FUNDING matters inc - Charitable Giving through Estate and Philanthropic Planning.

Happy New Year! Our Top 10 ways to welcome 2012

2012-01-03T13:10:00.000-08:00

2011 was filled with promise and potential and in 2012 we're prepared to act and realize the tremdous opportunities the new year will provide.

It is a season of reflection and change, plans and goals, and of course top ten lists.

The FUNDING matters Inc. Top 10 ways to welcome 2012:

10. Make a few resolutions that you can keep, e.g. Build charitable giving into your financial plan or have more wine with dinner.

9. Plan to quit doing that thing you do… you know the one that drives everyone crazy.

8. Reduce your taxes, while supporting your favourite not-for-profit, instead of complaining about all the taxes you pay.

7. Ask your financial planner about the differences between giving gifts of assets vs. gifts of cash, and for a laugh, have them explain the yield on mutual funds.

6. Quit smoking, start working out and eat healthier. Clichéd?

5. Budget a specific dollar amount or a percentage of your assets to a not-for-profit organization for charitable giving.

4. Prepare or update your will or estate plan to include charity and/or Bill Petruck.

3. Plan to break some resolutions, that way, when you fail to keep them you really have succeeded.

2. Find a charity or two that appeals to you, and help them out. Money is good, volunteering is good also, and both are excellent.

1. Be grateful. Be happy. Keep smiling.

The Staff at FUNDING matters Inc. want to wish you a Happy New Year and all the Best in 2012!

Thank you, Merci, Aliquam, Dankie, dank u, salamat, þakka þér, Tack, Gracias, ありがとう, Спасибі

2011-11-24T10:19:00.001-08:00

It is Thanksgiving for our friends south of the 59th parallel, and we thought it would be an opportune time to re post our staff list of organizations we are thankful for. Grab a box of tissues because this might get emotional (and inspiring)!

Sarah Burd – Campaign Associate: I am thankful for the Jane Goodall Institute of Canada, because it champions the causes I care deeply about. I studied anthropology in my undergrad and I have always admired Jane Goodall for her groundbreaking research with chimpanzees. I have seen her speak twice and even had the opportunity to meet her, albeit briefly, to snap a picture with her. I find she is a kind, brave, and passionate scientist who is fearless and determined to protect animals (especially chimpanzees), the environment and spread the word to save both throughout the world. I am proud to donate to the Jane Goodall Institute of Canada, where my gift goes to support the Tchimpounga Sanctuary, a place where orphaned chimpanzees are able tolive healthy and happy lives.

Jane Goodall’s life and the work she continues to do through the Jane Goodall Institute of Canada inspires me continually. Learn her story and I am sure you will be inspired too.

Stephen Lavoie – Director of Business Development: Two years ago this October, a baby boy took his first breath and opened his tiny, newborn eyes to this world. He was gently laid on his mother’s chest for a few precious moments before being whisked off for the first of many lifesaving procedures. A few days later, baby Samuel was prepped for a six-hour open-heart surgery with a largeteam of cardiologists. His parents are close friends, and his story is a miracle I am thankful for.

Sammy’s mother recalls, “From the moment we found out what was wrong with Sammy when he was inside my tummy, they were great. The nurses and doctors in that unit are amazing; they explained all of the medical terms and procedures to us in full and made sure we understood everything that was happening to our baby. They told us why they did everything and what every medication did that he was having. The nurses are angels, they make being at SickKids bearable. They are kind and informative and they snuggle your baby when you have to step away to eat or sleep. They make it so you never have to worry about your baby when you are away from them. SickKids is truly one of my greatest blessings.”

I am thankful for SickKids! Over 100,000 patients are seen every year at the Hospital for SickKids, which provides a full range of medical and surgical care for children up to the age of 18. With a philosophy focused on family-centred care, SickKids works together with patients and their families to achieve the best outcome for children.

Sammy is alive today because of SickKids, and I am thankful for that.

Tina Holly – Web Designer/Translator: I am thankful for the TEACH (Teens Educating and Confronting Homophobia) program of Planned Parenthood Toronto. I was a volunteer with TEACH for several years as a youth. Volunteers facilitate workshops at schools and group homes to raise awareness about homophobia and LGBT issues in an effort to fight discrimination. TEACH aims to fight discrimination by engaging workshop participants in discussion and personal stories. TEACH is powered by volunteers and is always looking for both LGBT and straight-ally volunteers aged 16 to 23 to facilitate workshops.

Wendy Tran – Director of Information Technology: I love to run and I've done some crazy runs these past few years, half-marathon, full marathons, 100km hike, warrior dash, now, for a true test of endurance, I am participating in the Walt Disney World Full, Half & Goofy Marathon. It is a 39.3-mile (62.88 km) event held over two days. I will run the Half Marathon on Saturday (Jan 7, 2012), followed by the Marathon on Sunday (Jan 8, 2012). For this event, I will be a part of Team in Training, and will be fundraising on behalf of the Leukemia & Lymphoma Society of Canada.

The Leukemia and Lymphoma Society of Canada is the world's largest voluntary health organization dedicated to funding blood cancer research, education and patient services. They are an established organization that has been around for over 60 years - founded in 1949. Contributions made to The Leukemia & Lymphoma Society of Canada not only aid the quality of life for those battling with leukemia, lymphoma and myeloma, but also go towards funding for lifesaving research, education, and services that will give help and give hope to thousands. In Canada, there are over 90,000 people living with, or in remission from, a blood cancer. 15,920 Canadians will be diagnosed with a blood cancer in 2011; or someone every 33 minutes. 6,950 Canadians will die from a blood cancer this year; or one person every 76 minutes.

