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At this time of the year, the December 31st tax deadline for charitable donations looms large. This is especially true for clients with a major tax event during the year, such as a business sale or perhaps a pending exercise of stock options. Often the client is considering an exceptional charitable donation, or perhaps establishing a private foundation, but there is no time to sort out the details. Aqueduct Foundation has a solution. As its name implies, the Foundation serves as a bridge...

While research on Canadian charitable donations ranks tax as a secondary motivator for giving, it can still be an essential trigger. This is especially true when the donor is facing a major tax event. For example, the sale of a business or the expiration of employee stock options are events that prompt significant gifts. Simply, the larger the tax bill the greater the incentive to consider giving. Charitable giving is not, of course, just a tax strategy. The donor has to decide what to...

The current conception of a philanthropist is a billionaire with a bold vision to change the world. It is almost as if they were born to the role. The reality for many philanthropists is somewhat different: philanthropy sneaks up on them later in life. These are the accidental philanthropists. Accidental philanthropists, to be clear, are no less purposeful or focused than the philanthropists of the popular myth. They are “accidental” because of the way they arrive at the choice to be...

There is rarely just one life event that triggers philanthropy. Most significant lifetime gifts depend on a combination of life stage, wealth, and tax events overlaid on a base of strong values. A rarely discussed set of circumstances is an inheritance received after age 65. Inheriting money later in life can provoke unexpected feelings. For many, the money comes too late to alter their way of life or be considered for consumption. For others, an inheritance, from a sibling or cousin or even...

There are two main challenges when donating private company shares: tax-effectiveness and the donor's trust in the receiving charity. The question of trust is why most contemplated gifts of private company shares fail. Let’s expand on these two points. 1). Tax effectiveness is a factor for a couple of reasons. First, unlike gifts of public securities, private shares trigger a capital gain, which reduces net tax savings. Second, under the non-qualifying securities rules, a donor must be at...