Charitable donations are satisfying and can be as simple as writing a cheque to your favorite cause. But with proper planning, your generosity can go even further, creating an impact beyond your expectations.
This month we bring you a charitable donation success story.
Scenario:
Our partner Francesco Laudadio created a financial plan showing that clients at a specific lifestyle expenditure level would have significant assets left over by the time they reach their life expectancy. The clients currently make annual cash donations and communicated a desire to leave a portion of their estate to selected charities that have significant meaning to them.
Solution:
Smith Falconer Financial Group created an annual, planned charitable giving program using a combination of life insurance and a Donor Advised Fund. Under the plan, donors receive a tax receipt for the amount of the policy premium and for the amount of the donation to their Donor Advised Fund.
Results:
This strategy translates into significant tax savings each year for clients who donate appreciated shares, eliminating capital gains tax and reducing the income tax owed.
By donating to a Donor Advised Fund the client has the flexibility of receiving a tax receipt each year without having to commit to specific charities. The amount of 3.5% of the fund must be disbursed to a charity each year, or the clients can request a larger donation, giving them the satisfaction of seeing the results of their giving during their lifetimes.
Very best regards,
CIBC Wood Gundy
Smith Falconer Financial Group
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