I am thankful for my legs that carry me and the work that The Leukemia & Lymphoma Society of Canada is doing to abolish blood cancers.

Do what you love and love what you do!

2011-11-08T12:15:00.000-08:00

A Quindecennial anniversary is celebrated after 15 years. 1997 was a year of memorable events, some weremember in fondness and others we recall with reverence.

U.S.President Bill Clinton is inaugurated for his second term;
ConfederationBridge linking Prince Edward Island with mainland New Brunswick opens;
Diana,Princess of Wales dies in a tragic car accident;
Thefirst color photograph appears on the front page of the New York Times;
MarsPathfinder lands on the surface of Mars;
Thefirst supersonic land speed record is set by the ThrustSSC team from the UnitedKingdom;
InOttawa, Canada, representatives from 121 countries sign a treaty prohibitingthe manufacture and deployment of anti-personnel land mines;
Majormovie releases included Titanic, Men in Black, Tomorrow Never Dies, Air ForceOne, and The Full Monty; and
FUNDING matters Inc. is founded with a mission tocreate a sustainable culture of philanthropy by advancing best practices inclient environments.

FUNDING matters set out tofind a new way to transform non-profit organizations and empower those whosupport them. As we celebrate our Quindecennial anniversary, and reflect on thepast 15 in business, we have a lot to celebrate. We have seen our team expand to includecreative minds and passionate people, who develop engaging programs that haveraised over $200,000,000 towards national and community organizations andcharities within the social innovation sector.

As part of our celebration,we are excited to announce the conception of The Giving Man animation. TheGiving Man encourages the act of charitable giving and philanthropy, andadvocates for acts of kindness, good will, and humanitarianism through thesimple expression of “Give”. You can get involved and spread the message byfollowing The Giving Man on Twitter @TheGivingMan.

We are also excited toannounce the re-launch of our website www.fundingmatters.com. The re-developed FUNDING matters website wasdesigned and implemented 100% by our creative team of technology experts andconsultants. We hope to share the best practices, successes, and contributionswe have collaboratively achieved while working with first-class clientele.

How to make the most of your donation dollars

2011-10-31T12:23:00.000-07:00

BY: TRALEE PEARCE

From Monday's October 31st Globeand Mail

Every year, you give aportion of your earnings to charity. But how much thought do you give to whereyour money goes? Do your donations reflect your values? Or do you tend give toa mishmash of causes, from your co-worker’s walkathon for animal shelters tothe international child adoption program you saw on TV?

Where to start

Regardless of the amountyou give, it can be handy to think like a wealthy dowager. Advisers to the richhelp them plan charitable giving just as precisely as their investments.

“Strategic philanthropy,”as it’s called, is the opposite of waiting until you look at your tax return tosee your ad hoc charity giving.

“It’s good to take a stepback and think, even if for only 10 minutes, is that the online charity youwant to give to or the cheque you want to write?” says Terry Smith, who steerswealthy clients, families and foundations through their charitable giving atPhilanthropic.ca “You ask yourself, ‘What do I want to accomplish? What do Ibelieve in? What’s important to me?’ ” says Tom McCullough, who advisesfamilies as the president and chief executive officer of Toronto’s NorthwoodFamily Office.

Values, interests and need

Before advisers start to match their clients to specific charities, theyplay the role of psychologist.

Ms. Smith will walk herclients – who donate from $200,000 to millions a year – through variouschecklists, asking them to weigh the importance of, say, innovation comparedwith tradition, or community compared with personal growth. How important isdemocracy? Justice? Family?

Then, she’ll show them alist of about 50 generic fields of charitable work, including economicdevelopment, ethnic communities, poverty and health, to rank according to theirinterests.

Mr. McCullough says,ideally, once an adviser knows more about what a client is passionate about, hecan then “twin it with the world, where there is need.”

For some, it’s more aboutmaking an impact than it is about the particular cause. Mr. McCullough saysBill Gates wannabes are drawn to groups such as the U.S.-based ArabellaPhilanthropic Investment Advisors, which publishes regular reports on“high-impact giving opportunities.” Its recent picks: charities aimed atcurbing childhood obesity in the home and in child-care settings.

Need more help?

Ms. Smith says many clientsstill need a nudge to focus on what they care about. She’ll ask more directquestions: Has someone close to you been affected by an illness? Would yousupport a charity in memory of a loved one? Do you want to support localprojects, or initiatives across the country or in other countries? What areyour friends supporting? Do you share any of their interests?

Put it in writing

Write up a missionstatement, just as any foundation might do. “It’s a good idea to write it down– it’s a good dinner table conversation: ‘What do we believe in? What in ourhistory is important?’ ” Mr. McCullough says.

He says the list ofpossible motivations is endless. Guilt. A family role model who has alwaysgiven. “Or some event that forces you into those existential questions ofwhat’s enough and what’s important.”

How much to give?

This is where you have togo with your gut. In Canada, the median annual donation is $250. Can you dobetter?

Mr. McCullough says manypeople use the traditional church tithe figure of 10 per cent of income –either gross or net.

There’s also the concept of“enough,” he says. “People will say, ‘X is enough money for me,’ then put anymoney beyond that into a foundation for charity.”

How many charities?

The experts offer mixedadvice when it comes to deciding on whether to pool your donations or spreadthem around.

Bri Trypuc, head of donorservices at the Toronto-based charity analysis organization CharityIntelligence Canada, says it’s risky to give to only one charity, as thatorganization may capsize, make poor financial decisions or simply beineffective.

