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What is a Legacy?
What is Philanthropy?
The Lac du Bonnet & District Charitable
Foundation – What Is It?
How did the Lac du Bonnet & District Charitable
Foundation get started?
What is the role of the Lac du
Bonnet & District Charitable Foundation?
How Does the Lac du Bonnet & District Charitable
Foundation Work?
What is a Fund in the Lac du Bonnet & District
Charitable Foundation?
How is a fund Established?
What Fees are Charged?
Can donors combine their gifts?
How are Grants Made?
What are the Advantages of using a Community
Foundation?
A legacy is a gift or bequest usually given through a will and
is money or other personal property that can be of value to the
receiver. A legacy can also be something transmitted by or
received from an ancestor or predecessor or from the past. The
ideas and work of the ancient philosophers can be considered as a
legacy in that still guides us today. For many people their children are for them a
legacy
that is passed to the future.
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Philanthropy is the act
of donating or giving private money, goods, services, time
and/or effort to support a socially beneficial cause, with a
defined objective and with no financial or material reward to
the donor. Philanthropy may encompass any altruistic activity
intended to promote good or improve human quality of life.
Philanthropy is usually the act of giving while one is still
alive while a legacy or bequest is giving through ones will.
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A community or charitable foundation is
a registered public charity that is non-political, non-religious
and it is self-governed. There is a Board of Directors, which
is comprised of up to 12 local citizens. Usually, these
board members are already
recognised as leaders and are frequently involved with community
activities.
A community foundation is a collection of endowed funds
established by individuals and corporations – a community of
donors – to enhance the quality of life in a particular area.
These funds are pooled and a board of directors supervises the resulting investment portfolio.
The income from the portfolio is made available for distribution
to support charitable activities in the local community.
The Lac du Bonnet &
District Charitable Foundation is such a local charity, which is
focused on the creation of a group of permanent endowment funds.
These funds are invested and the investment proceeds are then
available for
distribution to the community of Lac du Bonnet for the good of
the community. The Foundation will become a general provider for
several types of charitable funding in the Lac du Bonnet trading
area.
The Lac du Bonnet & District Charitable
Foundation
will
attempt to create a better community today, tomorrow and forever
by:
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Providing donors
with choices through a wide range of giving options,
appropriate recognition and a full range of charitable causes
they may wish to support.
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Helping
professional advisors provide added value to their clients as
far as charitable giving is concerned.
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Making responsible
grants with a commitment to funding and supporting all
facets of our community. With our broad view of community
needs and opportunities we are uniquely placed to make
grants to a wide range of charities throughout the general Lac
du Bonnet area.
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Participating as
knowledgeable partners in community life, the Foundation
contributes a level of broad yet local and regional charitable
expertise.
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The original idea for the Lac du Bonnet & District Charitable
Foundation came from a local resident, Dr. Bob
Rutherford, who in his later years spoke of the need for
creating a charitable foundation in the Lac Du Bonnet area. Dr.
Rutherford had been a long time resident in Lac du Bonnet having
been either a seasonal resident or permanent resident since the
1930's. Dr. Rutherford had maintained a farming operation as a
hobby since the early 1950's. He had been very active in
the Lac du Bonnet area in the health field and enjoyed curling,
golf and many other community activities. Dr .Rutherford passed
away before his dream became a reality.
Dr. Rutherford’s son,
Mauri, a lawyer, promised his father that he would assist to
get a community foundation established. A name had been applied
for and reserved for the foundation. The basic framework for
the incorporation of the Foundation and the charitable status
application had been prepared. The formation of a
foundation still did not occur as it was still only a dream that
a few individuals had for the community.
More recently, in about
the year 2000, local resident Cliff Zarecki began working with
Gerald Hawranik, Member of Legislative Assembly for Lac du
Bonnet, on the concept of starting a foundation in Lac du
Bonnet. Gerald Hawranik was instrumental in starting the
foundation in the Beausejour area.
