked: have you made your will? Have you made your mandate in case of incapacity? I think that more and more, we should ask a third thing: have you made your planned gift?” insists Mr. Mayrand.