Sandra Miniutti,vice-president of marketing and chief financial officer of the U.S. charityevaluator Charity Navigator, takes an opposing view. Making larger donations toa smaller number of charities allows them to be more effective, she says.Moreover, it takes time to research and vet charities to make sure your moneyis put to good use. “If you’re giving to many different charities, you’reprobably not doing a whole lot of research,” she says, “… so it’s more likelyyou’re going to wind up making a more risky philanthropic gift.”

If you’re donating $1,000 ayear and giving to $50 to 20 groups, that’s probably too many, Ms. Smith says.“Ask yourself what’s the best use of my $1,000? Do I give $1,000 to one groupor maybe two?”

She says some people thinkin pie charts. They may give 50 per cent of their charitable dollars to theirfavourite cause, then leave the other 50 per cent to distribute between ahandful of others, including some funds that can be set aside for spontaneousgiving. Others will find themselves equally passionate about protecting animalsand discovering a cure for breast cancer, so they’ll divide it 50-50.

Experts urge donors to thenresearch the charities they’re interested in – everything from their financialstatements to the percentage of their revenues spent on fundraising.

What about spontaneousgiving?

Consider setting asidemoney for spontaneous donations, such as charity events and disaster relieffunds. Ms. Trypuc suggests in addition to your primary charities, you shouldassign a percentage of your giving to support family, children and friends inraces, walkathons and other such activities, and another for “entertainmentgiving,” such as for charity golf tournaments, balls and dinners.

Mr. McCullough says helikes to do this himself, not because he has a specific interest in friends’and family members’ causes, but because “I believe generally in encouragingvolunteerism.”

If you’d rather trim thatkind of spending, having a solid plan can help you let people, including randomcharity canvassers, down easily: “You can honestly say, ‘Great cause, but I’vegiven for the year. Look me up next year.’ ”

Giving to disaster reliefefforts is, similarly, a personal choice. Mr. McCullough says some people stayaway from giving after tsunamis and earthquakes, being more inclined to lookfor causes that aren’t splashed across the news. But Ms. Smith points out thatif you do choose to make these sorts of donations, look for ones thatgovernments will match or double, so your donation goes further.

How to part with your cash?

For most of us, a cheque oronline donation will be the way to go, either annually or monthly – and givingenough to get a tax receipt comes naturally.

For some, it may be themain motivation. “A lot of people give, in part, because it’s a tax decision,”Mr. McCullough says.

Most individuals donate outof their after-tax income, says William Petruck, president and CEO ofToronto-based fundraising consultancy FUNDING matters Inc. But, he says, “thedollars that a donor’s giving should come from the most highly taxable area intheir portfolio.”

This means giving from anappreciated asset, such as capital gains stock, mutual funds, land or a pieceof art, which would reduce the taxable component of the asset, he says. Notonly does this maximize your giving ability, it allows you to foster a long-termrelationship with the charity. Financial advisers, lawyers and accountants canhelp with this.

http://www.theglobeandmail.com/life/giving/how-to-give/how-to-make-the-most-of-your-donation-dollars/article2217484/singlepage/#articlecontent

How do I prepare for a Zombie Outbreak?

2011-10-24T14:58:00.000-07:00

On October 22^nd Toronto, Ontario was overrun witha huge horde of over 7000 zombies lurching and growling about the city. So, in honor of the 2011 Toronto Zombie Walkthat was held on Saturday we have created the FUNDING matters top 10preparations for the Zombie Apocalypse.

10. Figure out who your real friends are, since most of themwill turn on you once they are living dead!

9. Ensure your last will and testament is up to date, andyou might consider a zombie clause… “I hearby request limited power assigned tothe executor of my estate on the chance I become a zombie…”

8. Find a Financial Advisor who understands current issuesfaced by the undead.

7. Do your homework and watch the First Season of TheWalking Dead and Zombieland we also recommend Shaun of the Dead.

6. Stock up on Twinkies, canned beans McDonald French Fries andother items with no expiration dates.

5. Find a reliable car that is good on gas, and preferablyhas plexi-glass windows, and always check the back seat.

4. Practice, Practice, Practice being a zombie, we suggest Atleast 15 minutes each day. Bill Murrayhas done some great work in this area.

3. Avoid cemeteries, old warehouses, basements, dark alleys,etc.

2. Support a good cause like neurological health charities,or disease prevention organizations.

1. Remember if someone you are with says “I’ll be right back”or “I better check out what made that spooky noise” there is a good chance theyare not coming back.

Happy End of the World day!!! Oh my what to do?

2011-10-21T10:24:00.000-07:00

When we heard the news about the end of the world, The FUNDING matters staff decided to share their thoughts.

Bill: Well, it's already tomorrow in Australia and they'retossing shrimps on the barbie and throwing back a Fosters. Do you hear that.........it's the sound of aTall Boy Fosters being cracked open right now!

Alicia: I would go tomy family cottage in Algonquin and eat dark chocolate smores, maybe… but thenagain it's kind of cold out right now… can we possibly do this next summer?

Stephen: The world was supposed to end earlier this year, butwas apparently postponed due to logistical issues. None the less, I began to ponder on thebest of end o’ the world music mix. It would have to include REM: End of the World,Johnny Cash: The Man Comes Around, Tool: Ænima, The Clash: London Calling, BlueOyster Cult: Don’t Fear the Reaper. Ohyeah, I’d probably - like Prince - party like it is 1999.

Wendy: Skip work, go home and spend time with family, and probably get a cat.

