Providing opportunities to others is a pillar of philanthropy. If you’re fortunate enough to be able to give, it’s important to understand where your donated money is going, and how these funds will be used. Though writing one-off cheques are always greatly appreciated by charities, there is a more sustainable and efficient way to organize your philanthropic efforts. In this episode of What They Don’t Tell You, CEO of CWB McLean and Partners, Kevin Dehod, sits down with Denise Castonguay of the charitable organization Canada Gives to discuss their mission for philanthropists to establish tax-smart, high-impact foundations with the valuable insight of financial advisors. 

A Private Foundation is a legal entity that requires consultation from a lawyer before set-up, and a board of trustees, thus making the set-up process a potentially long and expensive one. Canada Gives provides donors with an easier way of setting up family foundations, with a Donor-Advised Fund.

Donor Advised Funds (DAF) are one of the best-kept secrets in the not-for-profit sector. It involves creating an account within a sponsored organization, such as Canada Gives. A DAF is able to be set up with far lower funds. This has proven to be helpful for many donors because it allows them to get invaluable advice from financial advisors along the way. This advice can be used to help plan future efforts, and to give the donor insight into why their money is best allocated to certain places. 

In reality, a DAF is more private than a Private Foundation, because it is not a legal entity. With a Private Foundation, everything must be reported to the CRA, which in turn, makes the information less private. 

To learn more about Kevin Dehod

LinkedIn: https://www.linkedin.com/in/kevindehod/

About: https://www.cwbmcleanpartners.com/en/about-us/our-team/kevin-dehod

CWB McLean & Partners: https://www.cwbmcleanpartners.com/en

To learn more about Denise Castonguay

LinkedIn: https://www.linkedin.com/in/denisecastonguay/

Canada Gives: https://www.canadagives.ca/