When Opportunity Knocked … Generosity Answered

Jacinta Catering

When Jacinta started her catering business 10 years ago, she never imagined where it would lead. What began with two volunteer helpers in her tiny home kitchen grew into a successful company employing twelve staff members at a permanent location with two commercial kitchens, five commercial fridges, a warehouse, a hydroponic greenhouse, and even a small café. Then opportunity knocked again!

An Opportunity to Give Generously

A large national food company offered to purchase Jacinta’s business. Following a lengthy negotiation, she agreed to sell them her ninety percent stake in the company over four years and transition into a well-paid consulting position.

Despite putting almost every dollar she earned over the years back into her business, Jacinta had always kept up with charitable donations to her church and the local food bank. Knowing this, Jacinta’s accountant suggested charitable giving to offset some of the capital gains tax she would owe each time she sold a block of shares. Jacinta agreed, and her accountant recommended they meet with Abundance Canada to create a Generosity Plan™. Jacinta had never heard of such a thing, but she liked the idea of creating a strategy to maximize her giving.

Jacinta’s Generosity Plan™

At our first meeting, Jacinta admitted she wasn’t sure where or how she wanted to give. I helped her define her philanthropic goals by reviewing her passions, her current charitable giving and her charitable intent. Her accountant then outlined her current and future financial picture, and we started putting the pieces together for her Generosity Plan™. Jacinta never imagined she would have so many gifting options, from gifts of publicly traded securities and private company shares, to designated charitable beneficiaries on her registered investments, and even giving through her will.

Over subsequent meetings, Jacinta, her accountant, and I developed a customized Generosity Plan that included donations from the company shares she sold, annual cash donations to her Gifting Fund™, and other strategies for charitable giving in her will.

The Satisfaction of Giving Generously

Jacinta was excited to not only continue supporting her church and the local food bank, but also recommended charitable donations to three other charities. She had always admired these organizations but never had the means to support them to this new capacity. Now, it felt great to share her good fortune with others. Jacinta also realized her career change would allow more time to pursue other interests. As she thought through the potential relationships and other changes the future might bring, Jacinta took comfort knowing she could adapt and adjust her Generosity Plan so it would always meet her changing circumstances.

For years, Jacinta’s catering business had been all-consuming, but developing and implementing her Generosity Plan has finally given her a chance to looking back at how far she has come. Jacinta told me that she feels a deep satisfaction that charitable giving is now a significant part of her long-term financial strategy. She’s already started to tackle her generosity goals with the same gusto and dedication that helped her business to thrive.

When Jacinta sold her catering business, she seized the opportunity to increase her generous giving to the charities she already supported (while maximizing her tax savings). Here's her story:Click to Tweet

David Barker

 

 

Contributed by David Barker
Gift Planning Consultant

 

Share this content using one of the buttons below.