Sarah: She wasn't able to contribute to the blog today, when shefound out the world was ending, she began to weep uncontrollably and we werenot able to console her. I guess we will have to get her opinion tomorrow.

The End of the World... that's for losers. Make a difference and enjoy life!

What Will Your Legacy Be?

2011-10-18T14:17:00.000-07:00

There might be something missing from your estate plan –charitable giving. Do not fret though;it is easy to plan your estate while incorporating charitable giving and goodreason to consider it.

Recently, I spoke with a founding member of the JCCCFoundation Mark Matsumoto, CA, CFP, CPA, who also works as an Investment FundsAdvisor, about estate planning and charitable giving. He outlined important reasons to work acharitable donation into your estate. Thereare tax benefits to bequeathing a portion of your assets in your estate to charity.“By giving a charitable donation, it acts as a tax deduction on the final tax [ofyour estate]”, says Mark. This meansthat you may save more money by giving to charity through your estate plan thanif you choose not to. There is more to this strategy than saving money on taxes,such as leaving a legacy. As time passesand people plan their estate, they decide what is of value to them and oftencharity falls into this category.

Legacy becomes very important. “They want to build something, or know thatthey really contributed to a worthy cause”, explains Mark. If you have not considered working charitablegiving into your estate plan, it is never too late, since it should be updated periodically.When you do want to go down this route if you have not already, remember thatthe amount set aside for charity in an estate plan depends on the person,according to Mark.

Knowing how much to give to charity requires looking at yourfamily’s needs and your own assets. Whatis most important is to have a preliminary idea of what you want your estateplan to look like and then talk to your financial advisor. It is a process andthe role of your financial planner is to help you determine the best and mosttax efficient way to give to charity through your estate plan. The best day tostart thinking about charitable giving and having control of your future andyour legacy is today.

When it comes to donations “what’s the Magic Number?”

2011-10-12T12:54:00.000-07:00

I was meeting with an old friend that is actively involvedin philanthropy. He sits on boards,organizes successful golf tournaments and is an annual donor. During our candid discussion he mentionedthat he was always curious about one thing, when he is approached aboutsupporting campaigns how do fundraisers come up with “their number” in otherwords why do they put a number in front of me and how do they know it’s theright number for me?

I responded it is a complex cross-reference analysis ofdemographics information, previous giving levels and giving that others intheir situation have considered… well actually it is more like a gut feel.

This isn’t unique to only Not for Profits, BusinessWeek dida survey that shows 62% of People Make “Instinct-Feel” Decisions Most of theTime*. Anyone want to play rock paperScissors with your organizational goals and objectives?

How would you like to take "chance" out of yourfundraising program, and talk to your client/donor about their number? The mosteffective number that they could give to reduce their taxes, now and in thefuture.

If you would like to take the guess work out of fundraisingand major gifts let us know by requesting a demo.

*Source:BusinessWeek Research Services Base: 675 US and European business executivesand managers

Thank you, Merci, Aliquam, Dankie, dank u, salamat, þakka þér, Tack, Gracias, ありがとう, Спасибі

2011-10-05T10:53:00.000-07:00

For the first time, we, the staff of FUNDING matters, areguest posting on the blog this week for a special occasion. As Canadian Thanksgivingis upon us once again, we thought it would be an opportune time to share our stafflist of organizations we are thankful for. Grab a box of tissues because this mightget emotional (and inspiring)!

Sarah Burd – CampaignAssociate: I am thankful for the Jane Goodall Institute of Canada, becauseit champions the causes I care deeply about. I studied anthropology in myundergrad and I have always admired Jane Goodall for her groundbreakingresearch with chimpanzees. I have seen her speak twice and even had theopportunity to meet her, albeit briefly, to snap a picture with her. I find sheis a kind, brave, and passionate scientist who is fearless and determined toprotect animals (especially chimpanzees),the environment and spread the word to save both throughout the world. I amproud to donate to the Jane Goodall Institute of Canada, where my gift goes tosupport the Tchimpounga Sanctuary, a place where orphaned chimpanzees are abletolive healthy and happy lives.

Jane Goodall’s lifeand the work she continues to do through the Jane Goodall Institute of Canada inspires mecontinually. Learn her story and I am sure you will be inspired too.

Stephen Lavoie –Director of Business Development: Twoyears ago this October,a baby boy took his first breath and opened his tiny, newborn eyes to thisworld. He was gently laid on his mother’s chest for a few precious momentsbefore being whisked off for the first of many lifesaving procedures. A few days later,baby Samuel was prepped for a six-hour open-heart surgery with a largeteam ofcardiologists. His parents are closefriends, and his story is a miracle I am thankful for.

Sammy’s mother recalls, “From the moment we found out whatwas wrong with Sammy when he was inside my tummy, they were great. The nurses and doctors in that unit are amazing;they explained all of the medical terms and procedures to us in full and madesure we understood everything that was happening to our baby. They told us why they did everything and whatevery medication did that he was having. The nurses are angels, they make being at SickKids bearable. They arekind and informative and they snuggle your baby when you have to step away toeat or sleep. They make it so you neverhave to worry about your baby when you are away from them. SickKids is truly one of my greatestblessings.”

I am thankful for SickKids! Over 100,000 patients are seenevery year at the Hospital for SickKids, which provides a full range ofmedical and surgical care for children up to the age of 18. With a philosophy focused on family-centredcare, SickKids works together with patients and their families to achieve thebest outcome for children.

Sammy is alive today because of SickKids, and I am thankfulfor that.

