By Trixie Rowein
It’s that time of year again. The weather is getting cooler, Canadians are checking off year-end financial to-do lists, and many of us start thinking about the charities and causes we’d like to support. While charitable giving often begins with a desire to help others, it can also be an opportunity to make smart financial decisions that maximize both your impact and your tax savings.
Canada’s charitable donation tax credit is one of the most generous tax incentives available to individuals. Donations made to registered charities generate valuable tax credits that can help offset taxes payable. By incorporating charitable giving into an overall financial plan rather than viewing it as a one-time event, donors can often achieve a greater benefit for themselves and the organizations they support.
One particularly effective strategy is donating appreciated securities rather than cash.
The donor generally receives a tax receipt for the fair market value of the securities.
Capital gains tax that would normally be triggered by selling the investment first is avoided.
The result is often more money going to charity and less being lost to taxes.
For many philanthropically minded families, Donor Advised Funds (DAFs) are becoming an increasingly attractive solution. A Donor Advised Fund functions much like a charitable investment account. Donors make an irrevocable contribution and receive an immediate tax receipt. The assets can then remain invested and potentially grow tax-free within the fund while donors recommend grants to their favourite charities over time.
This flexibility can be especially valuable during years when income is unusually high, such as following the sale of a business, receipt of a significant bonus, or an inheritance. A DAF allows donors to secure the tax benefit today while taking time to thoughtfully determine how and when charitable grants should be distributed.
For clients seeking a streamlined approach to charitable planning, I use the Raymond James Canada Foundation Charitable Giving Fund program. Through the Foundation, donors can establish a charitable account, contribute cash or eligible securities, receive immediate tax benefits, and recommend grants to registered charities across Canada. The Foundation handles the administration, making it easier for donors to focus on the causes they care about most.
In my own experience, one organization that demonstrates the power of philanthropy is Little Warriors, an Alberta-based national charity committed to the awareness, prevention, and treatment of child sexual abuse. As a member of the Board of Directors, I have the privilege of seeing firsthand how donor generosity translates into real impact. Every contribution helps support programs that educate communities, strengthen prevention efforts, and provide vital resources for survivors and their families. It is a reminder that behind every charitable gift is a story of hope and healing.
Charitable giving can also play an important role in estate planning. Whether through a will, beneficiary designations on registered accounts, or a gift of life insurance, a carefully designed plan can help reduce taxes payable by the estate while supporting causes that matter most to future generations.
Whether you’re supporting a local food bank, a healthcare foundation, the arts, or an organization such as Little Warriors, charitable giving allows you to put your values into action. And when done strategically, it can also provide significant tax advantages that help you give even more.
As a financial advisor, I know that the most rewarding wealth planning conversations are not about investment returns alone. They are about helping families use their resources to create positive change and support the causes they care about. Contact me to learn more at 780-414-2520.
Trixie Rowein
Trixie Rowein is known for her work ethic and commitment to the community and clients. She started her career at Raymond James in 2000 as a financial advisor and has been empowering and guiding clients to make smart decisions for 25 years. She and her team specialize in advising clients going through a transition, including retirement, loss of a spouse through death or divorce and transitioning wealth to the next generation. Growing up in Edmonton in an immigrant family, she saw firsthand how smart financial planning could transform lives.
As a lifelong learner, she has earned several designations, including the Certified Professional Consultant on Aging (CPCA) designation, as serving our aging population matters to her. She values education - writing a weekly e-newsletter, in addition to hosting regular seminars and speaking to high school and UofA students. Trixie is on the Board of Directors of Little Warriors charitable organization, and part of the Raymond James Canada Foundation (RJCF) Advisory Committee. She and her husband Ian enjoy travelling, gardening and spending time out at their acreage. Trixie has two daughters and is fluent in Spanish. You can contact Trixie at 780-414-2552.
Information in this article is from sources believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. Raymond James advisors are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The views are those of the author, Trixie Rowein, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member of the Canadian Investor Protection Fund. Raymond James Ltd. is a Member of the Canadian Investor Protection Fund.