For Vancouver couple Abdul and Almas Allibhai, the values of generosity, sharing, and volunteerism as a Shia Imami Ismaili Muslim family fuel their passion for philanthropy.
Twenty years ago, the Allibhai were among the first TD Wealth Private Wealth Management clients to establish a charitable foundation through Private Giving Foundation (PGF), a registered charitable foundation that aims to make philanthropy simple and accessible by enabling people to immediately set up a fund with as little as $10,000 and the help of a financial advisor.
Over the last two decades, Abdul and Almas have used the Allibhai Family Foundation they established through PGF to donate money to causes that are close to their hearts, including the Aga Khan Foundation’s World Partnership Walk, the Juvenile Diabetes Research Foundation, and the Royal Columbian Hospital Foundation.
Abdul said the family was inspired to support the Juvenile Diabetes Research Foundation, now called Breakthrough T1D, when their son was diagnosed with Type 1 diabetes.
"We are hoping that with the help of the research that this fund is involved in, there will be a cure that would positively impact the lives of all the infants, kids and adults that are suffering from type 1 diabetes," Abdul said.
“The Royal Columbian Hospital serves a large population of the Lower Mainland, and has been involved in modernizing the building as well as equipment and departments. Our son also happens to practice in that hospital as a specialist.”
Private Giving Foundation
PGF is the first donor-advised fund launched by a financial institution in Canada, and was founded in 2004 by Jo-Anne Ryan, Vice President, Philanthropic Advisory Services at TD Wealth.
PGF’s goal is to make it easy to establish a charitable legacy of giving and support the causes that matter to donors, who can donate cash or publicly traded securities. PGF may also be named beneficiary of a retirement savings plan or retirement income fund, tax-free savings account, and a life insurance policy. In addition, PGF may be named as a beneficiary of your will.
Funds are invested and grow tax-free, which helps maximize what can be distributed to charities. Donors can grant money from their fund to registered charities of their choice.
“The Private Giving Foundation has invested wisely and cautiously for their donors, and this has resulted in the upward growth of the value of our foundation,” Almas says.
“The Private Giving Foundation is well managed, and the team understands our needs and desires when we communicate with them about our wishes as to where we would like to donate our funds on a needs basis.”
PGF marked its 20th anniversary in October 2024, and has received more than $1.3-billion in donor contributions since its inception. With more than 1,900 donor-advised funds and growing, Private Giving Foundation has distributed over $700-million to charities that serve a wide variety of causes, including climate change, mental health, the digital divide, poverty and food insecurity.
“Sometimes, a small donation can totally change someone’s life,” says Ryan, who serves as the Executive Director of Private Giving Foundation.
“You don’t have to give a certain amount to be considered a philanthropist. It’s giving time, treasure and talent for the public good. It’s giving in a way that reflects your values, as opposed to just writing a cheque.”
PGF is an independent charity and has a services agreement with TD Bank Group to handle all the administration associated with running the foundation. This allows PGF to provide the same benefits of establishing a foundation without worrying about the governance and administrative complexities of running one.
“Donors don’t have to worry about anything except deciding what charities they want to give to,” says Ryan. “And if they do need help with that, we’re here as a resource to help them.”
The six steps to leaving a legacy
To help clients establish a philanthropic plan, PGF uses a six-step planning model: identify your values, identify your causes, identify your geographic focus, research your options, evaluate your choices, and designate your donations.
“We’re here to help our clients achieve their financial goals. For a lot of people, philanthropy is an ambition that they have but they don’t know how they’re going to meet it because they are not familiar with the charitable vehicles,” says Jess Merber, Associate Director, Private Giving Foundation and Philanthropic Advisory Services at TD Wealth.
“We’re able show them a path to be able to build toward achieving their goal. It’s all part of a philanthropic advisory services and this is a way that we can make it easy for our clients and easy for our advisors, and ultimately help our clients achieve their ambitions.”
PGF follows the four pillars of wealth management established by TD Wealth: build net worth, protect what matters, implement tax-efficient strategies, and leave a legacy. Ryan says Philanthropic Advisory Services educates clients on the most tax-efficient ways to donate, so more money can flow to charitable causes and have a greater impact. For example, donating publicly traded securities into a charitable foundation eliminates the capital gains tax that would be otherwise incurred from selling securities.
“Once funds are contributed to your donor-advised fund, the funds are invested. The board has the fiduciary responsibility, like the board of any foundation would have, and invests the funds very prudently,” says Ryan.
“The earnings inside a foundation or a donor-advised fund are tax exempt, so you get the tax relief when it goes in, and it’s then growing tax-free.”
Establishing a fund through PGF also encourages family involvement, and is a way to bring a family together to discuss shared values, make a greater impact and establish a charitable legacy.
For the Allibhais, who have five children and 12 grandchildren, it’s a way to establish a legacy of giving for the next generation.
“Our kids and grandkids have been taught the same values too, and we are hoping that they will follow our traditional act of giving through our foundation and participate fully,” says Almas.