Empowering Impact: The Transformative Role of the Nicola Wealth Private Giving Foundation

With 30 years behind it and a “share the pie” philosophy woven into every action it takes, Nicola Wealth has had a profound impact on charitable community causes and on the strategic financial plans of investors.

Nicola Wealth’s founder John Nicola wanted to make giving a pillar of the company’s operational structure. Taking on a “share the pie” philosophy, the firm directs a percentage of profits through to giving and in 2023, gave $2.5 million back to community through corporate and staff giving.

“We have done an amazing job of weaving philanthropy into what we do,” says Jacqueline Dagg, team lead for the Nicola Wealth Private Giving Foundation. “Over the next five to ten years, it will be exciting to see the collective impact, as we continue to grow as a business and what that means for the scale of our philanthropic approach, both on the corporate giving side and for our clients through the Nicola Wealth Private Giving Foundation.”

The Nicola Wealth Private Giving Foundation (PGF) is just one way Nicola Wealth has unleashed the power of purposeful giving. It provides a seamless and effective platform through which donors can channel their philanthropic aspirations. By establishing a donor-advised fund, individuals gain unparalleled flexibility and control over their charitable contributions, ensuring that their giving aligns with personal values and societal needs. A donor-advised fund is a simple, strategic tool that can help donors meet personal charitable goals without having to go through the burden (and cost) of establishing a private foundation. Donor advised funds also provide an additional level of privacy over traditional foundations as public reporting is aggregated for all sub-accounts whereas the required disclosures for operating a private foundation mean a lot of personal information can be traced back to the individual.

“Donor-advised funds offer a unique avenue for investors to optimize their financial plans, providing tax advantages and a strategic philanthropic impact that extends far beyond conventional giving,” says Timothy Stranks, wealth advisor and client relationship manager.

This is the crux of purposeful and strategic financial planning—finding synergy between your philanthropic journey and your financial goals. Leveraging the company’s giving culture, Nicola Wealth PGF donor-advised funds help clients get creative with their capacity for giving and navigating the complex landscape of tax planning—all while supporting the causes they hold dear.

Donor-advised funds also offer flexibility. They can be the perfect solution for those families and individuals in high tax brackets hoping to maintain philanthropic commitments during the ebbs and flows of high and low-earning years and market fluctuations.

“When times are tough it can be hard to think about giving,” Stranks says. “A donor-advised fund and prioritizing giving within overall financial planning allow investors and philanthropists to support charities on an on-going basis, whether it is a financially successful year or not. When times are good, they can add more to the fund, which can support charities during years when donations to the fund are not possible.”

This is an important advantage of developing a long-term relationship with an advisor who takes a strategic approach to philanthropic giving. Doing so means that as one’s financial goals change over multiple life stages, the advisor can help with planning through transitions. For example, a philanthropic plan will look different in the accumulation phase of one’s life versus the time in which a person is preserving wealth or planning for transfers to the next generation.

“Having an advisor help you think creatively about giving when setting your goals means when you start building your wealth, the results are working in synergy over time as you reach all the important milestones in your life,” Stranks says.

“There are over 86,000 registered charities in Canada,” Dagg says. “It can be hard to be succinct. Because we have strong relationships with our clients and a deep understanding of their financial pictures, we can have meaningful conversations to help determine where they want to make a philanthropic impact. These relationships allow us to provide a wraparound service, helping clients identify where they can make an impact, whether that is local, international, grassroots or large organizations.”

Stranks adds that Nicola Wealth advisors disburse charitable grants on behalf of many clients, which means the firm fosters relationships with a spectrum of charities.

“We do this by leveraging the knowledge gained from other donors who have supported even the most niche of causes,” Stranks adds. “Our objective is to be able to help clients navigate how their giving and achieve the impact that is meaningful to them.”

Stranks and Dagg agree that individuals with a giving plan often get more in return through that positive feeling of giving back than they do from compounding investment returns. “There is evidence that giving has positive psychological benefits,” Dagg says. “It makes you happy and it evokes gratitude, social connection, and it is contagious.”

“Some people are inclined towards philanthropy and others aren’t sure where to begin,” Stranks says. “Whether you’re a seasoned philanthropist or just beginning your journey in giving, the advisors at Nicola Wealth and the tools provided by the Nicola Wealth Private Giving Foundation offer personalized solutions to match your unique circumstances and achieve your vision.”

Discover the Nicola Wealth Private Giving Foundation at nicolawealth.com/private-giving-foundation.

Connect | Instagram | X | LinkedIn

This material is distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Please speak to your Nicola Wealth Advisor regarding your unique situation. Nicola Wealth Management Ltd. (Nicola Wealth) is registered as a Portfolio Manager, Exempt Market Dealer, and Investment Fund Manager with the required securities commissions.