Charitable Giving through your Will & Estate
Most people believe in the importance of giving: giving to those in need; giving back to their community; giving to a cause they value or to a group that conducts important work. That said, only 17.4% of British Columbians made a charitable donation (of any kind) in 2021.[i] This decline in charitable donations could be due to rising costs of living, household spending restrictions stemming from the global pandemic, or a general feeling of uncertainty about how to donate in a way that will make your dollar “go the farthest”. So, if any of these reservations apply to you, we’re here to offer a solution and some guidance.
Charitable donations and gifts made through your Will can have a huge impact for someone or something in need. Leaving money to charity in your Will (Canada) can offer a perfect way for you to (1) make a charitable donation, (2) receive tax benefits for your estate[ii], and (3) leave a lasting and impactful legacy.
1. Choosing a Charity / Determining your Charitable Beneficiary(ies)
Decide what is important to you. What are your personal values? What kinds of causes do you support? Are there underfunded or underserved areas that you think could use your help? If you’re having trouble narrowing it down, start with bigger concepts or categories. For example:
- Animals
- Children
- Education
- Environment
- Legal Aid
- Human rights
- Health
- Homelessness
- Medical research
- Local Community
- National initiatives
- International Aid
- Victim Services
- Senior Support
- Arts & Culture
Once you decide on a general area of interest, you can further narrow your scope within that category, based on your own personal preference and values. For example, if you chose “health” from the categories above, you may wish to support a specific area illness or a certain healthcare system and could narrow your charitable donation based on organizations that prioritize those initiatives, such as the Rare Disease Foundation, Canadian Cancer Society, Alzheimer Society of BC, or the Fraser Valley Health Care Foundation. Alternatively, you can look for ways to support charitable organizations across a few different categories of interest. For example, if you’re interested in supporting your local community and you value education, you might consider leaving money to charity in your Will (Canada) by giving to your local school district foundation. The possibilities are infinite, and you can choose to support one or more charities or organizations.
Need help finding specific charities (including Societies and Foundations)?
- Canada Revenue Agency (CRA) keeps a list of all registered charities on their website.
- More interested in supporting local? The BC provincial government keeps a list of charities, organized by region, at their website.
- For a list of Metro Vancouver (including Langley) charities, click here.
Pro Tip: Foundations receive and invest donated funds, using the income from investments to support a broad range of initiatives and charities. In this way, supporting a Foundation may be an impactful way to cross-support causes that are important to you but may be in different categories.
2. Consider your Charitable Gift
Once you’ve decided what causes you want to support, you can start to consider the type of gift that you want to give.
When people hear the word “donation” they often think of money. It’s true that money is helpful (and often comes with added tax benefits for your estate), but there are some local charities with smaller budgets that may be thankful for other kinds of gifts as well. For example, would furniture, electronics, or other household items be useful to a homeless shelter, senior centre, or hospice? If you’re not sure, you can reach out directly to the charity to obtain additional information.
Another consideration for your charitable donation in your Will is if you want to attach a specific use to the donation. For example, if you leave a bequest to an animal rescue society, you may specify that money you donated is to be used for polar bear rescue only (to the exclusion of other animals that the society supports). However, if you are considering a restricted donation, you should know that the charity is bound to follow your Will and that, if the money cannot be used for your stated purpose (ie: you made your Will 20 years ago and the charity no longer supports that initiative), your gift to the charity will fail. Therefore, it is commonly considered beneficial to leave donation for ‘general purposes’ to your named charity, or, at least, to allow the board of directors to change the purpose of the gift, if required.
3. Do your Due Diligence
Research, research, research! We never said gift-giving was easy… but the time and effort is worthwhile when you know that your charitable donation will be appreciated and put to good use.
- Mission statement
- Goals and values
- Causes they support (and what makes their projects and initiatives successful)
- Operating budget (how much of your gift is going to the charity’s overhead and staff vs. the actual cause that you intend to support?)
Start by visiting the Charity’s website to gather basic information.
If required, contact the charity directly to ask questions. You can also conduct further research using Charity Intelligence (a resource for information about Canadian charities) or via a quick Google search (to see what others are reporting about that charity).
Pro Tip: the legal name and charity registration number matters! Make sure that you leave your charitable donation to the right entity; check the charity’s website for their full legal name and charity number. Krische & Co. Notaries can assist you with your estate planning and with verifying charitable organization names and numbers.
Summary: Charitable Donation in Will
- Donating to charity after death by leaving money to charity in your Will (Canada) can have a lasting impact and can have tax advantages for your estate. (Consult your accountant for tax advice and planning).
- When choosing a charity, consider your values and the causes that you want to support. Then, research your charity to ensure that your charitable donation will be used in a way that will align with your priorities and values.
- Contact your charity directly and consult additional resources (CRA website, BC government website) to find registered charity names or to search for local charities by region.
- Contact your local BC Notary to get started with your estate plan and Will drafting.
[i] Fraser Research Institute, December 2023 Bulletin: “Generosity in Canada, The 2023 Generosity Index.”
[ii] Consult your accountant or tax lawyer for tax advice.
