Philanthropy, the act of giving resources to improve the well-being of others, plays a pivotal role in society. It represents a commitment to social responsibility and community betterment, often associated with individuals of substantial wealth. These ultra-wealthy individuals have significant influence due to their financial resources, enabling them to make substantial impacts on societal issues ranging from healthcare and education to environmental conservation and beyond.

Fundraising is crucial for nonprofit entities and charities to support their causes and sustain their operations. Unlike for-profit enterprises, these organizations rely heavily on the generosity of donors and supporters to finance their activities, from providing essential services to advocating for social change.

Without consistent and effective fundraising efforts, many nonprofits would struggle to cover their operational costs, let alone expand their reach or enhance their services. Thus, successful fundraising is not merely beneficial, it is crucial for the survival and growth of these organizations.

Gifting money tax-free in Canada may be of interest to you when looking to support your loved ones or planning the distribution of your estate effectively. Unlike some other countries where large financial gifts may be subject to taxation, Canada presents a more favorable scenario if you are looking to transfer your wealth.

When starting your philanthropic journey, it is just as important to plan how you are going to give as it is to decide the cause you want to support. Understanding the difference between a Donor Advised Fund and a Private Family Foundation, and deciding which is right for you, is a great starting point for this journey.

There are many ways you might have ended up with wealth in excess of your needs. Maybe you have experienced a liquidity event such as an inheritance or sale of a family business, or you have retired with more savings than you need to support your desired retirement lifestyle.

However you have come to this excess wealth, you may want to set up a philanthropic program to donate some of your excess savings to charity. One of the ways to do that is to establish a private family foundation.