Planning with purpose: How to ensure your wealth reflects what you believe

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We’ve had the privilege of walking alongside families and business owners who’ve built something meaningful – and are now thinking about the legacy they want to leave. Often, that legacy involves more than financial security. It’s about using wealth to reflect values, support community, and shape the future.

That’s where purpose-driven planning comes in. Whether you're new to charitable giving or looking to refine your approach, here are five thoughtful questions to help you align your wealth – and the impact it can create – with what matters most to you.

1. What’s behind your desire to give?

The first step in any giving plan is asking yourself: What’s motivating me?

For some, it’s gratitude – for the success they’ve had and the support they received along the way. For others, it’s about creating opportunities for the next generation, giving back to their community, or honouring a personal cause or family tradition.

Taking the time to reflect on what drives your generosity helps ensure your giving is both intentional and fulfilling.

2. How does philanthropy fit into your broader plan?

Many people approach giving as something separate from their financial plan. We think it should be the opposite. Your generosity should work in harmony with your tax, retirement, and estate strategies, not against them.

For example:

  • Are you maximizing the tax benefits of your donations?
  • Will your giving affect your retirement income or estate plan?
  • Are there ways to structure giving that allow you to support a cause and benefit your family?

With the right structure, you can do all of the above.

3. Are there better ways to give than just writing a cheque?

While writing a cheque is straightforward, there are other methods to maximize the impact of your donations, including:

Donor-advised funds (DAFs)

DAFs are one of the fastest-growing forms of charitable giving. A 2023 report from KCI Philanthropy shows there are more than 20,500 of them in Canada. According to the same report, giving into DAFs accounts for almost 10% of all donations claimed for tax purposes.1

You can think of a DAF as a charitable investment account. Here’s how they work:

  • You donate cash, securities, or other assets into the fund.
  • You receive an immediate tax deduction.
  • Your donation is invested to provide funds for grants, which you recommend to your chosen charities.

DAFs are flexible, low-cost, and allow families to build a giving rhythm. This can be especially helpful if you want to involve your children or grandchildren in the process – and build a shared sense of impact.

Private Family Foundations

For families with larger charitable goals, a private foundation offers even greater control. Private foundations are more complex and expensive to establish than a DAF – they can take up to a year or more to register with the CRA, and require the resources to establish a board and possibly hire a team to run day-to-day operations. However, a foundation can be a powerful vehicle for long-term giving and legacy.

Foundations allow you to:

  • Define your own charitable mission and areas of focus.
  • Appoint a board – often made up of family members – to oversee grant-making and strategy.
  • Operate with complete transparency and structure.
  • Directly manage assets and grant distribution schedules.

Foundations can also create opportunities to educate and engage multiple generations around giving, responsibility, and long-term purpose. We can help you evaluate whether a DAF or foundation is the better fit, taking into consideration goals, governance, complexity, and tax considerations.

Bequests

A bequest is a gift made through your will or estate plan.

It’s one of the easiest and most common ways to leave a legacy without impacting your lifestyle or cash flow now. You can:

  • Leave a specific dollar amount
  • Gift a percentage of your estate
  • Name a charity as a beneficiary of an RRSP, TFSA, or life insurance policy

Bequests can reduce the taxes payable by your estate, helping preserve more wealth for your heirs and your cause.

4. Have you talked about giving as a family?

Philanthropy is an opportunity not just to give, but to teach, engage, and connect across generations.

We encourage families to involve their children and grandchildren in giving decisions. This might look like:

  • Hosting a family meeting to define shared causes.
  • Creating a giving plan or calendar together.
  • Assigning roles in managing a DAF or foundation.

We can help facilitate these conversations. They’re not just about money – they're about values, identity, and vision.

5. Is your giving plan built to last?

Your giving doesn’t have to be perfect. But it should be intentional and adaptable.

As your life evolves, your capacity and interests may shift. So might your charitable priorities. That’s why we recommend reviewing your plan regularly, and ensuring it’s still aligned with your financial situation and your goals.

We don’t believe in one-size-fits-all philanthropy. We believe in plans that reflect you: your story, your family, your community, and your purpose.

Let’s talk about the “why” behind your wealth

Giving is deeply personal. For some, it’s rooted in faith or family. For others, it’s about gratitude, justice, or opportunity. Whatever your reason, we’re here to help you turn that intention into a clear, confident plan.

Whether you’re thinking about setting up a Donor-Advised Fund or foundation; updating your will; or simply want to start the conversation, we’d be honoured to help bring clarity and confidence to your giving – and the wealth impact you want to create.

Sources

1. Influence, affluence & opportunity: Donor-advised funds in Canada. May 2023. KCI & CAGP Foundation. https://www.cagp-acpdp.org/sites/default/files/dafs-in-canada-kci-cagp-report-may-2023.pdf.  

The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.