By Jennifer Mabee, Senior Wealth Advisor  | IG Wealth Management Inc., Mutual Fund Division

Every year Canadians donate to charities, and this generosity is part of our culture. Behind every gift, there is a reason. At its core charitable giving is usually much more about powerful emotional drivers than the financial side. 

Although every donor’s journey is very personal, we tend to be drawn to community and desire a sense of belonging. Often wanting to feel connected to something larger than ourselves, sometimes we join a group or community that can achieve together what we can’t accomplish alone. It’s how we create change that lasts beyond a single moment.

We also often give for a sense of purpose as a way of expressing our values. Every gift can be a statement or tell a story based on our individual experiences. We may desire to create something that lasts well beyond today, to leave a mark that outlives us shaping a better future for others. 

When we think of being generous it can mean so many different things. It can be simple acts of kindness, giving of our time or giving through our income or wealth. 

Many do not consider the long-term thinking of building a legacy. Many think it can only be for those that are considered extremely wealthy. The truth is that anyone can have philanthropy as part of their estate plan and create a legacy.

In addition to the emotional side, there can also be the financial strategic side. When we plan well through timing, tax credits, and the right vehicles we can enhance our impact.

It is important to consider if you should give cash or investments in kind as there may be tax benefits you can take advantage of. You could consider donating a life insurance policy and depending on your wishes there are different strategies to accomplish this.  If you have a business, another thing to consider is whether you should donate personally or corporately. 

Many think it can only be for those that are considered extremely wealthy. The truth is that anyone can have philanthropy as part of their estate plan and create a legacy.

One of the most exciting new ways to give is through the establishment of a Donor Advised Fund. It is convenient, personal and simple way to create a legacy. Essentially you create an account and name it, make your initial gift, choose your charities with the flexibility to grant funds to your preferred charities over time. This account can outlive your lifetime, it can become a family tradition or a teachable opportunity for younger generations. 

Ultimately giving is a sense of fulfillment, but thoughtful giving deserves thoughtful planning. By consulting your trusted professional advisors, you can develop a charitable giving strategy that supports the causes you care about while maximizing the financial and tax benefits available to you. With a well-designed plan, your generosity can have an even greater impact today and for generations to come.