Donors often have similar questions when considering their gift planning. We've tried to answer the most common ones here. If you have others, please just ask.
Q: How can I use CNCF to establish a donor-advised fund or private foundation? Is there a minimum donation amount?
To establish a donor-advised fund, you can donate either cash or non-cash assets (securities and mutual funds, RRSP's and RRIF's, life insurance proceeds, bequests, other capital holdings) to CNCF with a market value of at least $25,000. Additional contributions can be made at any time.
Q: What happens to my donation?
Donors most often choose the option to have their own financial advisor manage the money in their donor-advised fund on CNCF's behalf, requiring a minimum balance of $25,000. When donors desire to hold their donation for a time before distributing it to charities of their choice, the investment is held in a professionally managed portfolio of bonds, stocks and cash. When a donor has indicated that they would like their fund distributed to charities in a shorter timeframe, the fund is held in interest earning savings accounts.
CNCF also manages a pool of investments for those who prefer not to have their own fund managers.
Q: Will I receive a tax receipt for my donation?
CNCF will issue tax receipts to all donors immediately after the gift has been received.
Q: Will I receive a tax receipt for distributions made from my fund?
Your original donation to CNCF will be receipted. Therefore, you will not receive a charitable tax receipt for distributions made from your fund. If you receive one from the charity you recommended a grant to, you are unable to use it.
Q: Is there a tax advantage for giving a gift of publicly-traded securities?
Yes, gifts of publicly-traded securities (stocks, income trust units, bonds, and mutual fund units) are exempt from capital gains tax when transferred to a registered charity. This is one of the most tax effective ways to make a charitable donation.
Q: Why would I give through CNCF rather than directly to the organization(s) I want to support?
Some reasons might be:
- CNCF can receive many types of gifts and asset transfers other than cash, while many charities are not equipped to do so.
- You will receive one donation receipt - keeping things simple.
- Through one gift or asset transfer, CNCF can grant gifts to many charities under your recommendation.
- Gifts can be made to charities without disclosing your name.
Q: Can I 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.
Q: I would like to give, but I can't make a substantial charitable donation during my lifetime?
You can set up a CNCF Giving Fund is a part of your planning and fund it at your death. Providing a donation at the end of one's life, after all financial commitments have been met, is a wise choice for many individuals. These deferred gifts provide a lasting legacy for the charitable causes most dear to your heart.
Options for giving might include leaving a bequest in your will, making CNCF the owner or beneficiary of your life insurance policy or RRSP/RRIF. CNCF will work with you to create a giving plan that best suits your personal circumstance and tax situation.
For more details and the answers to many more questions, read more.
For a summary of giving options and their characteristics, simply click here.