BMO Private Wealth held a panel discussion on Tuesday, November 15, National Philanthropy Day, with clients using private family foundations, donor-advised funds, insurance, estate planning and other charitable strategies to support causes that matter to them.
The event began with opening remarks by Caroline Dabu, Head of Wealth Distribution & Advisory Services at BMO Private Wealth. Dabu shared it was an ideal time to discuss how BMO clients are boldly growing the good via philanthropy.
Philanthropy has changed significantly over the past few years, she explained, whether due to COVID, a push for equity, or other factors. Those changes have transformed the nonprofit sector, leading to new causes that require support – and new strategic thinking on how to offer it. “We want to help clients donate to causes that are meaningful to them, that allow them to feel the value of their contributions and offer an opportunity to pass on the value of giving to future generations,” she said.
Before starting the discussion, moderator Lydia Potocnik, Head of Estate Planning & Philanthropic Advisory Services at BMO Private Wealth, congratulated her team for their 20+ years helping clients make long-term, measurable impact with their giving. “I’m delighted to be here to highlight stories of change with philanthropic efforts.”
Family Foundation Gives Back
The first story came from Gina McDonnell and Erin Piller of the Charles H. Ivey Foundation, a multi-generational family-run charity with a 65-year history. McDonnell shared how the foundation’s support for communities is sometimes inspired by personal experience. A young family member was afflicted with cystic fibrosis years ago and her family found little support. That challenge led the Foundation to co-found the Canadian Cystic Fibrosis Foundation (now CFC) which has gone on to help thousands of Canadians.
Piller then discussed how the younger generations influenced the foundation to evolve. Commending BMO Philanthropic Advisory Services for helping them refresh their mission and governance practices, Piller said it was important to maintain a balance between foundational partnerships and providing a space for new interests. “It could open you up to opportunities and expose you to organizations doing great work,” she said.
That evolution offered an opportunity to reevaluate the causes they support. While their traditional focus on health and the arts continues, they’ve also turned their attention to the environment, social services and youth, enhancing engagement and meaningful dialogue among all members.
Donor-Advised Fund Supports Marginalized Students
The discussion then turned to a less formal vehicle that allows individuals to leave a legacy and engage their family. Halifax-based Samir and Marie Chater shared their experience creating a donor-advised fund (DAF) through the BMO Charitable Gift Program.
After coming to Canada from Lebanon in 1974, Samir ran a successful real estate development company with his wife. Always charitable-minded, a few years ago they decided to set up a DAF to give back in a unique way. It was important to include their children in every step, explained Marie. In fact, it was their children who noticed the need to help university students.
Hoping to meet that need, the Chaters established a scholarship fund and bursary at Dalhousie University to support Indigenous students in nursing and engineering. With every family member an alumnus of Dalhousie University, the Chaters believe in the power of education, explained Samir. Helping those with less opportunity reach their educational goals is important. Samir also hopes he can teach others that “everyone can be a philanthropist.”
The Power of Insurance
Next on the panel was Timothy Simpson, Senior Estate and Insurance advisor who recounted helping a BMO Private Wealth client devise a philanthropic strategy that leveraged insurance to create a legacy. The client inherited an unexpected inheritance of $600,000 from her sister. With no dependents, she planned on donating the funds to her church.
Her BMO advisor suggested an alternative that would benefit even more people over time and leave a legacy too. “We were able to take the money and invest it in an income portfolio and also buy an insurance policy that would pay out $600,000 upon her passing,” shared Simpson. The duality of the donation would allow her to give back while she’s alive and leave a legacy after she passed. The client contributes to the insurance policy through a DAF while maintaining a donation strategy with the money she saved on her own.
The story demonstrates that philanthropy is not only for the ultra-high net worth, affirmed Potocnik. It’s for people who want to leave a legacy. Simpson then shared his personal experience with charitable giving, explaining how his family foundation donated a sizable insurance policy and maintains regular donations through their DAF. “Our mandate is providing good kids with better opportunities, to make the community better. It’s a way of giving back to the community that supported us.”
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