Planning for a Generous New Year

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Michael and Shalen* had weathered the economic shifts and shutdowns of 2020 relatively well, but many in their community had not been so fortunate. Some friends and neighbours lost their jobs. Businesses went under. Local charities shut their doors for good. It was heartbreaking. Michael and Shalen had always dreamed about establishing their own charitable gifting fund, and 2021 seemed like the perfect time to start. They picked up their phone and reached out to Abundance Canada.

A Generosity Plan™ Starts with the Heart

When I met with Michael and Shalen, we discussed their philanthropic hopes and dreams before anything else. They talked about how their neighbourhood had changed over the past eleven months and told me how grateful they were for all that they had. When I asked them how they hoped their generosity would impact the world, they considered the question for a long time before simply answering that they wanted to give people a “hand-up,” and preferred to focus on their local community.

Next, we explored their capacity to give. I asked more questions, and each thoughtful answer provided another guidepost in mapping out their plan. Michael and Shalen wanted to create a Generosity Plan™ that allowed them to give during their lifetime and through their estate. Most of their contributions to their Gifting Fund™ would be cash or publicly traded securities, but they were also considering adding a gift of life insurance once they no longer needed it. After considering their options, we designed a customized Generosity Plan to help Michael and Shalen achieve their philanthropic goals in 2021 and beyond.

Giving Back to Help Others Move Forward

They implemented their Generosity Plan with an initial in-kind donation of publicly traded securities and received a charitable receipt for the market value of the shares. They designated a portion of their donation to be used in 2021 and recommended distributions to several charities connected with their local community. Knowing the road to recovery would not be instant, the balance would remain in their Gifting Fund™ to grow, and the earnings, capital or both could be used in their future giving. Michael and Shalen are so happy and excited to give back to their community.

Michael and Shalen have no regrets about their ambitious New Year’s resolution. Having a Generosity Plan™ has even helped them to face 2021 with new hope and happiness as they move forward focused on helping others.

Are you ready to make a Generosity Plan part of your New Year’s resolutions?

* Pseudonym used and details changed to preserve client privacy

Contributed by Katherine Smart
Gift Planning Consultant

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