“More and more, people are considering charitable giving, outside of their will, when formulating a wealth plan,” says Tracey Lundell, an Investment Advisor with Sea Glass Wealth Advisory Group, part of Harbourfront Wealth Management.
Along with her colleagues, Kristina Thomas and Sheryl Thomas, Tracey offers personalized investment planning and goal setting advice to Sea Glass Wealth Advisory Group clients.
An important part of those goals can be charitable giving. Tracey offers a few reasons why philanthropy can be a rewarding way to give back to the community while making sense to a financial plan.
1. Reaping the tax benefits
“There are many ways to donate that are beneficial from a tax point of view,” Tracey explains. “and this forms part of our planning process. Donating securities that have appreciated in value, for example, can be a way to get some tax relief on the capital gain.”
A point to keep in mind, though, is the capacity of the organization chosen to be a recipient of the donation.
“Some charities obviously have more ability to accept sophisticated instruments as donations than others,” Tracey notes. “It’s important to keep the organization’s need and resources in mind too.”
2. Supporting a cause you care about
“At Sea Glass Wealth Advisory Group, planning for philanthropy means matching our client’s values to a charity’s mission,” Tracey says. “First, we identify a number of charities that our client might find interesting and rewarding. There may be several and after discussion with the client, we narrow it down to two or three. That’s when the research comes in.”
The research involves making sure that the organization is a reputable non-profit with a proven track record of achieving goals that the client finds important.
3. Establishing a Private Giving Foundation
“Another option that people often don’t think about is a Private Giving Foundation,” says Tracey. “It’s a vehicle designed for donating to a number of charities over a longer time frame.”
Setting up a Private Giving Foundation requires just $10,000 capital to start, and it often involves the whole family.
“We’ve seen clients set up a Private Giving Foundation and have their kids and even grandkids sit on the foundation’s board, helping to make the donating decisions. It’s a wonderful way to involve the younger generation and give them the philanthropic experience together with learning new skills.”
For more information on Sea Glass Wealth Advisory Group, call 604.358.3123, visit the website, email firstname.lastname@example.org, or visit the office at 310-15252, 32nd Ave, Surrey. Tracey can also be found on LinkedIn and Twitter.