Imagine John: a generous, slightly disorganized 74-year-old retired teacher living in Ontario.
When he had capacity, John gave regularly to a handful of charities that meant a lot to him: his local library, a few hospitals, the community foundation, and the nearby food bank. There wasn’t much of a system. Sometimes he’d write a cheque—or even send cash in the mail. Other times, he’d click a link in an email and donate by credit card. With a few organizations, he was a monthly donor—on and off, depending on what was happening in his life. He didn’t talk about it much, but in any given year, John would donate anywhere from a few hundred to a few thousand dollars.
As John got older, he developed dementia and eventually lost the ability to manage his own affairs. Fortunately, he had a Power of Attorney (POA) in place that named his son, Shane, to step in and handle his finances when the time came. Like most people, John hadn’t considered how losing capacity could affect his charitable giving. His POA didn’t say anything about donations, and he’d never talked to Shane about where he gave or why. So, when Shane stepped in, he was left guessing. He didn’t have clear permission to continue the donations, and it was tough to piece together who John had been supporting, how often, or how much. Out of caution, he chose not to continue any of them.
The thing is, John almost certainly would have wanted his donations to keep going. He just didn’t realize he needed to take a few simple steps to make that happen.
What’s a Power of Attorney?
A POA is a legal document that someone creates while they are mentally capable. It gives another individual the legal authority to make certain decisions and do certain things on their behalf. In most cases, someone creates a POA so that a trusted friend or loved one can take care of things for them if they become incapable in the future—whether due to dementia, illness, an accident, or other circumstances. The person who is given this authority is called the “attorney”.
In Ontario, there are two main types of POAs:
Under Ontario’s laws, the person acting as someone’s attorney under a POA can only make charitable donations from the person’s property if,
(i) the POA document explicitly authorizes these gifts, or
(ii) if there is evidence that the person made similar charitable expenditures while they were capable.
How to make sure your charitable giving continues
If you want your giving to continue, you’ll need a plan. And for best results, that plan should cover two things:
Let’s start with making sure your attorney knows what you want. This one’s all about communication. Talk to your attorney and your family. Let them know which causes matter to you, how much you typically give—whether it’s a set monthly amount or a percentage of your income—and whether you’d want that to continue if you were no longer able to manage things yourself.
You don’t need anything complicated. A clear conversation goes a long way, and writing it down is even better. A simple note outlining your wishes and giving history can make it much easier for your attorney to follow through later on.
Now for your Power of Attorney. Your POA should clearly state that your attorney has permission to continue making charitable gifts on your behalf. The good news? It’s easy to make that happen. Whether you’re working with a lawyer or using an online platform, just make sure your POA includes that specific permission. It’s a small detail that makes a big difference.
The bottom line
Most people don’t spend a lot of time thinking about what would happen if they lost capacity—and honestly, fair enough. But when it comes to charitable giving, not planning ahead can mean well-intentioned donations suddenly stop.
For donors, it’s pretty straightforward: talk to your family and your attorney about your wishes, make sure your POA includes clear instructions for charitable giving, and—bonus points—keep your favourite charities in the loop.
For charities: this is a great opportunity to help supporters take simple, proactive steps to make sure their generosity keeps going. A little planning now can go a long way—for your donors and for your mission.
Daniel Goldgut is the co-founder of Epilogue, an innovative online platform revolutionizing estate planning in Canada. With a background in law and years of experience in private practice, Daniel transitioned from a legal career to entrepreneurship, driven by a passion for making Wills and estate planning more accessible and affordable for everyone. He collaborates closely with charities to enhance their legacy giving programs, helping organizations grow their impact. daniel@epiloguewills.com
