To make it easier for you to prepare materials for clients, we’ve developed this text for a slideshow on the workings of Charitable Foundations. The presentation is in a Word file to make it simpler to customize the content to your client’s needs (there is no PowerPoint).
SLIDE 1
The Rise of the Charitable Foundation
How wealthy people give
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SLIDE 2
Private foundations are becoming an increasingly popular way for high-net-worth Canadians to fund their charitable giving
SLIDE 3
What is a charitable foundation?
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A nonprofit organization that either donates funds to other organizations, or provides the source of funding for its own charitable purposes
SLIDE 4
Features of a foundation
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• Usually created with a single, large primary donation
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• Generates income by investing that initial donation
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• Disburses, at minimum, a prescribed percentage of assets each year
SLIDE 5
Benefits of a foundation
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How are foundations better than other giving structures?
SLIDE 6
Tax-free growth of donated capital
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Within the foundation, donations compound tax-free
SLIDE 7
Control and flexibility
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Foundations offer control over:
- who gets what
- how much they get, and
- when they get it
SLIDE 8
Privacy or publicity
A foundation can ensure gift-giving remains anonymous . . .
. . . or, that gift-giving is public and well publicized
SLIDE 9
Ability to target small organizations
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Foundations make donating to small, community-based organizations easier
SLIDE 10
Longevity
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Tax-free donation growth can extend giving potential well beyond a single lifetime
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Family participation
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A foundation can foster a culture of family giving
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So what’s the catch?
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Ongoing costs and fees
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These costs make foundations best suited to larger donations
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Rule of thumb: $1-million or more
SLIDE 14
Minimum asset disbursement
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Foundations must distribute at least 3.5% of their assets per year
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If they don’t, they can lose their tax-free status
SLIDE 15
Foundations aren’t a hands-off giving structure
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They require ongoing participation and expense
SLIDE 16
A FINAL THOUGHT . . .
Foundations are more complex
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But for many wealthy givers, that complexity is worth it
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Interested? I can help
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• Professional expertise
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• Expert knowledge
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• Balanced unemotional perspective
SLIDE 18
Thank You
[advisor name]
[official title]
[address, etc.]