Imagine you won $1M in the lottery. What would you do with your winnings? Pay down the mortgage? Take a five-star vacation? Set money aside for your parents, your kids, and your retirement? I bet you’d set money aside for charity too - maybe to fund a scholarship or advance lifesaving research?
Most of us don’t have an extra $1M sitting around. So, we assume this type of philanthropy is reserved only for the wealthy. Yet some of the biggest donations in Canada come from everyday people. Not because they won the lottery, but because they included a gift in their will.
The impact you didn’t know you could make
The average Canadian estate is worth around $1 million—and often much more in larger cities. That means that, one day, most of us will make a decision about how that money is distributed.
Naturally, we think about family and loved ones first. But what if you set aside just a small percentage for a cause that's helped shape your life? Even 1% can add up to far more than most people expect, while still leaving 99% to the people you love.
I lead Will Power, a national public awareness campaign that's helping Canadians think differently about charitable giving. One of our most popular tools is the Legacy Calculator, which lets you see what even 1% of your estate could become for charity. There's something incredibly satisfying about seeing what's possible, when you realize that you can make the kind of contribution that changes someone’s life and it’s totally within reach.
The rise of gifts in wills
Until recently, gifts in wills were thought of being something only very wealthy people could do. But that’s changing. In the last five years, the number of Canadians who've included a charitable gift in their will has doubled. Today, nearly one in two Canadians says they're considering this for their will.
It’s not just retirees either. In fact, millennials are now more likely than boomers to have left a gift in their will. York U alumnus Tyler Ward is one of them.
Why the change?
In the face of growing social and environmental challenges, people are feeling an urgency to make a difference. At the same time, rising living costs have made it harder to give back as much as they’d like.
People are getting savvy about how they give. They're using tools like their will, RRSPs and life insurance policy to extend their giving, often reducing taxes at the same time.
For future you
One day, you’ll be speaking to your lawyer about your will and they’ll ask a simple question: "Who would you like to include in your will?"
I hope this article comes back to mind…and the 1%. Few decisions have the power to make such a lasting difference.
Laurie Fox (MBA ’12 Schulich) is the Director of Will Power, a public awareness campaign inspiring Canadians to think differently about their charitable giving. Laurie has worked in the non-profit sector for over two decades and seen the need in our communities rise. But she has also seen first-hand how ordinary Canadians have made a truly extraordinary impact just by leaving 1% of their estate to a cause they care about.
Laurie is on a mission to show all Canadians the power they have to change the world simply by giving in a different way. You can learn more about Will Power, and use the free tools and resources on offer at willpower.ca.