Dreams of Generosity
Melanie* worked hard running a successful business. And “run” was absolutely the right word to describe it – every day she was racing in several different directions and the Christmas season only added to the pressure. When Melanie finally sat down to review her annual charitable donations, her heart sank. She had made one-off gifts to a variety of charities throughout the year, but she hadn’t been nearly as generous as she had hoped. And now December was almost over, and time was running out.
An Easy Plan for Giving
Melanie called Abundance Canada for help, and we arranged a virtual meeting. Her manner was businesslike as she explained that she wanted a simple, flexible, tax-efficient way for both her and her company to donate to charity. Her eyes lit up asI explained that a Generosity Plan™ would not only simplify her current giving, but also help her set up her future philanthropy. She could build up her Gifting Fund™ with contributions that fit her schedule and take the time to make careful recommendations about where to give.
Melanie liked the idea of investing in generosity over the long term. She hoped her Generosity Plan™ would help her grow a substantial fund earmarked for charitable giving. She planned to donate a portion to a variety of charities each year, while leaving the remainder invested for future giving.
Giving Today and Preparing for Tomorrow
Melanie’s brow suddenly furrowed with concern as she asked how much work was involved in creating and implementing a Generosity Plan™. After all, a lack of time had prompted her to call us in the first place. She relaxed as I explained that starting her Generosity Plan™ was simple.
Eager to get started, Melanie wrote a cheque to Abundance Canada for $150,000. She preferred to give strategically but admitted she didn’t have time to deal with all the financial decisions around which assets would be most tax-efficient to donate. I explained that a donation receipt would be mailed out to her within two weeks and offered to work with her accountant to explore donating publicly traded securities in-kind in the future.
A Generosity Plan™ Makes for One Less Worry
Melanie’s charitable giving is now back on track. Her customized Generosity Plan™ allows her corporation to align their donations with the company’s profits, donating the most tax-efficient assets each year. A portion of the fund is earmarked for giving during the year, and the rest is invested for future generosity. Anytime Melanie wants to donate to a charity, she simply emails her recommendations and Abundance Canada manages the distribution. It has made charitable giving one of the easiest decisions in her busy life.
This Christmas Melanie still has her fair share of worries managing a business amidst the pandemic, but thanks to her Generosity Plan, keeping up with her charitable giving isn’t one of them.
* Pseudonym used and details changed to preserve client privacy
Contributed by Susan Yakabowich
Gift Planning Consultant