Tina Holly – Web Designer/Translator: I am thankful forthe TEACH (Teens Educating and Confronting Homophobia) program of PlannedParenthood Toronto. I was a volunteer with TEACH for several years as a youth.Volunteers facilitate workshops at schools and group homes to raise awarenessabout homophobia and LGBT issues in an effort to fight discrimination. TEACHaims to fight discrimination by engaging workshop participants in discussionand personal stories. TEACH is powered by volunteers and is always looking forboth LGBT and straight-ally volunteers aged 16 to 23 to facilitate workshops.

Wendy Tran – Directorof Information Technology: I love torun and I've done some crazy runs these past few years, half-marathon, fullmarathons, 100km hike, warrior dash, now, for a true test of endurance, I amparticipating in the Walt Disney World Full, Half & Goofy Marathon. It is a39.3-mile (62.88 km) event held over two days. I will run the Half Marathon on Saturday (Jan 7, 2012), followed by theMarathon on Sunday (Jan 8, 2012). Forthis event, I will be a part of Team in Training, and will be fundraising onbehalf of the Leukemia & Lymphoma Society of Canada.

The Leukemia and Lymphoma Society of Canada is the world'slargest voluntary health organization dedicated to funding blood cancerresearch, education and patient services. They are an established organization that has been around for over 60years - founded in 1949. Contributionsmade to The Leukemia & Lymphoma Society of Canada not only aid the qualityof life for those battling with leukemia, lymphoma and myeloma, but also gotowards funding for lifesaving research, education, and services that will givehelp and give hope to thousands. InCanada, there are over 90,000 people living with, or in remission from, a bloodcancer. 15,920 Canadians will bediagnosed with a blood cancer in 2011; or someone every 33 minutes. 6,950Canadians will die from a blood cancer this year; or one person every 76minutes.

I am thankful for mylegs that carry me and the work that The Leukemia & Lymphoma Society ofCanada is doing to abolish blood cancers.

Bernanke’s Let’s “Twist” Again....On Second Thought.

2011-09-27T08:06:00.000-07:00

The plan to lower interest rates called,the Twist, is a bid to redirect the central bank’s balance sheet toward thelonger end of the Treasury curve. It is meant to stimulate the economy, and isan idea but not the solution that we need right now. What is required is to lower the unemploymentrate and get people working, give people the confidence to once again get backon their feet.

The best way to offset pressures on theGovernment is to have a strong Not for Profit sector. NPO’s play an important role in society fromgetting individuals working both in creating meaningful jobs that bettersociety in cost efficient ways and helping those in transition find theirway. The direct donation by individualsto charitable organizations in many cases goes right to the programs which helpcreate these employment opportunities.

If you have any capital gains at thispoint, and want to reduce your taxes and make a difference in society, look atdonating your taxable capital gains and adding to your favourite charitiesbottom line. You can keep their services going by employing their staff, andempowering them to make a difference in your communities.

Speak with your accountant or financial advisoror visit Giftabulator.com to find out how you can make an intelligent donationdecision with your taxable assets.

William Petruck, President and CEO FUNDING matters Inc.

1-800-856-1354 www.fundingmatters.com

When Can Taxation Be A Good Thing?

2011-09-21T12:35:00.000-07:00

In my yearsof experience as a fundraising consultant, the largest and most impactful giving has occurred when I provide a glimpse into the ideal approaches andsources to make a charitable gift which benefits the donor by reducing taxablecapital gains.

Examining thepotential for charitable giving either through annual, major gift or deferredgiving can turn a bad taxation situation into a positive one, Simplyillustrating how much tax an individual may owe could initiate the discussionabout funds from their taxable capital gains being directed to charity. Otherwise, depending on the cash flowrequirements, individuals can find themselves directing taxable assets fromtheir estates to charity.

Iffundraisers take the time to work with donors in exploring these giving scenarios,they can maximize the donors’ giving abilities and cultivate a positive andenduring relationship with them.

Once fundraisers realize the road to successis reached through much more than just a phone call, they can help transformtheir organization and the lives of donors.

William Petruck, President and CEO FUNDING matters Inc.

1-800-856-1354 www.fundingmatters.com

Getting Personal & Giving Good Advice

2011-09-14T13:07:00.000-07:00

Why You Should Talk to Your Donors - Now!

In my opinion there is never a bad time to talk to donors. They actually like hearing from you!

For some reason, talking to donors about tax efficient giving seems to be somewhat of a challenge. Most charity fund raisers don’t feel comfortable in presenting or discussing these types of scenarios to their donors. They feel that it gets too personal and it may scare the donor away. I realize that we have to walk a fine line when it comes to getting personal with donors.

But, by informing donors about tax efficient giving you may trigger the logical sequence of events whereby they may need to plan their estates or speak with their financial advisor about their current situations and come to the realization that they have taxable gains that can be used to support your cause. In speaking with donors the feedback from them is that information and scenarios helps them see the impact and benefits to their portfolios and their estate, financial and philanthropic planning.

According to HNW Inc., 40 per cent of high net worth individuals do not have an estate plan. These individuals are described as having over $5 million in investable assets and believe it or not - they don’t have an estate plan. I can be fairly confident in saying that, majority of these high net worth individuals if gently approached about the importance in planning their estates would find it easier to give thought to a major gift or bequest.

By investing in knowledge and tools which effectively illustrate and communicate the importance of planning and engaging professional advisors will greatly generate improved results.

William Petruck, President and CEO FUNDING matters Inc.

1-800-856-1354 www.fundingmatters.com

Talking To Your Clients About Philanthropy

2011-09-06T09:19:00.000-07:00

You Can't Take it With You

Everyone has been touched by charity one way or another in their lives. The volunteer spirit of giving time or money has helped shape our society and build our communities.

