Canada Gives, donor advised funds and endowment funds for community foundations

Canada Gives in Perspective

You are someone who has made your mark in life. And now you want your legacy to leave the same kind of imprint. But how do you ensure that your charitable contributions or gifts have the impact you want? A private foundation offers you an
opportunity to focus and control your philanthropy but the time and costs required for administration and governance of a foundation can often be a deterrent. Donor advised funds (DAFs) offer an alternative to private foundations
for many donors, taking care of all the mundane administrative functions usually associated with a private foundation, leaving donors more time to spend on
what counts Giving Back. 

Canada Gives offers customized donor advised funds — The Best of Private & Public Foundations:

Canada Gives DAF accounts give donors more information, more often and with more choices than other donor advised funds.
 
As a result, Canada Gives DAF Foundation accounts offer the same level of satisfaction and involvement in philanthropy as a private foundation but free your time and reduce your costs, so that you can focus on giving, not administration.

The chart below provides a general comparision of the most popular ways to build a legacy.

MAKING YOUR LEGACY COUNT

Our Donor Advised Fund “Foundation accounts” help you create a Legacy that provides signicant gifts to charities year over year, while continuing your annual support to meet the immediate needs of your selected charities. You may allocate a portion of each donation for Today’s Funding (one-time gifts) and a portion as an endowment gift that will be invested and generate continuous funding to meet Tomorrow’s Funding needs.
Your charitable contributions will have a greater financial impact when you can support the causes that are important to you Today and Tomorrow
 

A Comparison Of Endowment Vehicles And Ways to Build A Legacy*
Public Foundations Offering Donor-Advised Funds Private Foundations
 

NON-PROFIT
COMMUNITY
FOUNDATIONS

FINANCIAL SERVICES
FIRMS – CAPTIVE
FOUNDATIONS

CANADA GIVES
FOUNDATION
ACCOUNTS

PRIVATE FOUNDATION
Set up One day.
No legal fees.		 One day.
No legal fees.		 One day.
No legal fees.		 Registration may take
11 months. Legal costs
from $10,000 to $25,000
Minimum
Initial Gift
(average)		 $5,000 to $10,000. $10,000 to $25,000. Donors can start with
$25,000 and build
foundations of $1,000,000
or more.		 Usually $2 million or
more.
Allocation of
Donations		 Community Foundation
chooses allocation
of each donation.		 Financial service firm chooses allocation of
each donation.		 CG allows the donor to
choose how much of
each donation should be allocated as a one-time gift for immediate funding and an endowment gift
for long-term funding.		 Usually established to manage endowment(s); however a private
foundation can accept both one-time gifts and endowment gifts.
Administration
(for Founding donors)		 Receives reports.
Selects charities.		 Receives reports.
Selects charities.		 Receives quarterly
reports.
Selects charities.		 Hold Board meetings.
Manage assets.
Keep records.
Select charities and
administer grants.
Annual
Reporting to CRA		 None required. None required. None required. Must file AIR every year and provide audited financial statements.
Investment
Management		 Community Foundation selects
investment managers.		 Captive with financial
services firm (in-house).		 Donor can recommend
their own investment
manager or adviser, or select from CG preferred managers. CG monitors
performance.		 Board hires, fires and monitors investment managers and have fiduciary obligations.
Annual
Expenses
(average)		  2% to 4%,
including investment
management.		 2% to 4%,
including investment
management.		 0.5% to 1.25%,
plus investment
management.		 Trustee, legal, tax, insurance, recordkeeping, investment management and staff.
Choice of
Charity		 Donor selects but
Community Foundation
actively promotes the charities in their specific community.		 Donor selects charities. Donor selects charities. Founding donor selects
charitable purpose at
registration.
 Annual Grants Community Foundation
determines amount
to grant.		 Financial services firm determines amount to grant. Donor determines
amount to grant.
(Canada Gives provides
minimum and maximum
payout available.)		 Board determines
amount to grant.
Privacy Anonymous giving if
desired.		 Anonymous giving if desired.  Anonymous giving if
desired.		 On public record and
frequently solicited.
Legacy Value Full recognition optional with each gift. Fund may transfer to Community Foundation after one or two generations. Full recognition optional with each gift. Founding donor selects successors; legacy remains with the family. Full recognition optional
with each gift. Founding donor selects successors; legacy remains with the family		 Full recognition with
each gift. (Not optional.) Founding donor selects successors; legacy remains with the family
*These are general assumptions for comparison purposes; individual service providers will vary. Canada Gives does not guarantee the accuracy of the information.

Is a Canada Gives Charitable Giving Account Right for You?

Every Charitable Donor is unique.  Canada Gives was designed to work with donors who are interested in setting their own philanthropic objectives and strategy and bringing their own priorities to their charitable giving. Contact us directly or through your professional Charitable Donations advisor and we can customize an individual or corporate Foundation account or an Annual Giving account that achieves your specific goals.

Canada Gives Charitable Registration #83306 2144 RR0001
You can find us in the Charities Directorate at www.cga-arc.gc.ca

  

Contact Denise Castonguay, Executive Director, to arrange your consultation:

Canada Gives
120 Adelaide Street West, Suite 2500
Toronto, Ontario, M5H 1T1

T (416) 644-1573
F (416) 367-1954
E info@canadagives.ca
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