- Survey shows Canadian boomers want to be smart with their giving,
however, nearly half donate on impulse, without a plan or budget
- More than four out of five boomers cite charitable giving as a
rewarding and educational family experience, but only 15 per cent
involve their children in the decision making process
- Only 1 per cent involve a financial advisor in planning for charitable
TORONTO, Nov. 12 /CNW/ - While most Canadian boomers - 82 per cent - plan to increase or maintain their level of charitable giving in the next five years, with the majority saying they would do so regardless of the economic climate, half are only 'somewhat satisfied' with their current way of giving, according to a new report released today by the BMO Retirement Institute entitled The Evolution of Giving: From charity to philanthropy.
Boomers today want to be involved and want to have a level of control over how their contributions are utilized. Unlike their parents, who have tended to bequeath their donations, boomers are giving during their lifetimes, so that they can see what impact their donations are making. But only 1 per cent of respondents said they involve a financial advisor in charitable giving planning.
"To make the impact boomers crave, giving requires as much planning as does saving," said Tina Di Vito, Director, Retirement Strategies, BMO Financial Group. "A financial advisor can assist in making informed charitable decisions and to ensure that those dreams are realized - during their lifetime and in perpetuity."
"Boomers are telling us they want more transparency in their philanthropic giving," said Marvi Ricker, VP and Managing Director, Philanthropic Services, BMO Harris Private Banking. "They told us they would be more satisfied if they knew the impact of their contributions, and that the money was spent wisely and effectively. They have become more involved on a personal level and want to see results."
This is a definite shift in attitude, according to Di Vito. "Boomers - who represent nearly one in three Canadians - could be the generation who lead the way to social change: spearheading the transition from a nation of charitable givers - that is, from just writing cheques to worthy causes - to a nation of engaged and long-term philanthropists."
The report revealed a number of other key findings:
- The number one reason for donating for 68 per cent of respondents is
"To make a difference in a cause I believe in"
- Majority of respondents, 94 per cent, indicated it is important for
them to give to charities that serve local causes
- Almost one in three who donated money to charity within the last 12
months also raised money or volunteered for a charity.
BMO's podcast features Tina Di Vito and Marvi Ricker discussing findings from the Institute report, along with examples of how some Canadian families approach charitable giving:
About The BMO Retirement Institute
The BMO Retirement Institute, launched in April 2008, provides thought provoking insight and financial strategies for those either planning for or in their retirement years. The Institute was launched to help pre-retirees simplify the complex dynamic between personal finances, personal relationships and retirement lifestyles. Contact the Institute by email at firstname.lastname@example.org or visit www.bmo.com/RetirementInstitute for a copy of the report.
About the BMO Retirement Institute Study
The survey was conducted in late August 2009, among respondents who are over 45 years old, have household assets worth more than $50,000, and have donated money to charity in the last 12 months.
SOURCE BMO BANK OF MONTREAL
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