A word from FGM – October 2024

Last month, the Foundation team held a webinar on how to create an endowment fund and to plan charitable donations. I’d like to start by thanking our three panelists, who generously shared their knowledge and experience with us: Ruben Antoine, CFA, CPA, CA, portfolio manager at Tulett, Matthews & Associates, and creator of a fund at the Foundation; Laetitia Shaigetz, president of philanthropy consulting firm Épisode; and Diane Tsonos, LLB, TEP, tax partner and lawyer at Richter, and member of the FGM Board of Directors.

I strongly encourage you to watch the recording of the webinar [presented in French]! Here are some of the important lessons I want to highlight from this presentation:

  • We are currently in the midst of the largest intergenerational transfer of wealth in our history. At the same time, needs are just as immense. It is critical that we ensure this transfer benefits everyone to the greatest possible extent, not only on a societal scale but also within our local communities and our families.
  • Generally speaking, your advisor (portfolio manager, financial planner, tax specialist, etc.) has a vital role to play in helping you achieve your philanthropic and financial objectives. If you have a project in mind, talk it over with the professionals around you! They hold some of the keys to making it a success.
  • Creating and directly contributing to an endowment fund offers the same advantages as setting up a private foundation, but without the drawbacks in terms of costs, wait times, and legal and administrative hassles.
The advantages of donating
  • Some types of donations offer significant tax advantages, thus reducing the real cost to you. Even a relatively modest net donation can have a major impact. In some cases, the rules allow you to both reduce the real cost of your donation and your total tax bill. It’s definitely worth looking into!
  • Is it better to donate after your death or during your lifetime? One advantage of donating after death is that it will reduce your estate’s tax bill. However, a well-planned living donation can maximize these savings for your loved ones and for the causes you care about.
  • By strategically centralizing and planning your donations, such as through a community foundation like the Foundation of Greater Montréal, you can give more and create greater value with the same money. Given enough time, a single major donation will often have greater impact than a series of one-off donations of an equivalent total value.
Pass down your values and leave your mark
  • As endowment funds exist in perpetuity, they allow you to support the causes and people that matter to you long into the future. They can also serve as a tool for financial and philanthropic education for your family and loved ones. By involving them in the decisions surrounding your fund, you can pass on your values, teach them financial management, and demonstrate the benefits of giving back to your community.
  • Creating a fund can also be a remarkable and lasting way to commemorate an achievement, highlight an important life event, or honour the memory of a loved one.
  • There are different types of endowment funds to choose from. Your fund can be set up for a fixed term or in perpetuity, depending on your philanthropic goals.

There you have it! Each person’s case and story are of course unique. Your options ultimately depend on the resources at your disposal and what you wish to do with them. The possibilities are (almost!) endless. If you feel inspired by this information and are looking to make your philanthropic vision a reality, or if your curiosity has been piqued and you have questions, contact us to start the discussion!

Until next time, thank you!

Linda Tchombé
Director, Philanthropic Development
Foundation of Greater Montréal