Wanting to make a donation to a cause or organization that is close to our hearts after your death is very noble. How can we ensure that this last wish is respected? Notary, tax specialist, financial planner, trust manager and senior advisor at Desjardins Wealth Management, Caroline Marion covers the issue.
Determine the cause
From the outset, the specialist believes that the most important thing is to think about the causes that are important to you. You should strive to be as specific as possible so that your money really goes where you want it to. Prevention, help for families, research, recovery… What do you really want your money to be used for? “I once saw someone indicate that they wanted to donate to cancer. Firstly, we cannot donate to cancer, we donate to an organization. Then you have to target. If you love cats, it may be better to find an organization whose mission is to take care of this animal than to go there in general,” explains Caroline Marion.
PHOTO NORMAND HUBERDEAU, PROVIDED BY DESJARDINS WEALTH MANAGEMENT
Caroline Marion is a notary, tax specialist, financial planner, fiduciary manager and senior advisor at Desjardins Wealth Management.
What is your capacity to give?
It doesn’t take a fortune to donate and any amount over $20 is eligible for a tax receipt. “Governments do not have the financial capacity to help all causes, but for a donation of $500, they grant, for a resident of Quebec, a tax credit of $209.70. Basically, we subsidize almost half of what you will give. » Caroline Marion, however, asks her clients if they really want to wait until they die before making a donation. “You have to be aware that you won’t see the benefits. You can give a small amount today and more when you die. »
It is important to assess one’s ability to give without having a negative effect on one’s retirement, for example. “If we really want to have a clear picture, it is good to be accompanied by a financial planner or a tax specialist, in order to know whether it is better, depending on your situation, to give during your lifetime or upon your death. The observation is that many people realize that they can give more than they think because of the tax advantages. »
Contact the organization
Once you have completed your reflection, the expert recommends contacting the organization(s) in question. At this stage, your decision does not have to be final. To be certain that these are recognized organizations, the Revenu Québec and Canada Revenue Agency sites are very useful resources which list those which are indeed registered. “Most organizations already have donation structures in place. By talking with them, you will be able to ensure the percentage of your donation that really goes to the cause in question. It’s also a way to know if they are able to receive your donation and the limits of what they can accept,” advises the specialist. Indeed, if you wish to give goods instead of money, you must ensure that they do not become a burden. “Donating artwork, for example, can be a headache and storage costs can have an impact on the organization’s finances. These are aspects to think about. »
Will or not
Will, life insurance policy, gift of property, philanthropic fund… What is the most appropriate way to make a posthumous donation? Here again, according to Caroline Marion’s experience, it is the organization that will be best able to guide you in order to establish the most profitable way of proceeding. If you opt for a will, the specialist recommends favoring the bequest in a specific capacity. “This way, the organization is exempt from estate responsibilities such as debts and has fewer audits to perform. » She also suggests specifying an amount rather than a percentage to avoid back-and-forths between the estate and the beneficiary of the gift.