There comes a time in everyone’s life when they start to think about how their money can best be put to use in their final years and after they’re gone. In the past, people would cut cheques to their favourite charities, but once that money ran out there would be nothing left to give.
Donor-advised funds make it easier for high-net-worth Canadians to set up, maintain and contribute to a private foundation-like vehicle.
The wealthiest Canadians got around that by setting up private foundations, which allowed them to invest and grow their money and then donate the capital gains or dividend income to charity. As long as the principal wasn’t depleted, those donations could be made year after year.
However, managing a private foundation takes a lot of work and money, which is why, over the last few years, financial firms have begun offering donor-advised funds. These funds make it much easier for high-net-worth Canadians to set up, maintain and contribute to a private foundation-like vehicle.
We spoke to David Ablett, Investors Group’s Director of Tax and Estate Planning, about why donor-advised funds are ideal for those who want to leave a long-lasting legacy.
The Investors Group Charitable Giving Program is offered together with the Strategic Charitable Giving Foundation, which operates independently from Investors Group. Donations are irrevocable and vest with the Foundation. This information is general in nature and not intended to be professional tax advice. Please read the Program Guide for complete details, including fees and expenses.