Building Philanthropic Foundations Is Not Only for the Super Wealthy
Being a developed country, Canada is a good place for those who want to pursue philanthropic endeavours. It’s true that any act of giving, however small, is a valuable contribution, however, those who want to take their humanitarian efforts to the next level can look towards building philanthropic foundations based in Canada and extend their charitable reach throughout the world.
How does one build a foundation, though? Isn’t this something ideal only for the super-wealthy people? That isn’t so. For anyone who wants to practice committed philanthropy, building a foundation is feasible even without having millions in net worth. The fundamental question lies with the funding. What is a foundation going to use for funds?
Variety of Funds
There are many different types of assets /property that can be used to fund the philanthropic activities of a foundation. Such eligible property includes cash, publicly traded securities, tangible assets (e.g. jewelry, collector’s items, and art), i), life insurance, real estate, and alternative investments (e.g. partnerships and private equity). For someone who has a substantial amount of any of these, building a foundation would been easily attainable.. It doesn’t mean, though, that those without a lot of these should just give up on foundation building plans.
Start Building Funds
Another way to build a foundation is to use a donor-advised fund(DAF) rather than a traditional trust or not for profit corporation structure to hold the donated assets. . Through philanthropic support organizations, such as Canada Gives, donors can establish DAFs that they can manage – building the funding base over time and disbursing funds from their DAF to their preferred charities. By using a donor advised fund, it is easier to create a charitable plan, and eventually build a sustainable, long-term source of funding. Taking their charitable giving from cheque writing to committed philanthropy.