A survey conducted for BMO Wealth Management reveals that most wealthy Canadians give money to charities because they want to help their communities, not because they are looking for a tax break.
The poll asked Canadians with at least $1million of investable assets about how and why they give to charity. It reveals that 52% of wealthy Canadians are motivated by a personal connection to the organization. In 41% of the cases they donated after they conducted research on the charity and the cause it supports, and 35% said they considered family values and/or discussed the matter with their families.
Asked why they donate to charity (respondents could give more than one answer), 55% wanted to have an effect on their communities and 50% simply wanted to "give back", compared to 21% who said they made the donations in order to reduce their taxes.
How much do wealthy people give to charity? The poll found that 83% of respondents gave $10,000 or less in the last 12 months, while 8% gave between $10,001 and $100,000, 2% donated $100,001 to $250,000, 2% gave $250,001 to $1,000,000, and 4% made a contribution of more than $1 million. While cash is the most popular method of giving, cited by 87% of those surveyed, wealthy people also volunteer their time (54%), make gifts in kind (35%), and donate art or property (20%).
If you would like to explore your options for making a charitable contribution as part of your estate plan, talk to a Four Points Financial Solutions advisor today by calling 1-866-235-0004.