Cliff met with several
Lac du Bonnet volunteer organizations including the Lions and
the Knights of Columbus and organized presentations about a
foundation. These presentations were given by Mr. Hawranik and
the executive director of the Thomas Sill Foundation. At that
time a critical mass of interested people could not be
established to enable the idea to proceed. The
matter was delayed for some time for various reasons. More
recently, it became known that another group was also interested
in getting a foundation established in Lac du Bonnet.
In 2006 Rural
Municipality of Lac du Bonnet Councillor Gus Wruck contacted
Cliff Zarecki to discuss trying once again to get a foundation
established in Lac du Bonnet. Mr. Wruck and Mr. Zarecki
organized meetings. Mauri Rutherford became aware of the
renewed effort to establish a local foundation, contacted Cliff
and Gus, and offered his support. Contact was made with that
group and both groups joined forces and utilized the reserved
name, the corporate vehicle and the earlier work done to
establish the Lac du Bonnet & District Charitable Foundation.
During this time
many other people had also recognised the need for a community
foundation and had discussed the possibility on numerous
occasions. The result was
that the renewed impetus of the joined forces expedited the
creation of the Foundation. This time the required
critical mass of interested people was established which
included the initial 10 members of the Lac du Bonnet and
District Charitable Foundation Board of Directors. The
foundation became a reality in 2008 when it was legally
incorporated and charitable status with Revenue Canada was
obtained.
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The Foundation has three main roles:
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The Foundation will offer a wide range of giving options, professional
management of the donated funds and protection of the integrity of the donors’
gifts into perpetuity.
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The Foundation will make grants to community and other
organizations for the good of the community. The
Foundation will have a very diverse,
broad reach mandate. The Foundation will offer a variety of donor directed
options for specific grant making. In addition, through the
undesignated funds, the Foundation, will with a broad view of community needs and
opportunities, make grants to a wide
range of charities throughout the general Lac du Bonnet
trading area.
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As knowledgeable partners in community life, the Board of
the Foundation is in a
position to help our citizens fulfill their charitable goals
of providing a legacy to the community.
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The Board will be a catalyst for leadership to the community on issues of
charitable nature during the grant making process.
These roles allow the Community Foundation to be a catalyst
and resource for philanthropy throughout the Lac du Bonnet area. It is a
vehicle for generous citizens who want to give something back to
the community both during and after their own lifetime.
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The Foundation is governed by a volunteer Board appointed by a
Nominating Committee which is a sub-committee of the Board of
the Foundation. The President of the Board will always
serve on the Nominating committee.
Directors will typically serve a three-year term to a maximum of two
terms. The Board governs the Foundation within the By-Laws of
the Foundation, regulations
of the Community Foundation Acts and those of Canada Revenue
Agency relating to public foundations.
Although the Investment management services will be
professionally provided, the exact provider is not yet known.
It is anticipated that these services will be provided by the
Winnipeg Foundation.
The Winnipeg Foundation is administered by professional staff. Operating
expenses are paid from their administrative fees,
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A fund is the term used to describe a donor’s contribution. That
contribution will, in the majority of cases, be held in
perpetuity in a permanent endowment fund. This means that the
capital will not be touched but will be held permanently and
only the income made available for distribution.
For investment purposes, all funds are pooled together.
However, as part of the overall stewardship of the donations
placed in the Foundation’s care all funds are accounted for
separately. Investment income is calculated quarterly and
allocated proportionately to each fund. A fund begins to benefit
from pooled income from the first full quarter but a
distribution is not made until the donation has been invested
for a full year.
Certain minimum fund levels apply due to the fact that an
endowment fund is created as a permanent entity and the degree
of complexity inherent in certain fund types. The minimum can be
achieved over an agreed period of time. The Board has
established the minimum fund levels for each fund. More
details about each of the funds
are shown on the Donor Info
page.
A donor may establish a Pledged Fund with a minimum of $500 with
a pledge to increase the required value of the minimum for the
type of fund over
an agreed period of time.
Funds can be created with tax-exempt donations made in any
appropriate form, including cash, securities, real estate or
life insurance.
