This text is part of the special Philanthropy section
Still discreet a few years ago, planned donations are gaining popularity in Quebec, to the delight of charities. However, there are still some obstacles to overcome in order to completely catch up in this area.
There was a time, not so long ago, when Quebec came last in the list of the most charitable provinces in the country. In 2013, the lowest average donations were in La Belle Province ($264 per person/year), while Alberta particularly stood out for its generosity ($863 per person), according to figures communicated by Statistics Canada. Many observers explained this by the fact that English speakers tended to gravitate more naturally towards philanthropic giving than French speakers.
Since then, Quebec has quietly but surely gone back on track. “The culture of philanthropy has really taken off over the last 10 years in Quebec,” notes Simon Proulx-Pinard, CPA and managing partner at BGY Integrated Financial Services. Would we have suddenly been won over by a strong surge of benevolence? “In reality, Quebecers have always had their hearts on their sleeves,” nuance Mr. Proulx-Pinard. “Planned giving was less prevalent before, simply because people didn’t necessarily have assets. »
A movement that is growing
On the English side, wealth was accumulated much earlier. A notable difference which naturally had an impact on the development of philanthropy from one province to another. “In Quebec, we had families in business in the 1950s and 1970s. But the phenomenon has especially grown over the last 30 years,” continues Simon Proulx-Pinard. “We are reaching the first generation where there are increasingly significant transfers of wealth taking place. And inevitably, the culture of giving is also developing. »
It is undoubtedly no coincidence that the University of Sherbrooke (UdeS) launched its Great Campaign just a year ago, the most ambitious in its history, aiming to raise $250 million by 2028. Placed under the theme Choosing to change the future, the audacious fundraiser aims in particular to raise $60 million in planned donations, from bequests in wills to life insurance donations.
“Over the past ten years, there have been more and more planned gift programs set up by foundations in universities or hospitals,” notes Mr. Proulx-Pinard. “It’s a new vector that was little developed before. We see the potential, and we want to exploit it in the same way as what has been done in English-speaking Canada. I think this is a movement that will continue to grow. We are not yet mature, but there is good progress being made. »
Barriers to be removed
The notary and tax specialist Me Andrée-Anne Potvin, who founded the firm PNCF inc. in Montreal, has also noticed this wonderful outpouring of generosity among its customers. “We are seeing more and more bequests in which we are going to benefit a charitable organization,” she says. When I started practicing in the 2000s, I did not have particular or universal legacy gifts. But there has been an important change that has taken place in recent years in Quebec. Major assets were built up and the philanthropic desire followed. »
Although we are on the right track, there is still a long way to go to hope to catch up with the accumulated delay. While most planned gifts involve a legacy bequest, certain barriers remain in this area. “In Quebec, approximately 50% of the population does not have a will. It’s a notion that continues to frighten, particularly financially, when we think about the cost of visiting the notary,” laments Daniel H. Lanteigne, philanthropy consultant for the firm BNP Performance philanthropique.
There are several options on the table to remove this obstacle which hinders the planning of the transfer of wealth for the benefit of organizations. In the United States, the FreeWill platform offers, for example, the possibility of making a will online, free and quickly. “In English Canada, there are also foundations that offer this service on the Epilogue platform,” adds Mr. Lanteigne. “The foundations understood that the first obstacle to a testamentary bequest was not the donor himself, but quite simply his lack of comfort in making his will. »
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