Since we are reminded of the adage “you can’t take it with you”, Churches, temples and synagogues represent some of the greatest giving annually, and it’s the members of these organizations who give and give generously. It is here that we first learn about helping your fellow man and that we need not live life in excess.

There is great truth as we conclude that you can’t take it with you, which brings me to why it is important to engage in meaningful discussions with your clients about the transfer of their wealth.

Actuarial tables tell us the probability of death at various ages. You or I could be that statistic at any point in time. The opportunity of not necessarily focusing on the statistics but the fact that individuals should focus on their estate plans is a positive approach to dealing with the issue.

A great way to engage in the discussion of philanthropy is to understand the views of your clients on various issues which affect them in their lifetimes. The means by which they have created their wealth and the people who hold a special place in their lives is a great starting point. These first two points depending on who you ask will provide an interesting and valuable insight into the thought process of your client. Just imagine all of those people driving around with the bumper sticker I’M SPENDING MY KIDS INHERITANCE, now how would you begin discussing their estate plans. Is this what they really mean?

The interesting point here is in the case of a couple, it may be the one spouse who feels this way. The other may actually be worrying about the couples security and that the money isn’t spent too fast so that they outlive their nest egg. There may be concern about the future for their children and their grandchildren. The brings us to a very important point in our overall discovery, whereby each member of the family may have their own set of concerns and wishes that the other family members are unaware of in addressing the family estate.

It’s a touchy subject for advisors and family members to have but if it doesn’t happen the likelihood of future discourse with family may escalate and then everyone loses, except for the government. The greatest source of family conflict is usually found in the money octagon, where family members are pitted against one another in a battle for the dollar. If just a little discussion took place prior to the battle the minimization of a full scale battle would be significantly minimized. The Advisor is seen as a trusted source and an intermediary not only for their client but the entire family in understanding the issues, concerns, values and priorities for the family members.

One of the easiest ways of banding family together is by asking the members of the family, individually or collectively of the remaining monies within the estate how much would they like to direct to the government, I am sure that the answer would be almost universal – little to none. This on its own is a leading question but one which allows you to shape your discussion with the family. By drawing up a scenario which may reduce taxation over the long term the discussion of needs can be factored in as well as philanthropy.

The realization that families may not be able to spend all of their money during their lifetimes brings us to an interesting point. Some of the assets may transfer efficiently to their heirs while the remaining taxable assets, if not designated and documented will be directed to the government.

The government has made provisions for individuals to minimize their taxation by making outright gifts to charity or bequest considerations. Either way the Advisor can play a crucial role in determining the ideal scenario which suits the current and long term needs.

There are many people who I encounter on a daily basis that express the fact that they don’t want to leave money to the government. They opine that they have given enough money in their lifetime to the government, but are not necessarily certain of how to give or leave money to charity.

What a tremendous opportunity to engage the skills of an Advisor who can provide direction, clarity and family unity regarding this matter.

For further information contact:

William Petruck, President and CEO FUNDING matters Inc.

1-800-856-1354 www.fundingmatters.com

Fraud-lanthropy ™

2011-08-29T09:18:00.000-07:00

Won’t the Bernie Madoffs Go Away?

Financial Advisors must be educated on discussing estate, financial and philanthropic planning with their clients!

caveat emptor or in the case of Park Lane Financial and the ridiculous donation tax scheme caveat donor - If a donation sounds too good to be true it usually is!

The Madoff-eque tax schemes, which don’t seem to go away are being promoted by some financial advisors to their clients and charities, whereby individuals receive a donation receipt in some cases for an amount four times the amount they donated.

Is it greed or stupidity on the advisor or client side?

As published by Jeff Gray in the August 23^rd, 2011 edition of the Globe and Mail, Fern Delarosbil, a project management consultant from Sault Ste. Marie, Ont., says that his financial adviser first recommended an unusual program to lower his tax bill in 2003.

Gray elaborates: “The complex plan, marketed to independent financial advisers by Burlington, Ont.-based Parklane Financial Group Ltd., was to work like this: For every $2,500 Mr. Delarosbil gave to a designated charity, he would get a receipt for $10,000”.

He says he put in $75,000 over a six-year period, receiving approximately four times that amount in donation receipts. This isn’t an isolated event. “While the tax-shelter scheme may sound ‘ridiculous,’ as one lawyer described it in court this week, tens of thousands of Canadians have participated in similar programs over the past decade, on the advice of financial advisers”.

CRA Doesn’t Turn a Blind-Eye

There has been a crackdown by the Canada Revenue Agency on such schemes according to Gray: In 2010, it had reassessed the taxes of more than 130,000 donors, disqualifying more than $4.5-billion in donations.

“Today, Mr. Delarosbil's $75,000 in donations are gone, and the CRA says he owes $180,000 in back taxes and interest, after the agency calculated the tax he avoided paying”.

Lawyers Gave Legal Blessings

“It's the latest in a wave of similar lawsuits against tax-scheme promoters that also target the legal advisers and their big-name law firms - including Fraser Milner Casgrain LLP and Cassels Brock LLP - that allegedly gave schemes their legal blessings. According to court documents, donors in the highest tax bracket were told they could receive an 86-per-cent return in the form of tax breaks. But they were not told that their money, the plaintiff's statement of claim alleges, would enter into a convoluted ‘circle of funds’ that resulted in very little going to actual charities.”

