How David and Joanne Turned a Tax Bill Into a Family Tradition - Charitable Endowment

Meet David and Joanne. In their late 50s and still earning a high income, they reached out after selling a parcel of shares and realising they were facing a hefty tax bill. With their retirement goals already on track and some surplus cash available, we looked at options that could help reduce tax, while also creating something meaningful.

That’s when we set up a charitable endowment in memory of David’s mum, who had passed away from breast cancer.

They contributed $30,000 this financial year, instantly lowering their tax, while starting a tradition that brings the family together.

Each December, David, Joanne, and their three adult children come together to nominate a charity they’ll support for the year. This time it’s a breast cancer foundation, but they’ve left it open to change as their children’s passions evolve.

We also updated their will to include a clause about the endowment, so the kids can continue it as part of their family legacy because we have structured this giving to last in perpetuity.

And now the next generation is getting involved. Their son plans to contribute $5,000 next year into the same endowment and will receive a tax-deductible receipt of his own.

It’s become something bigger than just a tax strategy. It’s now a shared family tradition of giving.

If you’ve been thinking about ways to structure your giving (and get a tax benefit while you’re at it), let’s chat.