Changing your approach from reactive to strategic can make a greater impact
Not only is charitable giving a meaningful way to create a legacy, it’s also an important estate and tax planning tool. A carefully crafted, strategic giving plan can complement your overall wealth plan and leave a lasting impact on the causes you care about.
Gender differences in giving
The share of global and Canadian wealth held by women is rapidly increasing. In fact, by 2026, women in Canada will control close to half of all accumulated financial wealth.[1] Not only that, but predictions indicate that the vast majority of women will be the sole financial decision maker at some point in their lifetime.
Women are also changing the face of philanthropy, a traditionally male-dominated field. And as it turns out, men and women are very different when it comes to charitable giving.
Research shows
Research highlights some these interesting philanthropic distinctions between men and women[2],:
-
Give more
Single women are more likely to give than single men by a margin of 9 percent. Households headed by females give nearly 2x as much as those headed by males. -
Due diligence
Women spend more time on charitable due diligence than men. -
Communication and impact
Women expect a deeper level of communication with the organizations they support, and place greater importance on hearing about the impact of their gift.
Why people give
Everyone has their own motivation for giving. For some it’s altruism – they want to want to help others. For others, it’s personal experience – their donations matter to someone or something they care about. And, according to a study published in Psychology Today, 85% of people give simply because they’re asked.
Sylvia Azoulay, Vice President, Tax and Estate Planning at Richardson Wealth, agrees.
“Reactive giving is probably the most common way to give,” she says. “We respond to our friends and family who are fundraising … or we respond to the solicitations of the charities that we like and give to them every year.”
But what if you approached giving more strategically? Although it takes time and discipline, strategic philanthropy helps your giving be more meaningful and has a greater impact on the causes you care about most.
“Strategic giving is being proactive about thinking about the ways you can use tax incentives and advantages,” says Sylvia, “and thinking about ways to leverage your giving and narrow down the causes you want to support.”
Discover your giving priorities – 3 key questions to consider
Before you implement a strategic giving plan, you need to understand your ‘why’. Getting clear on the answers to these three questions can help.
Put your giving plan into action
Once you’ve narrowed down the causes that are most important to you, you can start to think about how to give.
Here are some questions to consider:
How often do I want to give?
(one-off gift, multi-year commitment)
Do I want to use a giving vehicle like a donor advised fund?
What can I afford to give?
(during my lifetime, through my estate, or both)
Do I want to be acknowledged publicly, or give anonymously?
Do I want to include my children in my philanthropy?
Do I want to have any charitable bequests outlined in my will?
Ready to get started?
Work with your Richardson Wealth Investment Advisor
Talk through these questions and craft an effective charitable giving strategy that fits into your overall wealth plan.
Get in touch with us.
Have questions? We’re here to help. Send us a short message explaining what you’re looking for, and we’ll reach out to you soon.
Want to learn more?
Listen to this episode of our podcast “Maximizing the impact of your charitable giving”. Click here to listen now.
[1] Investor Economics – Household Balance Sheet 2017 Report – Investor Economics
[2] Source: Women’s Philanthropy Institute at Indiana University