Less than 1 Per Cent to Charity

According to Gray, “The CRA said in a statement in August, 2009, that it had revoked Funds for Canada Foundation's charitable status. The agency said audits had revealed that the organization had issued nearly $176.5-million in receipts, but less than 1 per cent of that went to charity”.

Gray’s article dug deeper: While Mr. Delarosbil believed the paperwork he was signing to get his tax break was merely ‘boilerplate’, the majority of the money, the plaintiff's lawyers allege in their statement of claim, actually went to Bermuda, earning Parklane and the Bermuda Longtail Trust a profit.

Most significantly, Mr. Delarosbil said he and other participants were relying on the word of their “trusted” financial advisers.

Case Study

William Petruck, President of FUNDING matters Inc. and Giftabulator, illustrates how easy it is for a financial advisor to properly structure a $75,000 Big FUNDING gift to charity.

Let’s take do a quick case study and use the example of a $75,000 donation from Jeff Gray's article.

Let’s assume for this example that an individual invested $100,000 in various stocks or mutual funds and his financial advisor did a great job and grew the investment to $300,000.

Now we know that this individual will have a $200,000 capital gain and when realized or sold, CRA will expect $29,916 (assuming they are taxed at the highest bracket).

We know from the article, the individual's donation to the Park Lane scheme was $75,000 spread out over a six-year period or $12,500 per year. What could they receive for this donation, which is in accordance with the CRA?

First, as a donor he would have received a receipt for $75,000 from his favourite charities. Secondly, he would have received a very big thank you from these organizations. The donor probably would have been invited to a gala or for $75,000 made a Big FUNDING Gift, which could name a room at his favourite charity, fund a scholarship or medical research among other things.

And most importantly, according to a calculation on www.Giftabulator.com, he would have received a tax credit of $29,916 – the amount that he would have had to pay CRA for this $200,000 capital gain.

Now what has this actually cost the donor?

The actual cost of giving the $75,000 to his favourite charities according to www.Giftabulator.com - assuming that the $75,000 was $12,500 per year for six years - is $45,120. Now for $45,000 the donor is unbelievably recognized for their generosity and continue to see their investments do well with the advise from their financial professionals.

More importantly, the financial advisor lost the ability to continue to create a lasting legacy for their client by planning out their estates and grow their assets through their financial plans.

For further information on intelligent philanthropic planning or a demonstration of Giftabulator contact William Petruck at FUNDING matters at 1-800-856-1354 or wpetruck@fundingmatters.com.

Jeff Gray's article in The Globe and Mail

A New Twist to an Old Idea

2011-08-23T10:19:00.000-07:00

Buffet and Gates have been recruiting other billionaires to be part of a new twist on a very old idea: a challenge to give up substantial amounts of wealth to charity, and in Warren Buffets case, up to 99%. We do not, however, have to give like the dynamic duo of Buffet and Gates to make a big difference in our world and community programs. Imagine the impact of donating only 1% of your taxable capital gains to charity; furthermore, the impact the 1% donation has on your tax obligation to the government. Now you have a say where your money will go to support your communities and programs.

There is a need for ongoing education to Canadians on how these types of charitable gifts can not only be accomplished, but balanced within the individual’s estate and financial planning synopsis. A way to provide enough money to retire, live in the lifestyle they have grown accustomed to and last but not least, minimize their taxes by increasing their charitable giving.

At FUNDING matters Inc. we refer to these 1% community champions as Power Donors. Just imagine the impact they could have on society.

Assume an individual has $980,000 in total assets and their acquired cost basis for all of their assets is $430,000. Their capital gain is $550,000. Now, all of their capital gain may not be taxable such as their principle residence. Let us assume that only $250,000 of their capital gain is taxable. If the individual were to sell all of their assets, depending on where they live in Canada, their tax owing to CRA would be in the area of $80,000. The estate would receive approximately $900,000 and the government would receive $80,000.

How could the individual minimize the tax obligation over their lifetime? Assume donating the 1% over a five-year period of the taxable capital gain. The Power Donor gift would result in 1% of $250,000 is $2,500, and over a five-year period would result in a $12,500 donation. How about minimizing the tax to zero? It can be done.

We live in an era of emotion-driven “click here to give” charitable campaigns. Alternatively, a rational approach to donations can be just as successful. This involves a proactive and engaging approach on behalf of fundraisers and charities whereby they ask their members and supporters to think about planning their estates, finances and philanthropy, which can result in larger gifts, and added value to their members and donors.

Think about the impact your organization could have on society, how many more people could be helped or programs funded if you have conversations with donors about planned philanthropy.

If you would like more information on solutions and services that enable philanthropic giving go to www.giftabulator.com and request a demonstration.

Opening Doors and Opening Opportunities

2011-08-17T07:21:00.000-07:00

As you may be aware, an independent high school called Toronto Cristo Rey is opening in 2013. In the Cristo Rey model of private education, high school students work one day a week to pay their tuition at the school and study the other four days. The model is touted as a success for low-income families. We are not only excited about this unique and important project, but are pleased to provide you with an update of Toronto Cristo Rey on the road to its opening.

Everyone is very excited about the year ahead, with the Toronto Cristo Rey's Opening Doors to Success Campaign. The campaign seeks to raise $10 million to ensure the start up funds for the school's first two years are in place, thus providing both operational funding and enhancements to the facility.

Toronto Cristo Rey has found an ideal location and currently the purchase of the property and building are in the due diligence phase. This is a major step towards Toronto Cristo Rey's opening in 2013.

This is the first of a series of updates leading up to the school's opening. We will be sharing news about the developments of Toronto Cristo Rey, including new donors and supporters that are helping make a difference in the Toronto education sector and providing opportunities for students from economically challenged backgrounds.

