Million dollar lottery winners would donate $70K to charity compared to $177K in 2006

Ten years later 89% are still willing to donate at least some amount

TORONTO, Oct. 12, 2016 /CNW/ - A decade may have passed, but Canadians are still open to donating a portion of a significant lottery win to charity. In a recent national survey sponsored by Mackenzie Investments and conducted by Leger, 89 per cent of Canadians responded that they would donate some of a million-dollar lottery win to charity. This is a drop from the 95 per cent who responded in a similar poll conducted in 2006.

The average amount that people would donate also dropped: today people would donate an average of $69,000 compared to $177,000 in 2006.

"Much has changed in this country since Mackenzie Investments first surveyed Canadians 10 years ago. In 2006, Nelly Furtado was on the billboard charts and the financial crisis hadn't hit. Canadians were more optimistic about their financial future," said Carol Bezaire, Vice President, Tax and Estate Planning for Mackenzie Investments.  "Today we are still generous but are much more conservative about the amount we would give from a lottery win. Volatile markets, a slow growth economy and high debt levels have likely made people cautious about giving away a large portion of a financial windfall."

The survey also revealed that one in ten Canadians would consider setting up a personal foundation or donor-advised fund with the lottery winnings to ensure their philanthropy lasts beyond their lifetime. But only 25 per cent said they were aware of donor-advised funds.

The Mackenzie Charitable Giving Program is a donor-advised fund that offers Canadians the benefits of a private foundation for an initial minimum donation of $25,000. It is easier and less expensive than a private charitable foundation and was the first charitable giving program of its kind offered by an asset management company in Canada when it launched 10 years ago. It allows Canadians the opportunity to grant money to the charities of their choice each year. The Program uses the expertise of Mackenzie fund managers to manage donor assets with the aim of growing the value of their original donation over time.

"Setting up a personal foundation isn't only for millionaires and lottery winners. For an investment of $25,000 you can establish a donor-advised fund through the Mackenzie Charitable Giving Program," added Bezaire. "The Mackenzie Charitable Giving Program is a powerful way to give, and sets the seeds for a gift to grow and flow to charities for years to come."

The poll also revealed that 39 per cent of Canadians feel they do not donate enough to charities. Advisors can be instrumental in helping Canadians make sound charitable-giving choices but the poll showed that only 6 per cent of investors have talked about charitable giving with an advisor.

"There is an appetite out there to give and advisors can help Canadians navigate the journey to ensure both donors and their selected charities benefit," Bezaire said.

In the survey 10 years ago it was the youngest, those aged 18-24, who were the most generous, vowing to donate an average of $155,000. Today those people, who now are in the 25-34 age category, are the second lowest givers with an average of $56,000, surpassed only by the next group, aged 35-44, who would donate $50,000 from a million-dollar lottery win.

The most generous group in 2016 was those aged 55 plus, with an average donation of $86,000.

Relaunched Mackenzie Charitable Giving Program helps Canadians plan their giving

Since 2006, the Mackenzie Charitable Giving Program has issued $19.4 million in grants to charities and institutions and has supported 1,408 charities. The new enhanced Program launched today offers more products to choose from and introduces a pre-authorized payment program. Minimum subsequent donations have been reduced from $5,000 to $2,000.

The Program offers Donors the opportunity to:

  • Set up an Account that may be in the name of the Donor
  • Make donations of either cash, securities or insurance to the Program
  • Pay no capital gains tax on "in kind" donations of securities
  • Receive a tax receipt for each donation
  • Recommend grants annually to their favourite charities
  • Give more to charities over time through the potential growth of donations
  • Use a range of investment options, professionally managed by Mackenzie Investments
  • Create a charitable legacy

 

Other findings from the 2016 survey:

  • About 1/3 of Canadians (32 per cent) say they are likely to leave a donation in their will. This is significantly higher among 18-34 year olds (44 per cent) and singles (45 per cent). Those in Quebec are least likely (67 per cent said they are unlikely).
  • By province, Albertans pledged the most, with an average donation of $104,000.
  • Divorced and widowed people (compared to single and married) are the most generous with an average donation of $83,000.
  • 8 respondents said they would donate all of the million-dollar winnings.

 

For more information on Mackenzie Investments visit www.mackenzieinvestments.com

NOTE: Regional results available upon request.

The survey results are based on a Leger national online survey of 1,542 Canadians (18 years and older) between August 22 and 24th, 2016 using Leger's online panel, LegerWeb. A probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.

The 2006 survey results are based on a Decima TeleVox national telephone survey with a representative sample of 1,040 Canadians (18 years and older) between June 7 and 14, 2006. A sample of this size will provide results that can be considered accurate for the population overall to within +/- 3.1 %.

About Mackenzie Investments

Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With $64.3 billion in assets under management as at September 30, 2016, Mackenzie Investments distributes its investment services through multiple distribution channels to both retail and institutional investors. Mackenzie Investments is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $139 billion in total assets under management as at September 30, 2016. For more information, visit mackenzieinvestments.com.

SOURCE Mackenzie Financial Corporation

For further information: Trish Tervit, Director, Communications and Media Relations, Mackenzie Investments, 416-967-2166, ttervit@mackenzieinvestments.com

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