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This is quite simple. The process is initiated by advising the
Foundation of your wish to establish a fund. The information
required includes the name of the proposed fund, its purpose,
and whether it is to be open to other donors, or closed.
We discuss the many options available and then assist with the
preparation of a fund agreement. This agreement is like a
contract tailored to your interests and needs, and after Board
approval, it is signed by all parties. Any desired restrictions must
be placed on the fund at the time of its creation. The fund can
be added to at any time, but the purpose or purposes must remain
consistent with the stipulations in the original agreement.
Should the donor’s interests change over time, one or more
additional funds can be created to achieve alternative
charitable purposes. A gift agreement will be created for each
fund. However it must also be remembered that the long passage
of time can outdate a funds purpose in the rapidly changing
times in which we live. A fund for a disease now conquered, or
for an organization that has ceased to exist are but 2 examples.
The Board of Directors has the authority to change the purpose
of a fund so as to carry on the donor’s intent if, through a
change in circumstances, the donor’s original instructions
cannot be carried out.
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Gifts may be combined into a single fund. Donations are welcomed
for the Community Fund (the general endowment fund), as well as
for some existing Field of Interest Funds and Designated Funds.
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There is no charge to set up a fund in the Community Foundation.
The Foundation will have its own Administrative Endowment Fund.
The income from this fund will help to offset administration
costs.
The annual administrative fee charged to all funds has not
yet been set but could be in the order of 1 or 2 % of the
balance.
This fee, some of which will go to the Administrative Endowment
Fund, is designed to cover most of the Foundation’s
administration costs – the investment management fee and
custodial fee are direct charges to investment income.
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The Foundation may have up to two granting cycles each year.
All potential applicants complete a
standard application form. The grants committee is made up of
Board Members and possibly a group of community volunteers. This
committee reviews all the applications and makes their own
individual decisions basing their judgments on both objective
and subjective criteria. They grade each application on a points
system and then meet to jointly agree upon those applications that
have the greatest priority for the community and how they are to be
funded. The process may include presentations from applicants or
site visits by committee members.
All grants are accompanied by an agreement that details the
conditions under which the funds are being awarded. All grant
recipients are required to provide details of their evaluation
process, present final reports and to include impact statements.
This allows the Foundation to have some sense of the overall
effect these grants are making for the entire community.
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Simplicity
A gift to the Community Foundation simplifies charitable
giving. Several charitable organizations or causes can be
provided for with a single gift. For example, a life insurance
policy could establish a permanent capital fund in the name of
the donors) and the annual earnings divided into thirds
between a school or college, Big Brothers/Big Sisters, and
disadvantaged children.
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Flexibility
Almost any charitable intent can be realized, by choosing from
among the endowment fund types offered by the Foundation.
Furthermore, the range of charitable possibilities is very
broad, encompassing: arts, culture, heritage, community
festivals, social services, healthcare, education, nature,
recreation and sports.
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Permanence and Continuity
The donor is assured that the fund will remain intact in
perpetuity. The Foundation has a Preservation of Capital
Policy, which ensures that the original gift is protected.
Only the annual earnings can be spent.
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Recognition
All donors receive recognition in our Annual Report and other
publications. In addition, all grants from a fund established
by the donor are identified to the recipients by the name
given to the fund. Of course, if a donor requests anonymity,
the Foundation will give assurance that such wishes are
respected.
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Investment Expertise
The Foundation sets a conservative investment
guideline and contracts with a professional investment
management service, requiring and expecting an excellent
return on investment at the lowest cost.
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Tax Benefits
The Foundation qualifies as a registered charity under the
Income Tax Act. Thus, gifts made at any time will result in
important income tax advantages. Gifts of capital property
qualify for a reduced capital gains inclusion rate. Your
financial advisor can provide you with information on this
aspect of charitable giving.
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Cost Effective
With an overall low administrative fee, the
Foundation provides an attractive alternative to those
considering the establishment of a private foundation.
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Community Effectiveness
In Canada and in Manitoba, Foundations through their active role in their communities, and
through their rigorous grant process, have proven to make
significant differences in their communities with the grants made.
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