This toolkit, developed by Community Foundations of Canada, provides a full range of information and tools to help you in your work with clients, and to learn more about community foundations.

Advisors

Introducing Giving

Why raise charitable giving at all?

Charitable giving can generate significant tax benefits in both annual and estate tax situations — your client may not be aware of this opportunity.

The ability to provide for a charitable gift often produces a deep sense of fulfillment and satisfaction — your client may be very grateful to you for not only asking the "giving question", but also helping him/her to satisfy that philanthropic desire.

Your client may never have mentioned an interest in charitable giving — perhaps due to a disappointing experience or to lack of information about the range and scope of opportunity. You can offer your client an opportunity to become informed without any obligation.

Your client may think that his/her resources are not sufficient to consider charitable giving. You and/or HCF can show your client a variety of creative ways to make a gift that is compatible with his/her personal and financial circumstances.

You live / work in this community too. This is an opportunity not only to serve your client, but also to help your community thrive.

How can you introduce the subject?

When drawing or reviewing a will, include the "giving question" as a regular item on your list of issues to discuss with your client.

In advance of your meeting, provide your client with a printed list of issues and questions (including charitable giving) to be addressed — this allows your client to consider the idea ahead of time and ensures that the question is not overlooked.

Introduce the subject in a way that generates a thoughtful rather than reactive response:

• "Many people who have been actively involved in their community like to leave something in their will for charity — as a way of sharing one's good fortune with those who have been less fortunate, or of repaying an organization that has made a difference in their lives, or of helping make our community a better place in the future. Had you considered the possibility of a charitable gift in your estate plan? "
• "There are other reasons as well to consider a charitable gift — tax savings, for one. It would appear that your estate will be substantially reduced by income tax. Charitable giving can reduce that tax burden and benefit both your inheritors and your community."
• "Are you aware of the income tax provision that both eliminates the capital gains tax payable on the sale of appreciated securities when you gift shares and, reduces your tax otherwise payable?"

If your client shows interest, but cannot make an immediate decision, include a bequest clause in the will with blanks to be filled in. When you send your client a draft of the will, he/she will have a chance to think about the gift and to talk it over with family or other advisors. It may also provide an opportunity for your client to make inquiries about particular charities or to seek information or guidance from HCF about community needs, opportunities and potential beneficiaries.

If your client asks for your opinion or advice on charitable giving, and you are concerned about conflict of interest or the appearance of undue influence, suggest that he/she seek information from HCF about charitable giving opportunities both in the community and beyond. This is a service provided by the community foundation as part of its commitment to the growth of philanthropy in the community. All such inquiries are held in strictest confidence and there is no obligation on the part of your client.