People who do not have access to the kind of expert advice and tax guidance available to many wealthy families might feel daunted by the idea of philanthropic giving. But there are options available. Among them are donor-advised funds offered by pioneering financial institutions like Nicola Wealth and TD Wealth. At root, these platforms follow a model that empowers donors to realize the tax and other advantages of a charitable foundation while directing dollars to their desired causes; governance and administration is looked after for them.
Dr. Anne Neufeld is an entrepreneur and mental health advocate, and she is very keen on wealth stewardship. She worked as a health executive for most of her career, but it was her leadership roles at Saskatchewan Polytechnic that opened her eyes to the need for more mental health support among students, both young and mature.
As she gained the financial means to give more generously, however, Dr. Neufeld—like many other philanthropists—did not have the benefit of a family or corporate foundation or trust to give in an effective and tax-efficient way. For her, the solution was a donor-advised fund with the Private Giving Foundation at TD Wealth.
Here, she shares how she became more focused on giving during her years as provost and vice-president, academic, at Saskatchewan Polytechnic, and why she chose a donor-advised fund—which she calls “Annie’s Friends”—as the best avenue to fulfill her charitable goals.
You’ve had a unique journey toward charitable giving. How did your career as a health executive affect your philanthropic goals?
Having worked as a health executive, I’ve been a mental health advocate for many years. Historically overlooked and underfunded, the mental health sector has been called the ‘poor cousin’ of health care. Since the pandemic, sadly, more Canadians report deteriorating mental health and wellness. While governments struggle to respond, I think it’s important for individuals to step up and help fill the gaps.
During your university and career journey, who were your mentors?
In my early management career, I was fortunate to have a boss and a direct report who were exemplary models of charitable giving, community service and volunteerism. It felt like a ‘goodwill’ sandwich, with me in the middle. This inspired me to support students and young professionals by passing along these life lessons that fall outside the traditional mentorship role.
What brought you to a place of wanting to look more deeply into wealth stewardship and charitable giving?
It’s been an evolution since my university days when I was an active volunteer and small donor. In my late 20s, I even spent three years volunteering full-time on an earthquake reconstruction project in Chile. In those early years, wealth acquisition and stewardship certainly weren’t on my radar. Volunteering overseas broadened my horizons and generated awareness that the world isn’t a level playing field and many people face significantly more difficult life circumstances than others. It’s one of the reasons I aspire to the slogan: Think globally, act locally.
Of late, I’m observing the impact of negative news coverage on stress, anxiety and general well-being. Reports of terrorist attacks, natural disasters, wars and political fights are now accessible 24/7 in the palm of our hand. Rather than just be an anxious news consumer, I’d rather be part of the solution in some tangible way. Over the years, I’ve learned that helping others puts your own life into perspective and helps generate a more optimistic outlook. Small acts of generosity from many people can have a positive multiplier effect on what appear to be unsurmountable challenges.
How did the idea of a donor-advised fund come your way, and what made sense about it for you?
I heard about TD’s Private Giving Foundation from my wealth manager in 2018 after selling a business I had co-founded 20 years prior. From a tax perspective, it was the ideal time to make a lump-sum contribution. My only regret is that I didn’t give more! I’ve made one top-up contribution since and will continue to do so when it makes sense.
I opted for a TD donor-advised fund with the Private Giving Foundation because it offers a flexible, low-maintenance way to create a private foundation. It helps eliminate the administrative burden and allows you to focus on the fun part: giving. Their quarterly reports make it easy to keep track of contributions and disbursements at a glance. I specifically picked TD because of its pioneering work in this area. For gifts to Canadian registered charities, it’s seamless and effortless.
The youth mental health crisis is deepening, and this creates more urgency to support vulnerable teens and young adults before their futures are seriously hampered.
Why has mental health become important for you?
Most families have members struggling with mental health challenges, and mine is no exception. The more we talk openly, the more we learn about these struggles and how they impact our loved ones, friends, coworkers, and neighbours. Speaking up is an important first step in acknowledging these serious health issues and to help reduce stigma. But, that said, I’m a firm believer that you have to put your money where your mouth is.
Why is a focus on mental health at colleges and universities important?
Socioeconomic status certainly plays an important role in determining mental health status, but it’s by no means the only factor. Structural barriers such as racism, discrimination, and income or health inequality create greater risk, but no one or no family is immune. The youth mental health crisis appears to be deepening, and this creates more urgency to support vulnerable teens and young adults before their futures are seriously hampered. The more we collectively support earlier assessment and intervention, the better. During my time at Saskatchewan Polytechnic, our team was keenly aware that mental health and wellness impact student success. This has prompted me to support various initiatives spanning student counselling services, suicide prevention, and scholarships that promote access and equity. My hope is that these supports help propel students across the finish line at graduation and into the workforce.
Can you offer any advice for those who might want to look further into a donor-advised fund?
Reach out to your wealth manager or other trusted advisor and gather some information. It’s important to reflect on your values and where you want to make a difference, regardless of the size of your investment portfolio or net worth. Creating a Private Giving Foundation account is a great way to prompt some deep thinking about how and where you want to make a difference.
You can avoid the administrative hassles while reaping the rewards of seeing your gifts in action. An important but less talked about side benefit is that it also makes it easier to decline donation requests, as hard as that is. With a consolidated plan, you can more readily assess how potential gifts align with your values and priorities. I’ve found it makes my giving more co-ordinated and thoughtful, and it helps prevent snap decisions.
I called my donor-advised fund Annie’s Friends for a reason. It’s simple: If you or your causes are my friend, you get some funding. So, at the end of the day, have some fun with it and leave the admin work to the pros.
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