Unlike big jackpot winners who spend a little time trying to figure out what to do with their windfall, $40 million jackpot winner, Tom Crist, needed a fleeting moment to decide what to do with his winnings. He gave it all to charity.
Tom’s wish was to donate his windfall in honor of Jan, his wife, who died in 2012 after her struggle with lung cancer. Tom donated his winnings to the medical center that cared for his late wife amongst other cancer-related charities.
Winning the Powerball is an exceptional opportunity to leave a legacy by giving to charity or setting up your very own foundation.
Best of all, Canada does not tax lottery winnings!
In the United States, if you win a lottery jackpot, it’s taxed. But it’s not the same here in Canada, especially when it comes to charitable donations.
According to Canadian law, donors don’t get to deduct the amounts donated. However, they receive non-refundable tax credits for the amount donated. In fact, you can get credits for donating as much as 75% of your income.
So, unlike in the States, when you donate your winnings, it’s a win-win all around.
Rather than spending her lottery win on herself, former Miss Quebec, Rachel Lapierre, used her windfall to start up a charity. While it wasn’t a Powerball win, Rachel did scoop C$1,000 a week for life in the Quebecois lottery.
Her goal was to do something she was passionate about, which is to help others. Rachel reportedly enjoyed volunteering and after running her own modelling agency and even working as a nurse, she decided to dedicate her life to charity.
After winning the lottery, she quit her job as a nurse and launched her very own charity called Le Book Humanitaire. Rachel was in the lucky position to fund the organisation herself, investing more than $70,000.
Way back in 2010, one lucky Nova Scotia couple hit the jackpot and their decision was an easy one – they decided to give the whole lot away to charity.
Violet and Allen Large won $11.2 million in the Lotto 649 Jackpot in July 2010. They were quick to divide their winnings up between friends and family, local charities, volunteer and community groups and hospitals.
The couple, who were in their seventies at the time, gave their nearest and dearest the same amount each and then moved on to donating to medical clinics and hospitals.
Violet had already suffered cancer and decided to make a donation to Halifax, where she’d had her chemotherapy and operation. They also split their newfound wealth between various local cemeteries, churches, organizations for diabetes and fire brigades. The couple kept just two percent of their winnings to live off.
Tom, Rachel and the Larges are inspirational. They’ve made sure they have left a legacy with their lottery wins, and you can, too.
If you’re the next lucky Powerball jackpot winner, you could also divvy up your funds between your favourite charities and organizations.
Better yet, consider setting up a donor-advised fund and leaving a lasting legacy. Instead of just dishing out cheques to local charities, you could heave off to the bank and set up your donor-advised fund. You can then donate money to whoever you like while the bank grows your cash in the markets so that you always have something to give back to those in need.
Alternatively, you could consider setting up a charitable foundation. That takes quite a bit of administration and accounting work, but you’ll probably be able to pay someone to do it for you.
With a big windfall in your pocket, the choices are endless, as are the opportunities to give back to your community and leave a legacy for life.
What would you do with your Powerball win?.