Q: How do I open the topic of philanthropy or giving with my clients?
Financial advisors usually know more about their client's financial situation than anyone else, and after a time of relationship building, it's your responsibility to open up this discussion. ADVISORS with Purpose offers some great ideas here.
Q: What are the giving options for my clients?
CNCF offers a wide variety of giving options, and we will work with you and your client to decide what fits best with their own philanthropic goals. See a summary of options here.
Q: How does a donor-advised fund work?
Your client can establish a donor-advised fund with a name they choose to accomplish their giving needs.
- To distribute gifts to charities while they live, a CNCF Giving Fund should be set up for your client.
- To establish a fund that will receive the proceeds of their Estate through a bequest or beneificiary designation, a CNCF Legacy Fund is appropriate to set up while they still live, leaving clarity for what happens after death.
At the time of donation, the client will receive a donation receipt for the full value of their gift.
Q: What is the minimum gift required to start a fund?
A donation of at least $2,000 allows your client to set up either type of donor advised fund. In the case of a Legacy Fund, a plan should be presented to show funding to $50,000 within the first two years.
Q: What type of assets can my client use to start a fund?
Gifts can be made in several forms including:
- cash,
- publicly traded securities, bonds and mutual funds,
- life insurance policies and/or proceeds,
- registered asses (RRSP, RRIF),
- charitable remainder trusts,
- private property, and
- bequests.
CNCF will work with you and your client to customize a giving approach that considers personal interests and tax planning needs.
Q: Is it possible for me, as their financial advisor, to continue to manage their fund if it is a Legacy Fund?
Yes, CNCF offers that choice to your clients, even though the assets would have been irrevocably gifted and the account would be in the name of CNCF. Their other alternative is to add their contribution to CNCF's investment pools.
Q: What are the tax benefits for my clients if they give through CNCF?
CNCF offers the maximum possible charitable tax advantage available by law, and, because we are a public foundation serving many clients, we have greater flexibility on matters such as minimum annual distribution requirements.
Q: Can my client name a successor to their fund(s)?
We encourage your client to name a successor (or successors) to their donor advised fund because we believe careful management of God's assets is simple stewardship. If they do not name a successor, or after the successor's death, the Foundation's Board of Directors will continue to use the funds in accordance with your client's wishes.
Q: Why should my client put this trust in the CNCF Board of Directors?
All CNCF Staff and its Board of Directors subscribe to our statement of faith and are required annually to review their lifestyle and actions according to that statement.
Q: Can my client distribute gifts to any charity? Are there guidelines to consider?
CNCF and its board of directors will accept distribution recommendations that further the work of and are consistent with CNCF charitable purposes, and are made to qualified donees as that term is defined in the Income Tax Act (Canada).
CNCF and its Board of Directors will not accept distribution recommendations that contravene Biblical direction, would directly or indirectly benefit the client or his/her immediate family or any other person who has contributed to the Fund, as defined by the Income Tax Act, and does not meet the minimum distribution requirement of $250.
For more details and the answers to many more questions, read more.
