Voluntary vs. Involuntary Philanthropy: Which Cheque Do You Want to Write?
For Canadian business owners, writing cheques comes with the territory. Payroll, suppliers, taxes, and reinvestments into growth are routine. But there’s another cheque you may not have thought much about—the one that represents your philanthropic footprint.
The truth is simple: your money will go somewhere. Either it will be directed toward government-funded programs through taxes on income, capital gains, and estates—what we might call involuntary philanthropy—or it will go to causes you choose to support through voluntary philanthropy.
The question is: which cheque would you rather write?
Involuntary Philanthropy: Giving by Default
Every Canadian contributes to society through taxes, and business owners shoulder a particularly complex mix of corporate and personal obligations. While taxes are a fact of life, they also represent an involuntary form of philanthropy. Your dollars are allocated toward programs and services, but you have no say in how they’re spent.
Consider these realities:
In 2023, Canadian governments collected over $500 billion in tax revenues at the federal, provincial, and municipal levels combined.
Business owners, in particular, face additional tax layers through corporate earnings, dividends, and capital gains on business shares. Upon death, most assets are deemed to have been sold, often creating significant estate obligations before wealth can transfer to heirs.
While these contributions fund healthcare, education, infrastructure, and other national priorities, they rarely reflect your personal values or vision for impact.
In this sense, involuntary philanthropy is about contributing without choosing.
Voluntary Philanthropy: Directing the Impact
Voluntary philanthropy, on the other hand, lets you decide where your money flows. As a business owner, you are uniquely positioned to amplify that impact by aligning giving with your personal values, your corporate mission, or your community legacy.
According to Statistics Canada, Canadians gave $12.7 billion in charitable donations in 2023, an increase of nearly 12 percent from the prior year. Yet the share of Canadians donating has been steadily declining, from 68 percent in 2018 to just 54 percent in 2023. Business owners, with both resources and influence, can help reverse that trend.
Some of the benefits of voluntary giving include:
Control: You choose which causes, charities, or community initiatives to support.
Legacy: Philanthropy allows you to embed your values into your family or business succession plan.
Visibility of impact: Unlike taxes, where the end use can feel distant, charitable giving provides tangible results you can see—whether that’s a hospital wing, a scholarship fund, or a community program.
Engagement: Involving family or employees in giving decisions fosters shared purpose and stewardship of wealth beyond dollars.
For business owners, voluntary philanthropy can also be structured through corporate giving, foundations, or family-led initiatives, allowing you to integrate generosity into the DNA of your enterprise.
Which Cheque Would You Rather Write?
At the end of the day, both forms of philanthropy—voluntary and involuntary—are inevitable. Every dollar you earn will ultimately flow somewhere. The only real choice is whether you want to direct that flow or leave it to be determined on your behalf.
For many business owners, the answer is clear: they’d rather write a cheque that reflects their values, not just their obligations.
Final Thought: Put Purpose Behind the Cheque
Philanthropy doesn’t have to be accidental. As a business owner, you have the ability to make generosity a deliberate part of your plan. That choice can help create a legacy that outlives your business, supports your community, and gives your wealth deeper meaning.
If you’re wondering how to align giving with your broader financial and business goals, speak with your WealthCo advisor. Together, you can explore strategies to ensure that the cheques you write reflect not just what you owe—but what you truly stand for.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Canadian tax and estate laws are complex and subject to change. Please consult your WealthCo advisor and other qualified professionals before making decisions related to philanthropy or wealth planning.
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