This text is part of the special section Philanthropy
There is a third way besides regular giving and occasional giving: planned giving, which can take several forms.
This third way is unfortunately less well known. The Canadian Association of Gift Planners (CAGP) has a dual mission. “First of all, it’s a place for our members to meet and talk,” explains Heather Powers, Chair of the CAGP Board of Directors. Secondly, it is also an educational tool for financial management professionals who are not familiar with planned giving. »
CAPDP currently has approximately 900 members across Canada. Who are they ? “Financial planners, lawyers, notaries, accountants, financial institution and insurance company advisers,” says Heather Powers, “in short, anyone called upon by their work to offer their clients financial advice, and who are familiar with planned giving. »
But you don’t pretend to be a professional in planned giving. You have to know all the workings, in particular the tax implications, before you can properly advise a client and potential donor. “And you also need a lot of tact,” says Ms.me Powers, because it’s not always easy to broach the subject. On the one hand, because he often evokes death, a delicate subject if there ever was one. On the other hand, for the majority of people, the accumulated assets must first be used to protect the family. It is then necessary to convince these people that the planned gift in no way jeopardizes the well-being of their family and that the two can be complementary. »
Types of planned giving
The best known and therefore the most widespread planned gift is the gift by will. In this case, the donor indicates in his will the sum he wishes to bequeath upon his death to the charity of his choice. You can bequeath not only a sum of money, but also other assets, such as real estate, a financial vehicle such as an RRSP or a TFSA, or even shares of companies listed on the stock exchange.
The choice of assets to bequeath may, however, have tax consequences. For example, the sale of a principal residence is not considered a capital gain. The same goes for the bequest of this same residence. On the other hand, a secondary residence, or any other property where the owner does not reside, is a capital gain, and therefore taxable.
Another example: the bequest of shares. When a donor bequeaths shares, during his lifetime or by will, the tax authorities consider that the shares have been transferred to the charity, which then becomes the owner. There is therefore no sale of shares, and therefore no capital gain.
There are other planned gifts, such as giving through life insurance, where the policyholder lists the charity as the beneficiary. A trust can also be set up to act as a philanthropic agent. “That’s why I strongly recommend that donors do their homework and take advantage of the advice of a gift planning professional before making their choice,” says Heather Powers.
And when it comes to planned giving, how does Quebec compare with the rest of Canada? “Impossible to say, replies Heather Powers, because there is currently no data on planned giving. All we know is that the average of philanthropic donations is higher in Canada than in Quebec. Why ? Maybe Quebecers prefer informal donations? As for the generosity of each other, it is impossible to measure it. »
The will to do
CAGP is launching a new planned giving awareness campaign this spring. It is obviously aimed at financial management professionals, potential donors, but also the general public. Lucille Grimard, a volunteer with CAPDP, is responsible for the Francophone campaign.
“This awareness campaign follows on from the previous campaign called A Legacy to Share,” says Lucille Grimard. The campaign is called in English Willpower. We first had to translate this title into French, and our choice fell on The will to do, which is based on a play on words, but which represents the concept of “willpower”. »
In addition, the The Will to Do campaign is taking new paths. “Our old campaigns were essentially based on traditional media,” continues Lucille Grimard. But this time, we are turning more to the Internet. Indeed, CAGP has created a website (willtodo.ca) which is packed with information about planned giving, like where to find a gift planner, and even includes a bequest calculator.
“The emphasis is on the bequest,” says Ms.me Grimaud. Currently, in Canada as in Quebec, bequests represent only 5% of all philanthropic donations. It is therefore necessary to start by making this type of donation known so that people can become familiar with the question and possibly take action. »
In the eyes of Heather Powers, the bequest represents “the last gesture of generosity that one can make after one’s death. It is also a way of bearing witness to who we have been and to the values that have guided our lives”.