Donor advised funds are not trusts
A common misconception about donor advised funds is that they are trusts, charitable purpose trusts. Although donor advised funds have trust-like features, most are not trusts. March 2025
The Two-Charity Structure
Canada has two basic types of registered charity: charitable organizations and foundations. These charity types are often paired to work together in a complementary fashion – ying and yang – to achieve shared purposes. This article is a short primer on the prevalence of this structure and how it can be used for charitable planning. January 2024
Donating internationally
In 2022, new rules were introduced in the Income Tax Act that enable Canadian charities to make grants to non-qualified donees. To translate, these are organizations that are doing charitable work but are not registered charities in Canada. These rules are now clarified with a new CRA Guidance. Greater flexibility is coming, but donors need to proceed with caution. February 2023
Testamentary Charitable Trusts
From the 19th century to about 1990, the testamentary charitable trust was an important estate planning structure. These trusts are part of the will and are funded after death from estate assets. But they have been replaced by more modern and effective charitable planning structures. October 2023
Charitable purposes and estate donations
Estate planning is an exercise in time travel. It is impossible to predict the future, especially when the time gap between planning and death is often decades. Fast forward 25 years, a charity may not exist when the estate is distributed.
Combination Gift Plans
Combining estate plans and lifetime financial plans can be challenging, especially for individuals who have dedicated a significant portion of their estate to charity, for example 50% or more. Wills are often drafted independently of lifetime financial plans. The drafting lawyer may not ask the question “is it prudent and advantageous to start giving major gift during life?”. In certain situations, there are significant tax and philanthropic benefits to start estate donations during life.
The Estate Donation Loop
It is one year after the new estate donation rules were introduced and the practical implementations are beginning to emerge. With the post-2016 rules, a twist arises when the residue of the estate is split between charity and individual beneficiaries. This scenario creates a gift that keeps giving.
Does Donor Recognition Create Obligations?
Is a donor obliged to provide ongoing support to a charity after a building or facility is named in their honour? The legal answer is “no”. Naming, however, may stir up complex feelings of ownership and hope, which often lead to misunderstandings — even after the donor is dead.
The Endowment Effect
People value objects more when they own or possess them – or at least when they presume ownership. In cognitive psychology this phenomenon is called the “endowment effect”. It’s a concept that was seemingly invented to describe a lot of behaviour related to estates, philanthropy and foundations. It’s time to give it a name.
Robert and Signe McMichael’s Complicated Legacy
Robert and Signe McMichael, the namesake of the McMichael Canadian Art Collection, were savvy art collectors who made some painful philanthropic and estate planning mistakes.
Intrinsic v. Extrinsic Giving
There is a fundraising truism that says you don’t get money unless you ask for it. But estate planning professional know that’s not always true.
Donate to Eliminate Clauses
Last week I received a call from a client who wished to include a “donate to eliminate” clause in his will. His goal is to wipe-out all taxes in his estate by giving just the right amount to his favorite charities…
Esther the Wonder Pig and Animal Sanctuaries
I am fortunate to work with many animal lovers on their philanthropic estate plans. They are interested in a wide range of animals and issues. A recent article in The Walrus magazine about the animal sanctuary, registered charity and social media phenomenon Happily Ever Esther Farm Sanctuary highlights a number of key estate planning and charity issues.
Donations from Spousal and Other Trusts
The issue: how can a testamentary spousal trust or an alter ego trust be drafted to enable a residual gift to charity be eligible for a tax receipt?
Estate Donations to Government
The title of this blog may provoke laughter, or perhaps, just head-shaking disbelief. But estate donations to various levels of government do happen. The trick is to ensure that the donor’s intentions are carried out.
Are Wills an essential service?
When facing the unknown we crave order and clarity. An updated will provides both.
Unrestricted Giving — In Life and Estates
An “ah ha” of COVID-19 is the importance of unrestricted giving to charity. Donors, foundations and charities are realizing that excess conditions may hinders responses to urgent social needs. Will this insight last beyond the pandemic? And does it apply to estate donations?
Valuing In-kind Donations
There is a saying among charitable gift planners: “beware of in-kind property donors who show up with valuations in hand.” In other words, eager donors and their gifts may be too good to be true. This is folk wisdom that points to a serious issue. Donors, executors and charities often struggle with in-kind donation valuation. Who commissions and pays for in-kind donation appraisals, the donor or charity?
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.
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.