Why Advisors and Charities Need to Explore Charity Planning Techniques to Benefit Their Clients in the Year Ahead

TORONTO, February 1, 2022 /CNW/ – With tax season approaching, it’s not enough to organize the shoebox of last year’s receipts, slips, and notes for our accountant or online filing program. We need to take stock of missed opportunities and plan for the current year.

The good news is that with eleven months to go, charities and advisors have a valuable lead to engage in discussions with their donors and clients, and donors have time to make a difference for themselves. and their communities.

In an ideal scenario, a charity seeks funding armed not only with a strategy, but also with the information a potential donor needs to understand and unlock their giving potential. The donor’s financial advisor also plays an important role in helping to reduce the donor’s tax exposure: essentially, helping the donor exchange a gift in exchange for income protection.

As the stock market hits all-time highs, donors should look beyond just giving from their checking account with after-tax dollars. Instead, advisors and fundraisers should illustrate the benefits of donating assets that will be taxed when sold. In this situation, the advisor transfers the donor’s shares to the charity, no tax is due on the capital gain, and the donor receives a tax credit for the donation. The result is a win for the client/donor, the charity and the advisor.

Bill Petruck, president of FUNDING Matters® Inc., a consulting firm that advises charities on capital and endowment campaigns, and developer of Giftabulator® – an online application that instantly illustrates the tax benefits of charitable giving to from valued assets and estates – understands that planned giving can be daunting. “Complex terms, complex calculations, and the risk of penalties if executed incorrectly prevent many fundraisers and financial advisors from discussing planned giving strategies with their donors or clients, which in turn leads to lost opportunities. costly for all parties.”

Petruck knows that many donors “could have given more in 2021 to save on taxes.” He developed Giftabulator® to facilitate the understanding of the concepts of major gift and planned gift. “When charities and advisors can teach the core capabilities of strategic philanthropy, they deliver value to their clients and that translates into value for everyone.”

James Murphy, Director of Philanthropy at Thrombosis Canada, has seen the positive impact of introducing Giftabulator® to donors in healthcare settings. “Giftabulator has been instrumental in showing major annual donors how they can make tax-efficient gifts from their stocks, registered retirement funds and mutual funds without affecting their lifestyle or that of their future beneficiaries.” Murphy continues to implement Giftabulator® with Thrombosis Canada. “Tax planning and charitable giving are important for healthcare professionals, donors, patients who have received the best-funded treatment, and financial advisors.”

It is important to remember that charities play two main roles: the first is to provide services, care and programs that fill the big gaps that governments cannot or will not fund in communities; the second is to raise funds for these programs and services.

Overall, charities excel in delivering their programs and services with limited resources, day to day and year to year. It is in the second role of fundraising that they often encounter difficulties.

Petruck stresses that charities need to educate donors about endowment based on donors’ estates and current assets. “Rather than relying on a broadly and often randomly targeted fundraising appeal at the end of the year, donors and charities would benefit financially from focused discussions about the importance of giving – and a tool that shows donors how they can afford a tax-efficient donation from more valued taxable assets.”

Giftabulator® is pre-programmed with charitable giving scenarios based on region, household income tax brackets and tax payable on valued assets such as stocks, mutual funds, registered investments, secondary assets and shares of private companies. It generates results in a fraction of a second to illustrate the benefits of a charitable donation.

Trevor Parrylawyer and president of the TRP Strategy Group, criticizes the current federal government for “funding its reckless spending agenda by accelerating a punitive tax regime targeting entrepreneurs, professionals and ordinary investors – in other words, the middle class. Strategic philanthropy is the synthesis of altruism and prudent fiscal planning. Justin Trudeau with loved ones as the main creditor will be disappointed to learn that this is not possible. Charitable giving, especially by those who have accumulated large capital gains in their businesses and portfolios, is the last remaining option for tax relief.”

Planned giving can revitalize a fundraising program. With the right tool and with informed and supported staff, charities can maintain their giving programs and improve the financial situation of their donors.


SOURCE Funding Matters Inc.

For further information: To discuss Giftabulator® or other funding issues, please contact: William Petruck, President and CEO, FUNDING Matters® Inc., (o) 416.249.0788 (c) 416.579.0870, [email protected]