Increased complexity heightens importance of getting expert advice

November 17, 2004, Ottawa Citizen, Advertising Feature, pg. F2
By Paula Roy

Reprinted with permission

Are you among the many generous individuals in the Ottawa area
who collectively donate over $230 million each year in support of local charitable causes?

If so, then you might already realize the importance of obtaining expert advice to plan your philanthropic giving.

With increasing complexity in the areas of financial legislation and taxation, experts agree that whether you plan to give a little or a lot, it is crucial to consult the appropriate advisors to more effectively implement your philanthropic plans. You may require the assistance of several professionals such as: an estates lawyer (or notary in the province
of Quebec); an accountant; a financial planner; and possibly a trust officer.
Make sure that as you seek out these advisors that you select individuals with an expertise in estate planning.

What is the benefit in consulting with experts? Usually people find out they can give more than they thought possible. In addition, they can be matched up with a charitable organization they were previously unfamiliar with but which suits their values and philanthropic goals.

“It’s a win-win for everyone involved,” says Jeffrey McCully, an Ottawa-based business lawyer and consultant with extensive experience in the charitable sector. “Giving becomes less burdensome and more effective.”

Mr. McCully explains that the need for expert advice stems from the fact that the charity industry is now operating more like a business, with everyone looking at return on investment. Many charities, both small and large, are forming alliances with lawyers, chartered accountants, financial advisers, estate planners and philanthropic advisers. These professionals assist the charities in terms of shaping policies, administering gifts and enabling the charities to extend their reach by accessing the professionals’ own networks. Similarly, individual clients approaching these charities benefit from the professionals’ advice and expertise. The professionals themselves gain by tapping into the charities’ networks.

Barbara McInnes, President of the Community Foundation of Ottawa, agrees that expert advice is key. “In addition to planning bequests, we also help people make more effective annual donations,” she says. “We don’t insist that potential donors who come to us give exclusively to the Community Foundation of Ottawa – we just want to encourage philanthropy. The best way to do that is to match up people with a cause that suits their values and goals. Sometimes people only have a small amount to contribute, $500 for example. We know from experience that a gift of that size can have more impact on a small, grassroots organization that has more modest but urgent financial needs, versus a larger charity.”

The Community Foundation is unique, she says, “because we are not the object of people’s giving, we are just a vehicle. Our mandate is about growing the philanthropic instinct in society ... Sometimes people approach us first looking for help to guide them through the process, which can be a bit daunting to the uninitiated. We don’t tell people what to do, but we do give them information about various potential charities, as well as offering lists of professionals they may choose to work with in developing their financial and estate plans. Ultimately, we want to ensure that people’s money does the maximum good it can.”

Ms. McInnes is pleased to give a recent example of an older couple who
visited her office, hoping to make a donation. After heeding the solid advice of a team of professionals, these people were able to see their intended gift of $20,000 blossom into $120,000.

She cites another common, but unfortunate, situation in which people have a lawyer who is not an expert in bequests draw up their will. “In some cases, had the wording in a will been slightly different, the charitable portion of the bequest could have completely offset the taxes,” says Ms. McInnes.

“We feel very badly for people when this happens, because they usually have the best of intentions but get bogged down by the technicalities. A lawyer who specializes in bequests can prevent this.”

Estate planning professionals can help you create a plan to meet your goals and protect your family’s wealth for generations to come. In addition to having the specialized legal, tax, and financial expertise required for even the most complex estate plans, years of experience have helped them understand and develop a sensitivity to the emotional issues that often accompany estate planning.