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Balancing Wealth & Giving: How YOU Can Donate Comfortably

Updated: Jan 10

In 2021, Canadians gave $11.8 billion to causes they care about. However, many are unaware of the best practices to make their donations go further and also reap financial benefits. This guide provides insights and steps to enhance both aspects of giving.

Understanding Philanthropy in Wealth Management

Charitable giving extends beyond a financial act; it represents empathy, social responsibility, and a commitment to collective well-being. Creating an impact and achieving financial growth can be harmoniously intertwined, and here’s a beginner's guide on how to best approach giving. 1. Tax Efficiency Through Charitable Contributions

In Canada, tax policies are drafted with benevolence towards charitable activities. When you integrate charitable contributions with financial planning, you can leverage:

  1. Tax Credits: Understand how to claim charitable tax credits, reducing your payable tax amount.

  2. Tax Deductions: Explore how donating appreciated securities can offer deduction advantages.

  3. Estate Tax Benefits: Learn how bequests and naming charities in your will can optimize estate taxes.

2. Crafting a Lasting Philanthropic Legacy

Creating a philanthropic legacy involves directing your wealth towards causes that echo your values. You can:

  1. Identify and vet charities and initiatives that resonate with your values.

  2. Establish a structured giving plan, considering aspects like endowments or creating a scholarship fund.

  3. Include your philanthropic activities in your will or estate planning.

3. Pursuing Symbiotic Growth

To achieve simultaneous personal and community development through your financial endeavors, consider:

  1. Impact Investing: Explore opportunities where your investments also drive social or environmental change.

  2. Community Investment: Engage in local community projects or initiatives that yield not just financial but also societal returns.

Strategizing Your Charitable Giving: A Step-by-Step Guide

Ensuring that your philanthropic activities are both impactful and aligned with your financial strategy involves a meticulous approach.

Step 1: Identify Your Causes Start by identifying the causes or organizations you wish to support and do thorough research to understand their impact, utilization of funds, and credibility.

Step 2: Define Your Giving Plan Develop a charitable giving plan considering aspects like donation amount, frequency, and form of giving. Consider utilizing:

  1. Donations of appreciated securities

  2. Non-cash gifts

  3. Engaging with a charitable gift fund or donor-advised fund

Step 3: Understand Regulatory Compliance Navigate through the legal and tax implications of charitable giving in Canada, ensuring your activities are compliant and optimized for available benefits.

Step 4: Measure Impact Institute a framework to evaluate the effect of your charitable endeavors, ensuring that your contributions are utilized effectively and transparently.

Building a Generational Culture of Giving

Integrating charitable giving within your family’s financial narrative can sow seeds for a multigenerational impact.

  1. Engage your family in philanthropic activities and decisions.

  2. Establish a family foundation or a donor-advised fund that aligns with your collective values.

  3. Involve younger generations in philanthropic projects to instill and perpetuate values of giving.

Guiding Your Charitable Giving

DO Wealth is not just a wealth management company; we're a team that guides your path in the philanthropic world, ensuring your charitable giving and wealth planning are strategically aligned. How do we do this?

  1. Informed Decision-Making: Our team assists in identifying and evaluating charities and causes, ensuring they align with your beliefs and values.

  2. Crafting Giving Plans: We develop tailored charitable giving plans that seamlessly integrate with your financial and philanthropic goals.

  3. Ensuring Compliance: DO Wealth provides guidance through the legal and tax aspects of charitable giving in Canada.

  4. Impact Assessment: Implementing structures to monitor and assess the impact of your charitable activities, ensuring transparency and effectiveness in your giving journey.

DO Wealth’s Approach to Charitable Giving

Our team brings a wealth of experience in philanthropic planning and a comprehensive understanding of the charitable sector. They work hand-in-hand with your advisor to explore, identify, and craft strategies, ensuring your charitable aspirations are perfectly in sync with your financial goals.

Conclusion Balancing wealth management with meaningful charitable giving creates a pathway where financial prosperity and societal impact coexist harmoniously. Through strategic planning, understanding regulatory landscapes, and cultivating a philanthropic mindset, your wealth management journey can indeed become a harmonious blend of personal growth and societal contribution.

DO Wealth stands firmly for good financial management and societal contribution. With strategic wealth management and a heart for philanthropy, we would be happy to guide you in crafting a financial narrative that is not only beneficial for you but also instrumental in developing social and individual good.



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