Charity Presentation
Transcript: 1. Get on the Board Step #2: Complete the form with your charity of choice as one of the beneficiaries. The 50/50 Strategy 5. Get involved….don’t just show up! Avoid Capital Gains Source: Statistics Canada & CAGP 4. Pitch Money Management or Insurance Four Reasons Why Advisors Don’t Discuss Philanthropy Benefits to Ken and Doris… 4. Join The International Association of Advisors in Philanthropy www.advisorsinphilanthropy.org 1-888-597-6575 Next Steps and Resources Who do you wish to receive your money? 150% growth in receipted donations from 1995 to 2008, from $3.60B to $8.19B Case Study: Ken and Doris Trip Around the World Shaw, Gillian. “Better to give than receive? Charities are hoping to share in the trillions to be inherited in coming years." Vancouver Sun 7 April. 2008 Working With Charity “There is a difference between knowing the path and walking the path.” Morpheus (Character from the movie “The Matrix”) $200,000 for Each Child $1 Trillion to $3 Trillion What about the kids!? Taxpayer tax•payer $30,000 for each Grandchild 6. Be authentic and passionate about the cause The 60 Second Bequest Agenda 1. Join a charitable committee (or two or three) 3. Suggest they refer you to high net worth donors 50% of stock is sold with proceeds retained for personal use Why We Don't Our Government Agrees! Working With Clients and Charities to Protect and Expand Social Capital The 50/50 Strategy 3. Loss of Assets Ken and Doris Are taxes at death 100% Voluntary? Wealth Over Time Convert Taxes to Charitable Giving Who is this? Someone who gives up approximately one-quarter of their capital gains or one-half of their retirement income to support the general welfare of our country. Step #3: Return the Form to your plan administrator. More To Estate - Less To CRA Philanthropic Trends 3. Join The Canadian Association of Gift Planners www.cagp-acpdp.org 1-888-430-9494 Estimated Between $150 to $625 Billion History's Largest Intergenerational Wealth Transfer Would you donate your money this way? st 7. Make Larger and Larger Donations Charitable To Do List 2. Lack of Expertise One Strategy they could use… Charity Myth: “Making a significant gift to charity in your estate could mean disinheriting your children.” Ipsos Reid Public Affairs, Talking About Charities 2008 7. Don’t expect business overnight (or at all) 5. Offer to do free donor presentations 4. How to Initiate Step #1: Request an RRSP/RRIF Multiple Beneficiary Designation form from your plan administrator. Involuntary Philanthropist! Do you believe that charity does a better job of meeting the needs of Canadians than our government? Family The 7 “Myths” About How to Work With Charity 86,000 Charities! $60,000 Annually For Lifestyle Visit Grandchildren Every Three Months Ken – age 63 Doris – age 60 Retired 4 years 3 married children 6 grandchildren House and cottage What if you had a choice? $ Involuntary Philanthropy versus Voluntary Philanthropy Income they can’t outlive Techniques to Bridge Conversation Ken and Doris' Old Financial Results First Step: Clarity Ken and Doris Goals Reality: “Including charitable giving in your estate plan can be thought of as adopting another child while disinheriting the taxman.” 1. Misunderstanding Family 6. Describe your unique planning process Source: Statistics Canada, Investor Economics Population over age 65 - Millions 2. Network at The Canadian Association of Gift Planner Give to favourite Charity Why Shaw, Gillian. “Better to give than receive? Charities are hoping to share in the trillions to be inherited in coming years." Vancouver Sun 7 April. 2008. The Donation Multiplier Charitable Component of Wealth Transfer The Donation Multiplier $100,000 Publicly traded stock with a capital gain of $80,000 50/50 Strategy 2. Join a board (or two or three) Webster’s Philanthropists phi·lan·thro·pist Benevolent supporter of human beings and human welfare. Identify Surplus Wealth Ken and Doris New Financial Results Create Tax Deductions A Thought on Insurance… Family Legacy Surplus Wealth $25,000 + $40,000 = $65,000 Charity Canada Revenue Agency $5,000 per year Annuity $2,000 $0 100% of taxes are eliminated! Excess Capital Social Capital Legacy Donate $50,000 to Charity Create Tax Deductions $100,000 Lifetime Income of $2,000/year 50% of stock is donated Lifestyle Line The 50/50 Strategy Peace of mind (Do we have enough?) More income for us (If possible) Leave more to children & grandchildren Convert taxes to charitable giving Ken and Doris $50,000 $0 Charity Sell $50,000 = $40,000 after-tax $400,000 Avoid Capital Gains Tax on Gain = $20,000 $80,000 $100,000 $65,000 Family $0 Create Annuity Income of $3,300/year Income they can’t outlive LAST What about this? $100,000 Cash $20,000 $0 $1,300/year purchases $100,000 policy Charity Financial Independence Give to favourite Charity Tax Savings $25,000 Canada Revenue Agency