Page 13 - ECF-Thrive-Nov-Dec_2024

Generosity Education
Marshall McAlister, CFA
ASK THE EXPERT
Instilling family values through charitable giving
By MARSHALL MCALISTER
CHARITABLE GIVING GOES beyond a financial transaction; it reflects a family’s identity, values and the legacy they wish to create for future generations. What we see is: Many families give money away, and some give a lot. For those who have integrated philanthropy into their lives, discussing charitable giving has never been an awkward topic — it’s a natural extension of conversations about family goals and the purpose of family assets.
EDMONTON COMMUNITY FOUNDATION (ECF): Why is it important for you, as an advisor, to discuss charitable giving with your clients?
MARSHALL MCALISTER (MM): Discussing charitable giving allows me to better understand my clients’ core values and priorities. This insight enables me to make tailored recommendations regarding the amount and frequency of donations that align with their overall financial strategy.
ECF: When starting the conversation about philanthropy, what do you ask clients to consider?
MM: I begin by asking how they currently support the charitable sector. By identifying issues and causes that matter to them, that they regularly contribute to, we can often develop a long-term funding strategy that maximizes beneficial outcomes. At North Road, we love the idea of supporting important charities in perpetuity — beyond the lifetimes of our clients. This is where we can recommend clients work with ECF, providing a cost-effective platform for holding endowed funds.
ECF: How do you encourage clients to involve their families in conversations about philanthropy?
MM: It’s not uncommon for parents to hesitate when it comes to fully disclosing their financial situation to their children. However, as our clients age, I often recommend, when appropriate, that they begin involving their children in understanding the broader financial picture.
Involving children (and even grandchildren) in the family’s charitable decisions can open up opportunities to share knowledge across generations. These discussions create a space for educating the next generation
about the importance of giving, fostering a legacy of philanthropy early on.
Starting the habit of giving earlier in life offers unique benefits. Not only do donors experience the joy of seeing the impact of their contributions firsthand, but they also build stronger connections with the causes they care about. For our clients, early engagement in giving creates an opportunity to involve loved ones in meaningful decisions, offering a personal legacy far more rewarding than waiting to give through an estate plan. Philanthropy during their lifetimes allows donors to actively witness the change they create while cultivating a lasting family culture of generosity.
ECF: What are the financial benefits of family philanthropy?
MM: While charitable giving offers tax benefits that
can reduce the overall cost of a gift, there’s no denying that it still comes at a cost. Whether giving cash, land or appreciated securities, philanthropy reduces wealth on the balance sheet, even after accounting for tax savings.
However, for those who have achieved financial security, the value of moving funds to those in need or supporting worthy causes far outweighs the cost. In my decades of experience, I’ve seen families make significant gifts, both directly and through charitable foundations, and I’ve yet to encounter a family that regretted their decision. The act of giving not only enriches communities but also solidifies a family’s values and legacy for generations to come.
Marshall McAlister is President, Portfolio Manager at North Road Investment Counsel. Earning a Bachelor of Commerce in Finance from the University of Alberta and holding the Chartered Financial Analyst (CFA®) designation, he has spent more than 20 years providing wealth management services to high-net-worth clients.
ecf.ca 103