What Motivates Wealthy Individuals and Families to Give to Charity?
4 common reasons why wealthy individuals and families give back. Some, if not all, may resonate with you and inspire you to add your influence in making a real difference in the lives of people in your community and beyond.
1. Emotional Well-Being
Whether you are making a positive impact on others’ lives or on the world for future generations to come, someone is going to benefit from your contribution. Knowing this can bring a great deal of satisfaction, particularly when you are supporting a cause that you are especially passionate about. Donating your money and time to the things you already love, or knowing that your donation is doing good in the world, can bolster your emotional well-being.
Some wealthy individuals and families may also give back because they feel a personal sense of morality—in other words, a feeling of gratitude for their own good fortune which they feel imposes a “duty” to give back. For others, giving back could also be sparked by a significant personal experience. For instance, the loss of a loved one due to a certain medical condition could lead to a desire to contribute towards research into that condition, or a life experience such as hardship while accumulating wealth could inspire wealthy individuals to support those in need. Reacting in this way to life-changing events leads to healing and peace of mind, knowing that meaningful action has been taken.
2. Social Interaction
3. Financial Benefits
In Canada, there are financial benefits when you donate to a registered charity. You will receive a tax receipt for your donation that can be submitted with your annual tax return. This allows you to receive a tax credit for your donation. To calculate your charitable tax credit, you can visit the Government of Canada’s website on How do I Calculate my Charitable Credits.
4. Leave Behind a Positive Philanthropic Legacy
Last but not least, wealthy individuals and families may wish to leave behind a positive legacy (or “mark” in the world) under their or their family’s name—to know that their lives mattered, to make a contribution for future generations and to perhaps inspire others to follow suit.
If you are inspired by the above, Bloom Investment Counsel, Inc. can help. Established in 1985, Bloom Investment Counsel, Inc. is a Toronto-based independent, privately-owned boutique investment management firm with over 36 years of experience managing in excess of $2.5B in assets over the years. Our clients include wealthy individuals, family offices, foundations, corporations, institutions and trusts.
Since our inception, Bloom Investment Counsel, Inc. has been helping philanthropic-minded families fund their philanthropic ambitions through creating customized investment portfolios that generate both capital appreciation and income. Our total return approach to investing has helped such clients gain access to an independent source of passive cash flow from dividend income which they can use to support causes they care about without withdrawing their initial capital.
This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.