Getting more out of your charitable giving

By Marvi Ricker

Charitable giving has always been an important part of social history, and the spirit that inspires it is universal. The benefits of making a charitable donation are countless, from helping those in need to the personal satisfaction we feel when supporting a cause.

Often this benevolence happens on the spur of the moment, in response to an immediate need.  A survey conducted for the BMO Retirement Institute reveals 44 per cent of baby boomers said they donate on impulse, without either a plan or a budget, and only one per cent donate to charity as part of a plan or budget with the help of a financial advisor.

But now boomers, a generation that’s been socially aware and involved, are taking a closer look at their charitable involvement. They’re examining why they give, what they give, to whom they give, when they give and how they give – both through financial donation, and through volunteering.

Like their parents before them, boomers are givers. But because they are better educated and wealthier, they are much more engaged and involved in their giving. That’s why tools like the national Vital Signs program are so critical in today’s philanthropic landscape. Reports about how our communities are faring provide boomers, and other potential donors, with the information they need to make smart and savvy decisions. While their parents simply entrusted charitable organizations with their financial donations, boomers want to be active in the causes they believe in and the philanthropic choices they make.

Although the Retirement Institute survey shows that many boomers are giving on impulse, strategic giving requires as much planning as you would expect to put into saving or investing.

Vital Signs provides a catalyst to get the planning process started by considering some of the issues and opportunities in our communities. Donors also need to conduct a thorough, disciplined and strategic examination of goals, objectives, interests and options. 

A financial advisor can both identify and help clients understand all the options, to assist them in making informed charitable decisions and to ensure that those dreams are realized – during their lifetime and in perpetuity.

Marvi Ricker is Vice-President and Managing Director of Philanthropic Services for BMO Harris Private Banking