Purpose and Profit: Crafting a Business Legacy Through Philanthropy

How John Nicola’s vision inspired company growth and a culture of giving

Thirty years ago, John Nicola began growing a vision. “Sharing the Pie”, Nicola’s Wealth’s innovative approach to giving, integrates philanthropy into the firm’s core values, fostering a culture of generosity, both within the company and among its clientele.

It started in 1994, after Nicola had already been in the financial sector for two decades. He founded Nicola Wealth Management Ltd. with eight employees, offering mutual funds and financial planning, employing a commission-based wealth planning model that was typical at the time.

“We had $80 million in client funds and about 200 families,” Nicola says. “After six or seven years, I realized we had to make a complete shift if we were going to get anything besides organic growth.”

‘Share the pie’

In 2011, Nicola Wealth switched to a no-commission, fee-based structure offering investment products and other direct assets, like private assets and real estate paired with sophisticated financial planning. “Since then, we have grown nearly 20% per year,” Nicola says. “Today, we manage over $15.9 billion and employ 540 people across Canada.”

As the company grew, so did its focus on philanthropy. “Share the pie” became the cornerstone of the company culture. Embracing a “share the pie” mindset, the company integrated giving into its operations, increasing charitable donations to a percentage of revenue. In 2023 alone, this resulted in over $2.3 million donated through the Nicola Gives Back initiative. Additionally, the company introduced firmwide profit sharing and an employee share purchase program.

“Sharing the pie means sharing in the successes of the business with clients, staff and the greater community,” Nicola says. “If you take care of those three audiences, you never have to worry as s shareholder.”

Nicola Wealth Private Giving Foundation

In 1997, Nicola Wealth established Nicola Wealth Private Giving Foundation, which allows clients to establish donor-advised funds (DAF)—effectively helping them create mini foundations without the expenses.

“Through a DAF, funds are dispersed to any registered charity while the remaining amount grows, creating an endowment effect that gives in perpetuity,” Nicola says. “It’s a streamlined way for clients to give effectively, like having their own foundation, but more cost efficiently.”

When Nicola Wealth clients review their estate plans with their Wealth Advisor, they explore legacy issues and consider the best timing for their giving. Even those not naturally philanthropic might find giving today through the DAF model appealing for its tax planning benefits.

“We show our clients why they are better off financially to establish either a DAF or Foundation today rather than waiting until death and funding philanthropy through their will,” Nicola says. “Our clients experience the benefits of their generosity during their lifetimes and at the same time can leave a more impactful legacy—an ideal way to pay it forward.”

Learn more at nicolawealth.com/private-giving-foundation

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Nicola Wealth Management Ltd. (Nicola Wealth) is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required securities commissions.