This toolkit, developed by Community Foundations of Canada, provides a full range of information and tools to help you in your work with clients, and to learn more about community foundations.

 

This booklet is a guide for those considering establishing a private foundation. Read it here.

Advisors

Creating a Fund at HCF

Once your client has decided to work with HCF, the process is quite straightforward.

1. Face-to-Face Discussion

Generally, we prefer to meet with the client face-to-face to explore his/her philanthropic wishes and to develop a plan together that meets these objectives. Some of the areas of exploration and decision would include the purpose for which the gift is being made, the type and amount of gift under consideration, the naming of the fund, the degree of continuing involvement the donor wishes to have in making granting decisions, the type of reporting and recognition that the donor wishes to receive, etc.

These discussions form the basis of an understanding between the Foundation and the client as to the terms of a gift. They are either drawn up as a written agreement between the Foundation and the donor or set out in the terms of a bequest. In both situations, the professional advisor is an integral part of the process.

2. Gift Amounts

Gifts of any size are welcome and appreciated at HCF.

Certain types of funds, however, require a minimum gift to enable appropriate administration and grantmaking. In some cases, donors may choose to build the minimum amount required over time. When a fund is set up through periodic contributions, grantmaking will begin when the minimum balance has been achieved.

There is no minimum gift required to add to any existing or "open" fund at HCF.

3. Documentation to Establish a Fund

HCF enters into a written agreement with each donor intending to establish a permanent endowment fund. This agreement sets out the purpose of the fund, the responsibilities of the Foundation and any specific requirements relative to the particular fund. The wording has been designed to meet the Canada Revenue Agency's requirements for charitable giving. Copies of this agreement are provided to the client (and the advisor if appropriate.)

Regardless of the type of gift (during their lifetime or on death), donors can be assured that their goals will be carried out forever.

Sometimes for gifts by bequest, clients are more comfortable incorporating all the details of their plans into the will clause(s) rather than sharing this information with the Foundation staff. We understand and accept this desire for privacy, but regret that we then are unable to express the appreciation of this contribution to the future health of the community