Learn about what to consider when creating a charitable giving strategy, with Philanthropic Advisory Specialists at Wealth Management Canada, Aileen Battye and Kimberley Plewes.
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.
You’ve likely supported charitable causes in one way or another. But have you ever considered having a more formal charitable giving strategy in place? Perhaps you’d like to educate and get the next generation involved?
If so, your family may want to consider setting up a charitable foundation. This could be a public or private foundation, depending on your needs.
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—some of which have tax benefits associated with them.
The capital in your foundation will be invested in a balanced approach, and grants are disbursed over time to charities you and/or your family are connected to.
With a public foundation—or a “donor-advised fund”—all administration and reporting will be taken care of, giving you the option of being anonymous; whereas, with a private foundation, you are required to be responsible for fund administration and releasing annual reports to the public.
If you’re looking to be actively involved in your charitable giving activities, then a private foundation could be the right option for you. If you want the tax and legacy benefits that a charitable foundation offers—with less administration—then consider 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 help 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.