This text is part of the special Philanthropy section
When the time comes to plan a philanthropic gesture, accountants, tax specialists, notaries and other financial planners have an essential role to play with future donors. Within organizations, an ever-increasing number of experts also offer to provide valuable information.
Just because you let your heart speak doesn’t mean you shouldn’t act with your head. When it comes to philanthropy, the good old adage perfectly illustrates the importance of surrounding yourself and being informed when making the decision to plan a donation. As such, financial advisors (accountants, tax specialists, financial planners) and legal advisors (notaries, lawyers) must be able to answer the legitimate questions asked by anyone wishing to do something for the community.
Unfortunately, these experts are not always well trained to provide advice tailored to each potential donor. “I had a client recently who made a sale of a business and who realized afterwards, because he had not been informed in time, that he had missed the key period where he could have saved a lot of taxes so that he intended to make a donation,” testifies Chantal Thomas, who serves as senior director of Philantra and private foundations at Banque Nationale Trust.
Reflexes to develop
Active for 30 years in philanthropy, the expert is leading “a crusade” for better training for accountants, tax specialists, notaries and financial planners on all issues related to planned donations. “None of these professions have given space to this subject in their basic training,” laments Chantal Thomas. “Accountants could in particular receive courses to develop better reflexes regarding planned donations. Their practice would be enhanced and their clients would appreciate them more. »
General director of the Bas-Saint-Laurent–Gaspésie–Les Îles Community Foundation since 2017, Ronald Arsenault draws the same observation. “All these professionals have an important role to play for philanthropy to develop in Quebec. They must be key players in the emancipation of planned donations,” he confides. “This is why we offer them accredited training in our seminars on planned giving which give entitlement to CEUs [unités de formation continue]. »
A profitable collaboration
Since the foundation he heads highlighted the significant tax advantage that donating shares could represent, Ronald Arsenault has seen the difference. “We started to highlight it three to four years ago with our portfolio manager and our partners who did not have the reflex to offer it to their clients. And we have seen an exponential growth in these donations,” he explains. “The tax aspect is interesting, but the people who join it also enjoy giving. »
Beyond financial considerations, it is important that professionals carefully measure the effects of a planned donation, as well as the needs of the community. “Often, the donor will give to a cause that has touched them personally. But there are sometimes other priorities that must be explained to the donor, things that are not necessarily associated with their life journey,” explains Mr. Arsenault. Collaboration between professionals and organizations can thus prove profitable for everyone.
A reflection to accompany
More and more foundations are surrounding themselves with experts capable of answering questions, even the most technical, relating to planned donations. Their vocation is not to replace legal or financial advisors, but rather to ensure that donors have all the keys in hand when making their decision. It is a matter of supporting their thinking and facilitating all aspects of their philanthropic approach.
Very active in this area, the University of Sherbrooke has set up the Planned Donations Advisory Committee. “We want to be sure that we can give the best possible answers to our donors, particularly on more complex questions such as life insurance donations,” confides Julie Roy, responsible for philanthropic development for arts and culture as part of the Grande Campaign carried out at the University of Sherbrooke.
“In the university or hospital environment, organizations all already have an expert in planned donations,” continues M.me Roy. “But there is a growing trend towards the professionalization of the philanthropic management of foundations, particularly through the Canadian Association of Planned Giving Professionals (ACPDP). Even the smallest organizations can today provide answers or seek external resources to properly support their donors. »
This content was produced by the Special Publications team at Duty, relating to marketing. The writing of the Duty did not take part.