A lot of people think that philanthropy only applies to the super wealthy—think multimillion dollar donations to hospital foundations. However, that’s not the reality; philanthropy is available to everyone, and anyone can make it part of their financial plan. Regardless of amount, it’s a powerful way to make a real impact on the causes that matter to you. My personal experiences have shaped my family's charitable giving plan, highlighting how empowering it is to give back. Philanthropy is also a key part of how I help my clients achieve their goals, serving as a valuable tool in tax management and estate planning.

 

A Personal Catalyst: The Ride to Conquer Cancer

This month, I participated in the Ride to Conquer Cancer for the fourth consecutive year. This event, the largest athletic fundraising event in Canada, is a testament to the collective effort to fight this horrible disease. The ride from Toronto to Niagara Falls spans over 200 kilometers and symbolizes endurance and commitment. This year, the event raised over $20 million, fueling critical cancer research and treatment programs.

My involvement in this event began in 2020, spurred by a personal crisis that redefined our lives as a family. My husband’s cancer diagnosis was a turning point, a moment precipitated by an innocent kick from our then 2.5-year-old son. This playful act set off a chain of events leading to the discovery of his illness. Thanks to the early detection and the incredible cancer surveillance program at the Odette Cancer Centre at the Sunnybrook Health Sciences Centre, he received the care and treatment needed. In August 2023, he was declared cancer-free, a milestone that we celebrate with immense gratitude.

 

Finding Purpose in Philanthropy

As a support person to a loved one with a cancer diagnosis, the journey is emotional. Despite our best efforts and proximity, there’s little we can do to help, and it is impossible to fully understand what they are going through. For me, philanthropy became a way to contribute meaningfully, to feel useful in a situation where it’s easy to feel helpless.

We know how lucky we are to have benefited from the research and care funded by charitable initiatives. Today, philanthropy has given our family a platform to support others facing similar struggles. The frightening reality is that cancer is relentless; everyone has a story like ours or knows someone who does. The Ride to Conquer Cancer, brings together a community of individuals united by their experiences and their resolve to have an impact. This shared purpose has been both comforting and empowering.

 

Integrating Philanthropy into Financial Planning

Charitable giving is not just a personal commitment for my family; it’s a fundamental aspect of our financial plan. We allocate a portion of our household budget to charities that resonate with us, predominantly cancer and children’s organizations. This structured approach ensures that our philanthropic efforts are consistent and impactful.

Additionally, we involve our kids in these decisions, allowing them to select causes they care about as they grow older. This practice aims to share with them the value and purpose of giving back to society.  

 

The Dual Benefits of Charitable Giving

While the primary motivation for our philanthropy is to support meaningful causes, the tax benefits are a welcome advantage. Charitable donations can provide significant tax deductions and can be a great tool to manage your tax burden, especially in years of large liquidity events like a business sale for example. These incentives help to maximize the impact of giving while also benefiting from the tax relief.

 

Practical Tips for Effective Philanthropy

Philanthropy shouldn’t be overwhelming and non amount is too small. However, it’s crucial to understand the tools and accounts available and have a clear understanding of how your contributions will affect your financial goals. Here are some practical tips to help you get started:

 

1. Create a Giving Plan: Outline your philanthropic goals and identify the causes that matter most to you. Determine the percentage of your income or budget that you’re comfortable allocating to charitable contributions.

 

2. Involve Your Family: Engage your family in the decision-making process. This practice not only distributes the responsibility but also educates younger members about the importance of giving back.

 

3. Explore Tax-Advantaged Accounts: Utilize accounts such as Donor-Advised Funds (DAFs) which offer immediate tax deductions and allow you to recommend grants to your favorite charities over time. (if you’re not familiar with our Charitable Gift Fund program, ask me for more information—think a mini foundation without all the costs and restrictions)

 

4. Leverage Matching Gifts: Many employers offer matching gift programs that can double or even triple your contribution. Check with your employer to see if this benefit is available.

 

5. Donate Appreciated Assets: Consider donating stocks or other appreciated assets instead of cash. This strategy can help you avoid capital gains taxes and provide a larger gift to the charity.

 

6. Plan for Legacy Giving: Incorporate charitable giving into your estate planning. This can include bequests, charitable trusts, and other planned giving options that ensure your philanthropic legacy continues.

 

Conclusion: A Personal and Professional Commitment

Philanthropy is deeply personal and isn’t for everyone. However, it’s important to understand your options and seek guidance on incorporating these goals into your financial plan if they are important to you. My personal commitment to philanthropy is based on my own experiences and our family’s values. My professional commitment to my clients is to help them build a plan that reflects their unique goals and values.

If you’d like to discuss any of the options available to you or how to integrate your gifting goals into your financial plan, please reach out.

Here’s to making sure your money is having an impact in all the ways you want it to!

Kayte