Opening Doors to Success Campaign

Awareness about Toronto Cristo Rey is growing throughout Toronto and Ontario. In our effort to get the news out about this unique and innovative school's arrival, we have been contacting important community members, leaders and various organizations and foundations regarding the Opening Doors to Success Campaign.

We have made approximately 80 individual requests for support for Toronto Cristo Rey and have received interest in return.

At this time, the Congregation of Saint Basil - The Basilian Fathers have given $25,000 to Toronto Cristo Rey. St. Michael's College High School Foundation has purchased the school and will lease it to Toronto Cristo Rey. Currently, St. Michael's College School is underwriting the costs of the feasibility study, in the amount of $250,000.

Toronto Cristo Rey & Community Leaders

A feasibility study is currently being conducted for Toronto Cristo Rey. This study will assess the need and interest in Toronto for a Cristo Rey model high school and ensure the school successfully opens in 2013. One aspect of this study is our search for community leaders. We have now completed 40 Community Leader interviews, giving us a sense of support for the Toronto Cristo Rey project within the Greater Toronto Area.

Among those with considerable interest in this project are Senator Don Meredith and Toronto City Councillor Michael Thompson, philanthropist and investment advisor Andy Pringle, former Principal of St. Clements Patricia Parisi, Lawyer and Investment Advisor Trevor Parry and Dr. Richard Alway, President of the Pontifical Institute for Mediaeval Studies. Gaining this support is a major lift for the school and we will be continuing these efforts in the coming year.
The more support this school has, the more successful its future students will be. We hope we can count on your support throughout this campaign as it takes a community to build a school.

For more information on Toronto Cristo Rey and how you can be involved,

contact Bill Petruck at 416.249.0788 or toll free at 1-800-856-1354

Kimberley Bailey, Feasibility Study Director at 416-653-3180 ext 118 or toll free at 1-877-240-0089

Invest in your success

2011-08-16T07:10:00.000-07:00

Recently I met with my financial advisor. We talked about the economy and the projections for growth based on forecasts from leading research houses and then we took at look at my portfolio. We looked at the mix of assets and the allocation of funding and how best we might make adjustments based on the projections and opportunities in the asset mix.

My advisor had the information nicely packaged on his computer. He walked me through what my portfolio would look like by simply moving assets around and plugging in expected yet conservative growth projections.

The charts, graphs and numbers were easy to follow and in the end, my advisor came across as well versed in explaining somewhat complex scenarios in a very easy to understand format.

I felt comfortable with his recommendations because I could see the growth, impact on my portfolio and the time horizon as it relates to me. When I asked him about the software he was using, he was flattered that my decision was made easier by the software. When his company initially made the move to adding the software to their presentation there was reluctance from the field. Learning a new software package was cutting into their productivity, was the hue and cry from the force. After a training session and support, my advisor said that his productivity has substantially improved. He can accomplish in fewer meetings what took several meetings to achieve.

The same is true when a person is being approached regarding a philanthropic gift to a charity. The funding for the donation comes from the same budget that that financial advisor is discussing with their client. The same consideration needs to be addressed regarding current asset values, projected growth and even taxation. The notion that donations to charity can come from anywhere, as long as the person is committed and willing to making the donation is half of the equation. The reality is that not enough time is dedicated to helping the individual find the ideal source of the donation. In some cases this may mean that the current donation may be smaller based on income requirements, but can be factored into longer-term funding support and potentially bequests or charitable remainder trusts.

These discussions can be initiated by the charity or the financial advisor, accountant or lawyer.

Building Financial Know-How in the Family – A Valuable Skill

2011-08-10T07:11:00.000-07:00

The events of August 8th, 2011, from which we are potentially facing a double-dip recession, should be a warning to all individuals to take action in addressing theirs and their family’s financial needs for the years to come. More than half of the population and 40 percent of high net worth individuals do not have a current estate plan. These individuals are leaving money on the table, which will be collected in either current or estate taxes.

It is times like these that people tend to do as little as possible and end up losing both time and money along the way. By being reactive as opposed to proactive the opportunity to build an important lesson is lost.

According to a recent Merril Lynch Affluent Insight Survey, about half of parents said “financial know-how” was a trait they hoped to impart to their children. Among parents who used a financial adviser, 64 percent said they shared some of their adviser’s guidance with their children, while almost 20 percent of parents aged 51 and older invited their children to meet with the family’s adviser.

Parents also were inclined to lend a helping hand to adult children with about 82 percent saying they would financially support their children in their “early adult years”. About 55 percent of these parents would permit so-called boomerang children to come back and live at home, and 30 percent said they would charge rent.

We know that for the not-for-profit sector, charities and their missions are the beneficiaries of individual generosity. Charities can play an important role in the relationships with their donors, as a source of information regarding the importance for planning their finances, estates and considering when appropriate, philanthropic planning. Regardless of the size of the donation, every dollar makes a difference. These same individuals are the ones who are in need of meeting with their families, understanding the challenges ahead and collectively working towards updating their estate plans and potentially examining how a bequest or outright gift can form the basis of their plans.

Do not lose the opportunity to bring your family together and increase everyone's financial know-how. In these times of uncertainty, one thing of certainty is the need to develop an estate plan.

Giftabulator easily educates, informs and empowers advisors and their clients on estate planning and charitable giving. By giving to charity, individuals may avoid paying a significant portion of the capital gains tax on their capital gains through their donations, thus protecting the estate and creating a legacy for future generations.

Find out more here: www.giftabulator.com