Philanthropy Becomes an Opportunity

West Oak Family Office - Philanthropy becomes opportunity

Nothing brings a family closer together than a shared purpose over shared values. Foundations provide opportunities for teaching children and young adults about giving back while allowing philanthropy to become a family affair. It can also be a good segue into learning about how investment management plays into this and other aspects of the overall family framework. The rapid pace of our lifestyles offers few opportunities for families to work together on significant issues that are meaningful for them, and to provide a platform for learning.

The real gift of philanthropy therefore, becomes one of the best ways to strengthen a family’s bond, teach family values, and encourage giving across generations.

For many families, the foundation becomes the center around which multiple generations may gather to discuss areas they would like to see resolved in their communities, and around the world. The real gift of philanthropy therefore, becomes one of the best ways to strengthen a family’s bond, teach family values, and encourage giving across generations.

Tax relief is provided for charitable donations made by individuals and corporations. For Alberta residents, the donation tax credit you receive when you make a personal donation greater than $200 is 54% for those in the highest tax brackets, whereas our highest marginal tax rate on income is 48%. Further, if you have public company securities with large inherent gains, your capital gain is eliminated if you donate these shares, rather than sell them first.

There are generally three philanthropic vehicles we see our families use: public foundations like the Calgary Foundation; private foundations; and a blend of the two which most of our clients prefer. Wellington-Altus has partnered with Gift Funds Canada, which allows an individual to contribute to their own Gift Fund foundation, which they can name. They receive a donation tax credit equal to the fair market value of cash or securities in kind that go into the fund, the assets are managed by our team and gifts from their foundation can be made to organizations at any time. Assets in a foundation grow tax free and can be sent to organizations from this foundation tax free.

More families are requiring the investments held in their foundation meet certain criteria and specific qualities they value as a family.

There is a growing interest in impact investing and a desire to invest in companies that have a framework around environment, social and governance (ESG) policies. More families are requiring the investments held in their foundation meet certain criteria and specific qualities they value as a family. West Oak Family Office has created a framework within our existing investment management platform to allow us the ability to filter companies that resonate with the overall objectives of a specific foundation’s mission statement and family’s values.

Wealth and philanthropy across generations.At West Oak Family Office, we take time to learn everything we can about the families we serve so we can help them make the best decisions around their wealth for today and tomorrow. We’re passionate about teaching our families financial literacy, and sharing ways in which they can be good stewards of their wealth while at the same time protecting what they’ve worked so hard for.

We want to know what families are passionate about and then be able to help them find organizations they want to help, while also saving tax where they can. Our families see how important philanthropy is to educate the next generation on family values, the purpose for their wealth, and how to respect it and use it wisely.

We want to know what families are passionate about and then be able to help them find organizations they want to help.

Each family is different and has different priorities but the simple act of sitting down together and deciding where to use their wealth to make a difference in the world enhances the family dynamic and allows not just for deeper conversations but more lasting impacts.

At West Oak Family Office we do many things to help protect the wealth and create a legacy for the families we serve, taking into account some of the tax benefits that can be garnered from it. When we sit down with a family to discuss and plan how they’ll perpetuate their family values over future generations through philanthropy, it can’t help but strengthen those values and the family.

Family. Lifestyle. Legacy.

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The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus. Wellington-Altus Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. All trademarks are the property of their respective owners.