Freedom to Take the Time to Decide
From the time we are young, we are taught that decisions about money are not to be taken lightly. We need to take the time to decide where our hard-earned money is going to go. Whether it is saving up for a bike, car or home, life experience familiarizes us with the pillars of financial literacy. Namely, budgeting, saving and spending wisely.
When it comes to making large-scale donations to charity, we tend think oversized cheques being handed out on TV. However, there’s a process involved that requires thought and preparation. As Abundance Canada clients Fred and Sally MacDonald* taught me, taking the time to make the right decision when we’re giving is just as important as when we’re spending.
Taking the time to make the right decision when you’re giving is just as important as when you’re spending.
So many priorities, so little time
Fred & Sally worked together for many years, slowly building their company up from a part-time project into a successful business. When the MacDonalds decided to retire, they set about building their dream home and selling the company to their children. What a stressful time!
Early in the process, Fred and Sally had decided to give the money from the sale of their business to charity. However, when they finally received the funds, they were completely exhausted. They had put so much energy into all the other decisions around the house and the sale of the business, they didn’t have the energy left to work out the details of their giving.
The pressure of a looming tax deadline pressed down on them.
An opportunity for breathing room
Then, one of Fred and Sally’s friends suggested that Abundance Canada might be able to help them. When I met with the MacDonalds, they were relieved to find out that they could make their donation into a donor-advised gifting account. They would get their charitable receipt to meet income tax deadlines but could still take as much time as they needed – even years – to decide how they wanted to distribute the money to charity. What a relief!
A Donor Advised Fund allows you to get a charitable receipt to meet income tax deadlines.
Choose wisely, not quickly
Making a large donation may happen only once or twice in a lifetime, so it’s important to approach it with the same careful consideration as any other important financial decision. Choosing where to give starts with deciding what impact you want your money to have in the world. Once you have identified a cause you’re passionate about, you need to spend some time researching the various charities working in that sector. With 86,000 registered charities operating in Canada, there are no lack of places to give.
Contributed by: Sherri Grosz, Gift Planning Consultant
*Names and details have been changed to protect the privacy of individuals