The "1% Rule" for Charitable Bequests in Canadian Wills

For most Canadians, the question "do you want to leave anything to charity in your will?" is uncomfortable because it triggers a calculation — how much can I spare without shorting my family? The "1% rule" framing developed by Canada's Will Power campaign side-steps this by reframing the question entirely: not "how much" but "what small percentage." Most Canadians who hesitate at dollar amounts engage readily with the percentage framing.

This guide covers what the 1% framing is, why it works, and how to use it in a Canadian will.

The Will Power campaign and the percentage framing #

Will Power is a national Canadian campaign coordinated by the Canadian Association of Gift Planners (CAGP). It launched to address a specific gap — Canadians broadly support charitable causes during their lifetime but relatively few leave bequests in their wills. CAGP research has tracked the bequest rate rising from roughly 5% of Canadians a few years ago to somewhere in the 8-10% range more recently, with a campaign goal of reaching 13% by 2030 — still a small minority relative to the much larger share of Canadians who give to charity during their lifetime.

Research from UK and US behavioural studies identified the framing problem. Asking "would you like to leave a specific dollar amount to charity" forces donors into uncomfortable calculations about family deprivation. Asking "would you like to leave a small percentage" feels modest, scales naturally, and produces dramatically higher bequest rates.

The 1% rule is the simplest expression of this framing. At 1% of estate residue:

• The bequest is real and meaningful for the charity
• The cost to each family heir is small
• The donor's broader estate plan isn't disrupted
• The "do I want to do this" question becomes a "yes, of course" question

The math in real estates #

For a representative Canadian estate distribution at 1%:

$150,000 estate, 1% = $1,500. Modest but meaningful. Each heir's inheritance reduced by $1,500 / number of heirs.

$500,000 estate, 1% = $5,000. Substantial charitable gift. Family inheritance reduced by $5,000 / heirs.

$1,000,000 estate, 1% = $10,000. Significant gift. Family inheritance reduced by $10,000 / heirs.

$3,000,000 estate, 1% = $30,000. Major gift. Family inheritance reduced by $30,000 / heirs.

The percentage framing means the gift scales with the donor's wealth automatically. A wealthier estate gives a larger gift naturally; a more modest estate gives a smaller but still meaningful gift.

Multiple percentages for multiple charities #

Many Canadians leave bequests to several charities. The percentage approach scales here too:

• 1% to a national health charity (e.g., Canadian Cancer Society)
• 1% to a local cause (a community foundation, food bank, hospice)
• 1% to a faith community (the donor's church, synagogue, mosque, temple)
• 1% to alma mater (university or college)

A total of 4% across four causes is still modest, still scales with wealth, and creates impact across the donor's full charitable interests.

Beyond 1% — when donors give more #

The 1% framing is a starting point, not a ceiling. Many Canadians leave significantly more:

5% range — typical for Canadians with deep philanthropic identity, often combined with naming charities as significant supporters 10% range — common for Canadians without children, where the philanthropic share of the estate is naturally larger 25%+ — characteristic of donors whose lifetime giving was substantial and whose estate philanthropy extends that pattern Substantially all — typical for childless Canadians with strong philanthropic identity, often through structured planned giving (charitable remainder trusts, donor-advised funds, etc.)

For most Canadian donors, the right number is whatever feels comfortable given the family situation, the donor's relationship to specific causes, and the overall estate plan.

Will language for percentage bequests #

Canadian will language for percentage bequests is straightforward. Common forms:

"I give to [Charity Name], registered as [Registration Number], an amount equal to one percent (1%) of the residue of my estate."

"I direct that one percent (1%) of the residue of my estate be paid to [Charity Name]..."

"I give to the following charities the following percentages of the residue of my estate: 1% to [Charity A]; 1% to [Charity B]..."

The lawyer or will-writing tool drafting the will handles the exact phrasing. The donor's job is to identify the charity(ies), the percentage(s), and any specific use restrictions (e.g., "for cancer research" vs. "for general purposes").

What about the tax benefit? #

For Canadian charitable bequests, the donation generates a charitable tax credit on the deceased's terminal tax return. The credit reduces (or eliminates) the terminal tax liability, effectively meaning the federal and provincial governments fund a substantial portion of the gift.

For a $5,000 bequest in a top-marginal-rate estate, the donation credit is roughly $2,400 (federal-provincial combined). So the family's effective "cost" is roughly $2,600, with the gift to the charity being $5,000.

For very large charitable bequests, particularly when paired with strategies like naming charity as RRSP beneficiary, the tax efficiency can be dramatic. See our RRSP to charity guide for the most efficient version.

What we focus on at It's Simple Will #

The will questionnaire in It's Simple Will prompts users to consider charitable bequests using the percentage framing (alongside dollar-amount options). Our Charity Guide Wizard helps donors who want to leave a bequest but don't yet know which charity to support. The Life Discovery Kit captures the bequest structure so the executor knows exactly which charities to distribute to.

See our companion guides: naming charity as RRSP beneficiary, verifying a Canadian charity's registration, and how the charitable bequest tax credit works.