Setting up a fund with the Community Foundation of the South Okanagan | Similkameen is very simple and can be done in several ways. If your client is making an immediate gift to the Community Foundation then it is best for us to meet with them in person at some point in the planning process.
If your client has designated the Community Foundation of the South Okanagan | Similkameen as a beneficiary in a will or life insurance policy then they may forego meeting with us to establish a fund agreement. However, whenever possible, we still prefer to meet with the client to ensure we honour their intentions for the gift.
Steps in Creating a Fund
The initial discussion with the client will explore questions surrounding their specific philanthropic wishes. We will determine the purpose of the gift, the type and amount of the gift, the name of the fund, the amount of ongoing involvement the donor wishes to have, and the type of recognition the donor wishes to receive.
Once these basic questions are answered, we will draw up a draft fund agreement for review.
2. Gift Amounts
The donor will be apprised of the gifting rules for each type of fund. Certain fund types have minimum donation amounts before the fund can be established. However, the client will always have the option of creating an “emerging fund”, which allows them to build up to the minimum fund amount over time.
Note that there is no minimum donation if the client wishes to donate to an existing “open fund”.
3. Documentation to Establish a Fund
The Community Foundation of the South Okanagan | Similkameen enters into a written agreement with each donor intending to establish a permanent endowment fund. This agreement sets out the purpose of the fund, the responsibilities of the Foundation and any specific requirements relative to the particular fund. The wording has been designed to meet the Canada Revenue Agency’s requirements for charitable giving. Copies of this agreement are provided to the client (and the advisor if appropriate.)
Regardless of the type of gift (during their lifetime or on death), donors can be assured that their goals will be carried out forever.
While most gifts by bequest are received without an existing contract in place, it is preferable that the Community Foundation have the opportunity to complete paperwork with the donor while they are still alive. This is important for several reasons:
- Meeting the donor and drawing up an agreement ensures that the Foundation fully understands the donors wishes.
- Specifying the beneficiaries of the Fund in the Fund agreement allows for the donor to amend the agreement at little or no cost compared to amending the beneficiaries in a will.