What Is Planned Giving and Why Should Canadian Charities Care?

When we think about giving to charity, we often picture dropping coins in a donation box or sending money online. But there’s another powerful way people can give back—planned giving. In simple terms, planned giving is when someone includes a gift to a charity in their will or financial plans. It’s a quiet kind of generosity that can make a big impact in the future.

What Is Planned Giving in Canada?

Planned giving in Canada means setting up a donation now that will take effect later, often after someone passes away. This could be money, property, stocks, or even life insurance. Unlike everyday donations, planned gifts are often larger and more thoughtful because they’re connected to a person’s long-term values.

For charities and nonprofits, planned giving can help create a stable future. It means having support that lasts, even when donations go up and down year by year.

Why Is Planned Giving Important for Canadian Charities?

Many charities rely on planned gifts to continue their work. These gifts can help fund new programs, support long-term goals, and even build buildings or scholarships. For example, the United Church of Canada’s planned giving program helps donors support their local church or national programs for years to come.

According to planned giving statistics in Canada, only a small percentage of Canadians include charities in their wills, less than 10%. But imagine if that number grew. Even a small increase in planned gifts could mean millions more going to important causes every year.

Common Planned Giving Strategies in Canada

There isn’t just one way to make a planned gift. Here are some common planned giving strategies in Canada:

• Bequests in a Will: This is the most popular type of planned gift. Someone includes a donation to a charity in their will—either a set amount, a percentage, or what’s left after other gifts are made.
• Life Insurance: A donor names a charity as the beneficiary of their life insurance policy. This can be a great way to make a big impact without using cash now.
• Gifts of Securities: Donating stocks, bonds, or mutual funds not only supports the charity but can also give tax benefits to the donor.
• RRSPs or RRIFs: Registered Retirement Savings Plans or Income Funds can be directed to a charity, reducing taxes owed by the estate.

Each of these strategies comes with its own rules, so it’s always a good idea for donors to talk to a financial advisor or lawyer before making a decision.

How Can Charities Talk About Planned Giving?

Sometimes, charities are nervous to bring up planned giving. It might feel too personal or uncomfortable. But most people actually appreciate the chance to leave a legacy. The key is to talk about it in a warm, respectful way.

Here are some tips:

• Use real stories: Share examples of donors who made a planned gift and what their gift helped accomplish.
• Keep it simple: Avoid legal or financial jargon. Use clear and friendly language.
• Make it about values: Focus on the donor’s desire to make a lasting difference.
• Offer support: Provide resources or even connect donors with financial professionals who can help.

Planned Giving Builds the Future

Planned giving isn’t exclusive to the wealthy; it’s available to anyone wishing to make a difference. Whether you're a teacher, nurse, or retiree, you can support the causes you value through a straightforward gift in your will.

For Canadian charities and nonprofits, growing a planned giving program can mean more than just extra funding. It’s about building relationships, sharing dreams, and creating something that lasts. Whether it’s a food bank, an arts program, a school, university, or a local church, mosque or temple, planned gifts help good work carry on for generations.

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