A recent survey conducted by Leger on behalf of Mackenzie Investments
found that 89% Canadians would donate a portion of a million-dollar lottery win to charity. This is slightly lower compared to that from a similar poll in 2006, where 95% reported willingness to donate.
The average amount that people would give also decreased: while people were willing to donate an average of $177,000 in 2006, today the average donation threshold was $69,000.
“Much has changed in this country since Mackenzie Investments first surveyed Canadians 10 years ago… the financial crisis hadn’t hit. Canadians were more optimistic about their financial future,” said Carol Bezaire, vice president of 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.”
Another finding was that one in ten Canadians would consider establishing a personal foundation or a donor-advised fund with the lottery winnings, enabling their philanthropy to continue beyond their lifetime. However, only 25% stated that they were aware of donor-advised funds.
For this purpose, Mackenzie Investments is opening the Mackenzie Charitable Giving Program, a donor-advised fund that offers the benefits of a private foundation for an initial minimum donation of $25,000. With the expertise of Mackenzie fund managers, donor assets can be managed so that investors’ donations can grow over time.
Thirty-nine per cent of Canadians feel that they do not give enough to charity, but only 6% have talked about charitable giving with an advisor. Mackenzie therefore sees their product as an unexplored opportunity for many philanthropy-oriented investors.
“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.
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