One of the simplest yet most impactful actions you can take to help your clients enjoy the benefits of charitable giving is to ask them this key question: “Is there a cause you are passionate about or a community need you would like to address?”

Some advisors are reluctant to begin a charitable giving conversation with their client, and may be concerned about appearing to make a values judgment, especially if the client has not expressed charitable intentions. However, by not broaching the subject of charitable giving, a significant opportunity may be lost for your client and the community. In fact, many individuals expect their professional advisors to bring up the subject if appropriate, and assume charitable giving is not an option if the subject is not raised.

There are six different gift options for Canadian donors:

A gift of cash to Nanaimo Foundation provides immediate support to local programs or helps build endowment funds for future needs. Donors can give through cash, cheques, credit card payments, or monthly pre-authorized contributions. Benefits for donors include the satisfaction of seeing their impact immediately, creating a lasting legacy, fulfilling a sense of social responsibility, and enjoying tax advantages. Cash gifts are suitable for anyone who can afford to part with some of their principal.

Donating appreciated securities like publicly listed shares or mutual fund units can eliminate capital gains tax, making it a cost-effective way to give. This method is beneficial for donors with significant investment portfolios. The donor receives a donation receipt for the fair market value of the securities, and capital gains taxation is favorably reduced. The process typically involves a simple electronic transfer of shares.

Including Nanaimo Foundation in a will allows donors to leave a lasting legacy. Bequests can be funded with cash, securities, real estate, or retirement plan proceeds. Benefits include the flexibility to revoke the bequest during the donor’s lifetime and significant tax advantages for the estate. Bequests are particularly suitable for older individuals with few or no heirs.

Donating real estate, such as a personal residence or investment property, can significantly benefit a charity while providing substantial tax benefits to the donor. This option is ideal for donors who no longer need certain properties. Benefits include a donation receipt for the property’s fair market value and potential capital gains tax offsets.

Life insurance policies can be a practical way to make a significant charitable gift. Donors can either transfer ownership of a policy to a charity or name the charity as a beneficiary. This method is suitable for individuals who no longer need the policy for personal purposes or want to leverage a small current outlay into a larger future gift.

Charitable remainder trusts allow donors to retain income from their assets during their lifetime while committing the remainder to charity. This method is beneficial for donors with significant assets who wish to continue receiving income. The donor receives an immediate tax credit for the present value of the remainder interest, and the trust can be structured to suit various needs, including providing for heirs.

Working with Nanaimo Foundation offers several key benefits for your clients looking to establish an endowment fund or engage in giving to charity. Firstly, we serve as your partner, allowing you to maintain control of your client relationships while expanding the charitable options available to them. Our expertise in charitable giving enables us to craft tailored giving plans, whether it’s setting up alternatives to private foundations or developing intricate estate plans.

As a community foundation, we provide in-depth community expertise through our advisory committees and strong local connections, ensuring your clients’ philanthropic efforts are effective and impactful. By helping families establish advised funds, we facilitate cross-generational involvement, allowing both you and the family to stay engaged for years to come. Your clients can also donate a variety of assets, such as cash, appreciated securities, and real estate, either immediately or as part of an estate plan.

Partnering with us helps enhance your clients’ legacy and community impact while potentially increasing their heirs’ inheritance and educating the next generation about philanthropy. Moreover, starting a fund at a community foundation offers maximum tax benefits and is more cost-effective and straightforward than setting up a private foundation. By working with us, your clients can effectively contribute to charity and make a lasting difference in their community.

You can help your clients maximize the benefits of charitable giving during major life transitions, such as selling a business, estate planning, retirement planning, or receiving a financial windfall. These moments often prompt changes in financial plans, including charitable giving. Consider discussing charitable planning when clients:

• Plan to take their company public or transfer family business ownership.
• Want more income from stocks but are concerned about capital gains tax.
• Discover a large retirement fund that won’t fully benefit their heirs.
• Wish to provide income to relatives while supporting a favorite cause.
• Plan to sell a secondary property and donate part of the proceeds.
• Inquire about private foundations, which can be more restrictive and costly than community foundation options.

By recognizing these opportunities, you can help clients achieve their charitable goals effectively.

If your clients are interested in including philanthropy in their plans but are unsure about which cause to support, you might ask them

• When you lie awake at night, what do you worry about?
• What values, activities, and organizations contributed to your success?
• At your funeral, what would you like people to say, “They really cared about …”

At Nanaimo Foundation, our team is trained to help with this conversation. A confidential meeting with you and your client could help them distill their philanthropic intentions.