The value of having a strategic charitable giving plan in place

“Do whatever you think is right with it.” That was the instruction David “Sandy” Gottesman left for his wife, Dr. Ruth Gottesman, along with a stock portfolio worth billions.

Initially overwhelmed by her late husband’s bequest, Dr. Gottesman did nothing with her newfound wealth for two years, but at the urging of her children she finally made a decision.

In 2024, she gifted US$1 billion to the Albert Einstein College of Medicine in the Bronx, New York—an institution she’s been involved with since 1968, first as faculty, then on the board of trustees and currently as chair. The Gottesmans’ gift will cover tuition for all students in perpetuity.

There is a lot that’s “right” about this story of giving. Indeed, it’s an example of philanthropy doing exactly what it should: contributing to an institution important to the benefactors and the greater community. The United States needs doctors, and free medical school tuition offers significant opportunity while reducing the debt burden on students in the Bronx. It’s a beautiful legacy. Still, it left me thinking about the value of having a strategic giving plan.

A case for planned giving

Planned giving is exactly what it sounds like: making a plan now for a monetary gift in the future—often, but not always, after death.

A study commissioned by the Will Power campaign found the number of Canadians naming a charity in their Will increased from five to eight percent between 2019 and 2022; a jump of 1.2 million people. And, according to a survey conducted by Ipsos for RBC Royal Trust, younger Canadians are more philanthropic when it comes to estate planning: among those with a Will, more than half (53 percent) of Canadians ages 18-34, and one quarter of 35-54-year-olds, have requested to include charitable giving compared to just 13 percent of those 55 and older.

There is no question that planned giving has benefits for the recipient charities, including stability of revenue and the ability to plan programming around that revenue. But there are also many advantages to donors, and their families.

The importance of clear instructions

Few will inherit the billions Dr. Gottesman did, but trying to identify the final wishes of a loved one can be distressing no matter the size of a bequest. Dr. Gottesman spent two years on this very question. If she had also passed away, the decision would have fallen to their children.

When instructions for philanthropic giving are included in a wealth distribution plan, it relieves the inheritors of a significant burden. They don’t have to question what the deceased would have wanted or worry that they got it wrong. They’re free to simply remember their loved one.

It’s worth noting that this is an issue on the rise. Over the coming years there will be one of the largest wealth transfers in history, involving trillions of dollars in assets across Canada, the United States and the United Kingdom.

In Canada, women outlive men by a slight margin (the gap between women’s and men’s life expectancies has been narrowing since the 1970s), so it’s likely they’ll bear more than their share of the burden. Managing family wealth is an enormous responsibility made even more challenging without clear directions.

A careful, documented plan can also prevent unnecessary discord. Research indicates only around 30 percent of wealth transfers are successful, in that once the heirs receive their inheritances, the family maintains harmony along with control over their assets.¹ For these reasons and more, benefactors should consider preparing their succession plans now. 

Making the most of family wealth

Planned philanthropic giving is also a pragmatic decision. With strategic preparation, people can identify the best outcomes for their families and the causes they support.

Sometimes, concerns about charitable giving arise from misconceptions. Some worry that their contributions are too modest or that they can’t afford to donate and take care of their family. Understandably, people don’t want to spend their children’s inheritance.

Including philanthropic planning strategically as part of a donor’s overall financial and estate plan creates opportunities for tax efficiencies, sometimes specifically timed to be most advantageous, that may otherwise be missed. 

A legacy that will last years

Of all the reasons for philanthropic giving, creating a legacy may be the most personal. Leaving a gift to an organization or cause makes a statement about the benefactor’s values and it’s a way to provide concrete, actionable support to ensure the work carries on.

You might not be able to take it with you, as they say, but proactive planning will help ensure a donor’s charitable intentions will be carried through.

A meaningful gift that makes an impact

When Dr. Gottesman took the podium at the Albert Einstein College of Medicine in late February to reveal the bequest, the announcement caused an eruption of excitement and joy.  “You can’t ask for a better gift than this,” one teary-eyed student said. “What this gift means to medical students and the future population that this is going to serve is outstanding.” It’s easy to imagine the pride Sandy Gottesman might have felt to witness the bequest.

Gottesman’s instructions to his wife regarding the money were to do what she felt was right, so that’s what she did. Her gift is so important, so appropriate, so profound, that’s it’s almost impossible to imagine anything better. Still, she wonders about it. “I hope he’s smiling and not frowning,” she told the New York Times, adding, “I think he would be happy—I hope so.”

And that is the power of planned giving. It clarifies, empowers and removes those nagging doubts that pester us all—even those fortunate enough to enjoy the kind of trust that Sandy and Ruth so obviously shared.

A version of this article first appeared in Foundation Magazine .

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Sources:

¹ Williams, Roy O., and Victor Preisser. Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values. Robert D. Reed Publishers, 2004.

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