I know I have said this before, but I have to say it again. “I am so grateful to have the best job and the best clients ever.”
When I say that I have the best clients, what I mean is that our clients are the most kind and generous people I have ever met. Aside from the fact that many of them started their careers “with $5 and a wooden suitcase” and then worked relentlessly motivated by the fact that they had family to support. These people know what it is like to struggle, do without things, and “having nowhere to go but up.” Yet here they are today, successful in their careers and wealth.
So now that they have made it what do they do? Virtually every one of them helps others. In many cases (I know) the giving that they do doesn’t come with a tax receipt and sometimes it does.
What sparked this blog today was a phone call from a client who asked, “How can I setup one of these Charitable Gift Funds so that I can donate? What are the rules and is there a “best way” to do it?”
Most clients have a retirement account, TFSA and investment account or two. The next step for you to consider is to open a “Charitable Gift Fund” account. Here are some highlights about how they work:
- It is your charity and you decide which registered charity you instruct us to give money to.
- You simply fund the account in order to open it, and receive a charitable receipt for that.
- You can name the charity e.g. “Smith Family Charity”.
- We can help you decide how to contribute. For example contributing those CP shares that you paid $50 for and are now $400, can be done without incurring a taxable capital gain, but you get a receipt for the full value of the gift.
- Once the money is in the fund you don’t have to send all of it out to your favourite charities, you can do a little bit each year.
- You can encourage your friends to give to your charity and they get a tax receipt.
- Your charity can be managed by your children long after you are gone, as a remembrance.
These are only a few reasons why clients and friends establish their own charitable foundations. The biggest reason of course is that you are an amazing human being!
Please contact me so that we can discuss the concept and to a lesser extent the many tax benefits of gifting.