Donor Information to create a better Community
The Community Foundation helps donors from all walks of life connect, with those in need and with the causes they wish to support. Gifts large or small, made now or in the future, are carefully managed in permanent endowment funds. Donors can be assured that their gifts will be making a difference now and forever.
Gifts are pooled and invested. Prudent investment of the endowed funds allows charitable grants to be made from the investment income, while the principal remains untouched. As a donor you can create your fund or contribute to an existing fund.
The Foundation acts as a vehicle to serve donors with varied interests at various levels of charitable giving. We act as a link between those donors and the charitable agencies in the community that can most effectively and efficiently carry out the objectives and desires they have for their funds.
We offer maximum flexibility in terms of assets that can be used to create a fund, options for the use of donor’s gifts, and benefits to donors, such as involvement in the granting process and a lasting legacy in their name.
This webpage outlines a number of ways of giving to the Foundation. We invite you to review the suggestions and find those that best suit your situation.
Importance of Relationship
We want to build a long-term relationship with you as a donor. We want to know what opportunities and information we can offer to you to meet your needs as a donor. We want to get you involved as a donor so that you understand the impact of your gifts to the Foundation and what your donation has done. We want you to know that your donation has made a difference.
There is no Rush!
It is important that you, as a donor, understand well the operation of the Lac du Bonnet and District Charitable Foundation before making a gift. You will be able to move from a position of initial interest to intimate knowledge about the Foundation’s work in the community. Before making a charitable donation, the Foundation strongly advises donors to seek professional financial advice.
If you feel you would like to commit yourself to a gift in the future you can do that too. A form for that purpose can be obtained at the following link: Letter of Intent for a Future Gift to the Foundation.
Types of Funds Planned for the Future in our Foundation
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. The procedure for establishing a fund within the Foundation is discussed in the FAQ section of our website. Funds can be earmarked in a number of ways:
Undesignated, Unrestricted or General Endowment Funds
Community General Endowment Funds
Community Unnamed Fund
The Community Unnamed Fund is the easiest and simplest way to give to the Foundation. In general, grants from this fund have no designation for their use. The Foundation will designate the grant distribution from this fund. The fund will support a range of charitable projects in the community. This fund is best able to address the changing needs of our community. There are three contribution membership categories; Friends of Lac du Bonnet up to $99, Century Club $100 to $499 and Builder Club $500 to $999.
Community Named Fund
The Community Named Fund is similar to the unnamed fund but it can be named. The income from this fund will respond to grant applications received by the Foundation from community organizations in an ongoing basis. The fund will support a range of charitable projects and is best able to address the changing needs of our community. An example is a fund named in memory of some individual. There is a minimum contribution of $1,000.
Designated or Targeted Endowment Funds
The Lac du Bonnet & District Charitable Foundation currently has most of its invested funds with the Winnipeg Foundation for investment management. The Winnipeg Foundation will set up a sub-fund within our main investment fund but a minimum of $5,000 is required to set up such a sub-fund. Some examples of some sub-funds are described below.
Administrative Endowment Fund
This is a fund established to address the Administrative costs of the Foundation. This will usually be set up by the Foundation for its own use to defray administrative costs. The minimum contribution is $5,000.
Field of Interest Fund
The Field of Interest Fund will focus on a particular subject or area of interest, such as medical education for someone in the community. With your gift, you define the charitable field, such as arts, youth, seniors and culture or health. Funding is not limited to one organization. You, as a donor, will entrust the Foundation to select specific projects that your fund will support. The minimum contribution is $5,000.
The Designated Fund will make grants to specific qualified donees, you name the specific agencies or favourite charities to benefit from your fund. Your fund will benefit charitable organizations personally meaningful to you indefinitely. If the organizations unexpectedly cease operation or significantly changes its focus, the Foundation will redirect the grants from your fund to a similar charitable organization. The minimum contribution is $5,000.
