Philanthropy as a Wealth Preservation Strategy

“We make a living by what we get. We make a life by what we give.“- Winston Churchill

For high-net-worth individuals, philanthropy is an intentional act; one that reflects values, vision, and a desire to create lasting impact. True giving shapes a legacy that aligns with your priorities and influences the future. High net worth philanthropy can lower your tax exposure, foster a sense of shared purpose across generations, and ensure that your wealth continues to serve the community well beyond your lifetime.

Thoughtful giving is an essential component of advanced wealth management. When integrated with tax and estate planning, it transforms accumulated capital into a force that creates enduring value. Ask yourself the following questions: What values do you want your wealth to represent? How do you hope your contributions will shape the future for your family and for society?

Incorporating philanthropy into your wealth plan creates harmony between financial success and personal meaning. High net worth philanthropy allows you to channel resources toward causes that matter, whether that’s advancing education, supporting health initiatives, or funding conservation efforts.

This alignment can also deliver significant financial advantages. Donations can reduce taxable income, offset capital gains, and lower the overall value of your estate for probate purposes (Quebec’s system differs). Many families view this stage of their journey as the point where wealth becomes a tool for significance rather than just accumulation. Integrated wealth planning can help ensure your giving supports your financial and personal objectives.

Key Questions to Consider:

• Which causes or issues matter most to you right now?
• Do you want your giving to be local, national, or global in scope?
• How important is visibility or anonymity in your philanthropic efforts?

Effective giving starts with choosing a vehicle that matches your goals, the size of your contribution, and your desired level of involvement.

• Direct Donations: Simple and immediate, direct gifts, whether cash, online transfers, or securities, offer flexibility and create instant impact.
• Donor-Advised Funds (DAFs): DAFs give you the advantage to contribute assets now,  receive a charitable donation tax receipt, and recommend grants over time. They work well for donors who want an intentional approach without taking on the responsibilities of running a foundation.
• Private Foundations: If you seek long-term involvement, a foundation offers control over grant-making, mission setting, and family participation. This approach supports ongoing engagement and can involve multiple generations of your high-net-worth family.

Choosing the right structure ensures that your philanthropic efforts reflect your family’s aspirations and align with your long-term wealth preservation strategy. Learn more about charitable giving strategies that are customizable to match your objectives.

Key Questions to Consider:

• Do you want to actively manage the giving process, or keep it simple and hands-off?
• Is your goal immediate impact, or long-term, sustained support?
• How much administrative responsibility are you willing to take on?

Philanthropy can play a powerful role in optimizing tax and estate outcomes. Charitable contributions can reduce your taxable income and minimize capital gains exposure. In Canada, donating publicly traded securities eliminates the capital gains tax entirely, making this one of the most efficient ways to give.

As you engage in estate planning, keep in mind that charitable bequests decrease the taxable value of your estate, which can support smoother wealth transfer and significantly reduce probate fees (Quebec’s system differs). Some families use life insurance to create a larger charitable gift while maintaining liquidity for their heirs.

Integrating these strategies into your plan allows you to enhance impact while maintaining control over how your wealth grows, is distributed, and preserved as your lasting legacy.

Key Questions to Consider:

• Are there appreciated assets you could donate to maximize tax benefits?
• How do you want charitable gifts to be reflected in your estate plan?
• Could life insurance or another giving strategy help you achieve your goals more efficiently?

Philanthropy is also an opportunity to bring families together. Many of our high-net-worth clients create family giving committees, engage children and grandchildren in selecting causes, and encourage them to participate in evaluating outcomes.

This approach builds financial literacy, nurtures shared values, and helps your heirs develop a healthy relationship with family wealth. High net worth philanthropy, when practiced as a family, turns giving into a unifying experience and prepares your next generation to continue the mission and keep your vision alive. Strategic wealth advisors can help structure these discussions to strengthen long-term family governance.

Key Questions to Consider:

• How do you want your children or grandchildren to participate in decisions about charitable giving?
• What skills or lessons about wealth do you hope to pass along through philanthropy?
• Should philanthropy become a formal part of your family governance plan?

Explore more in: Instilling Financial Values in the Next Generation.

Philanthropy is one of the most meaningful ways to preserve and put your wealth to work for society. When planned thoughtfully, it reduces your tax burden, strengthens family ties, and has an impact that lasts for generations.

Your giving can become the defining chapter of your family’s story. At The St-Georges Group of Assante Capital Management Ltd., our strategic wealth advisors work with you to design a giving plan that reflects your values, supports your goals, and strengthens your family’s legacy. To explore ways to integrate high net worth philanthropy with tax, estate, and investment planning, please contact us. We will help you build a future that your family will be proud to carry on.