All About Estates

Category: Philanthropy/Charitable Giving

Total 109 Posts

Restricted Charitable Bequests

One the biggest trends in philanthropy of the last thirty-years is the rise of donor-directed or restricted giving.  Donors want more control, which typically results in more restrictions being placed on gifts. But there are risks of placing restrictions on a charitable gift by will. Failure and Cy Pres Simply,…

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How long is perpetuity?

    “Is perpetuity 21 years?”, asked a charity colleague.  “Well, no, it’s forever.  Or until the end of time, or as long as we collectively exist,” I answered. Despite my emphatic response, the question is a good one because it underscores the inherent meaninglessness of the phrase “in perpetuity”…

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The Philanthropist as Villain

Some of the most nefarious villains in popular culture are philanthropists. The fabulous – and fabulously junky – Netflix series Lupin makes it clear. Philanthropists are smiling hypocrites with too much money and no scruples. Evil. In Lupin, the villain that bedevils the titular gentleman thief hero (played by the…

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When Private Foundations Die

Private foundations are believed to be durable entities.  Perpetuity is assumed.  Canada Revenue Agency (CRA) data shows, however, that 2,319 private foundations closed during the period 2000 to 2021. Growth in Private Foundations There are currently 6,213 private foundations registered in Canada.  The private foundation is the fastest growing category…

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Foundation Disbursement Quota Increase

  The 2021 Federal Budget announced the Government’s intentions to launch a consultation with charities about “potentially increasing the disbursement quota…beginning in 2022.”   Any increase of the disbursement quota (DQ) rate above the current 3.5% annual requirement will have significant implications for the charitable sector, foundations and donors.  Below is…

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One in Ten: Why Bequest Donors Don’t Inform Charities

One in ten.  That, according to charitable sector studies, is how many estate donors inform the charities in their will of their intentions.  While this ratio varies by charity it underscores a fascinating paradox.  Bequest donors trust charities enough to make them beneficiaries of their estate, but they don’t trust…

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Restricted gifts of real estate

When I was a young charitable gift planner, my charity was offered a cluster of islands on Georgian Bay.  Surrounding the 100-year-old family cottage were sheds, cabins and boat houses.  The donors had a vision: it would be a children’s camp. It was a stunning property.  Valuable, despite the sagging,…

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Cultural Property Donations Update

The charitable tax incentives for donations of certified Cultural Property – art and artifacts – is the richest in Canada.  Cultural Property donations are exempt from capital gains tax and can be claimed against 100% of the donor’s net annual income over up to six years. The incentive is part…

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Endowment Variations

COVID-19 has hit the charitable sector hard, and arts organizations face particular challenges. A recent article in The Globe and Mail about the Banff Centre described closed facilities, lost fundraising, cancelled programs, layoffs, deficits, resignations, and protests. The article also mentioned a request to endowment donors for “permission” to use…

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Residual Interest Gifts of Homes

Can you donate the residual interest of a principal residence to charity?  Absolutely!  The question, however, is not can it be done, but should it be done.  In most cases, the answer is no – especially for the charity. Structuring Options Let me address the structuring options first.  It is…

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