Learn about different options for charitable foundations and building a giving strategy with Heather L.M. Powers, Director, RBC Charitable Gift Program and Philanthropic Advisory Specialist at RBC Wealth Management Canada.
Have you made a charitable gift to a cause that’s meaningful to you? Have you ever considered having a more formal charitable giving strategy in place? Maybe you’d like to share your passion for philanthropy and get the next generation involved?If so, you may want to consider giving directly to an already established charitable organization or setting up your own charitable foundation.
Giving directly to a charity can be a great option if you want to maximize your immediate impact in the community.
If you would like to make a single, more significant gift to a charity and realize the impact over time, you might look to a private or public foundation.
Both options let you make contributions and receive tax receipts. Both may also accept gifts of cash, publicly listed securities, mutual funds and life insurance — and benefit from the associated tax benefits.
The capital will be invested, and grants are disbursed over time to charities you and/or your family are connected to.
Within a public foundation, you would establish a donor-advised fund, and all administration and reporting will be taken care of, giving you the option of being anonymous. With a private foundation, you are required to be responsible for fund administration and releasing annual reports to the public.
If you’re looking for long-term charitable impact and want the most control over administration, then a private foundation could be the right option for you. If you want the tax and legacy benefits that a private foundation offers — with less administration — then consider a donor advised fund at a public foundation.
Whether it’s a private foundation, a public foundation or other form, establishing a strategy for your charitable giving is something that will be unique to you. Our Philanthropic Advisory Services team, alongside your RBC advisor, can help you in exploring how a structured plan can encompass your values and achieve your charitable intentions. As part of wealth planning or legacy planning, we can help guide you through charitable giving tools and strategies, and guide you in developing a personalized giving plan.
To find out more about different options for giving, or incorporating charitable giving into your overall wealth planning, please speak with your RBC advisor.