A Scholarship Fund provides awards to support deserving individuals pursuing advanced education or training. An example may be someone wanting to become a medical doctor. You can set the criteria to determine how students will be selected for the award. The Foundation will not review or select the applicants to receive the awards. Usually this is for the educational institution to do. The minimum contribution is $5,000.
Donor Advised Fund
A Donor Advised Fund will allow you to be actively involved as an advisor to the Foundation. You will work with the Foundation staff and Board in assisting and identifying the charitable organizations that benefit from your fund. This type of fund can be considered as having your own private foundation. It is the most effective alternative to creating your own foundation. The minimum contribution is $5,000.
Agency Endowment Fund
Charitable organizations that are recognised by the Canada Revenue Agency may establish an endowment fund within The Lac du Bonnet & District Charitable Foundation. In this case, the Foundation accepts the administration and investment responsibilities while the organization receives the distributable income on an annual basis – in perpetuity. The purchasing powers of the monies are maintained for the future. An example of such an endowment fund would be a fund created by the Lac du Bonnet Historical Society within the Foundation. The investment proceeds would then be used by the Society for its own purposes. For more information, see a Board member regarding Agency Endowment Funds. The minimum contribution would be $5,000.
A flow through fund may be established depending on the size of the donation (this will be decided on a case by case basis) and both the capital and income will be available for distribution. In most cases for either an endowment or a flow through fund the donor will have selected a name for the fund.
Other ways to preserve and enhance the quality of life in Lac du Bonnet
Youth in Philanthropy
This is a program to make our youth aware of community philanthropy and to get them involved in community activities as one way to help inspire and insure their participation into the future. Our youth are already making a difference in more than 55 communities across Canada, and the momentum is building. Come and find out more about why youth philanthropy is here to stay. See Youth in Philanthropy.
Scholarships and Bursaries
These programs allow students in need in the community to be assisted by setting up scholarship funds. Scholarship funding can benefit the community in the long term by targeting students that will acquire skills that are of benefit to the community such as health care professionals. It would of course be important to have a dedicated Scholarship Fund in the Foundation.
There are significant events in one’s life such as anniversaries & birthdays that can be celebrated by suggesting that your friends and relatives wishing to provide gifts can make donations to the Foundation.
The Founders Club was a way to provide public recognition to the early contributors to a newly established foundation. A termination date of December 31, 2010 was set for the Founders Club. To become a member of a Founders Club would require a donation of $1000.
Consider the Lac du Bonnet & District Charitable Foundation as a beneficiary of your will as part of your estate planning. The Foundation could be considered as one of the family and receive a bequest equivalent to that of one of the other members of the family. In some communities, the community foundation has received very significant portions of some individual’s estates.
Leave a Tribute
This is a gift to the Foundation in memory of a loved one or good friend. It is a very important way to keep the memory of someone alive for a long time. When the donation is significant it can be as part of a Designated Fund if desired.
|Donation Options||Minimum Amount Required||Can you revoke the gift?||Do you get income or use during lifetime?||Subject to probate||Charitable tax credit available||When can the Community Foundation use the gift?|
|Bequest under a will||None||Yes, by changing your will prior to your death||Yes||Yes||After death in your final tax return or return for the preceding year||After Death|
|Insurance Policy (Foundation is owner and beneficiary)||None||No. If you don’t pay premiums, the Foundation can pay them, reduce death benefits, or cash in policy||No||No||Now and as you pay future premiums||After death|
|Insurance Policy (Foundation is irrevocable beneficiary)||None||No||No||No||Now. Premiums are tax deductible.||After Death|
|Real Estate||Check with foundation||No||Yes||No||Now||Immediately|
|Charitable Remainder Trust||Check with foundation – enough to justify required legal/trust fees||No||You can use property and receive all income generated||Only if gift made under your will||Now, based on gift value adjusted for life expectancy||After death of life tenant (income beneficiary)|
|Gift of a Residual Interest||Check with the Foundation||No||Yes||No||Now, based on gift value adjusted for life expectancy||After Death|