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.

Advisors

HCF as an Alternative

Summary of comparison of working with a community foundation versus establishing a private foundation:

Benefit	Community Foundation (CF)	Private Foundation
Outstanding community knowledge and impact	Expertise and advice in a wide range of granting areas including arts & culture, the environment, health, social services, education and recreation Cooperative relationships with other government bodies, funders and agencies in the city/region	Directors or trustees must perform, hire staff, or contract for these grantmaking activities
Assured legacy in Perpetuity	Named funds that exist in perpetuity	Named foundation Longevity depends on long-term family interests and succession plans
More impact for every dollar you give	No tax on capital gains on gifts of appreciated marketable securities Immediate tax savings for most gifts of private company shares Pooled investments often provide a better return with reduced risk Start up easy and minimal or no cost	Same tax treatment as gifts of marketable securities to community foundation Tax savings for private company shares deferred or denied Start up is lengthy process with associated costs of time and resources
Simplicity and cost effectiveness of ongoing operations	Staff look after day-to-day operations Ability to limit involvement to preferred level	Directors or trustees must perform, hire staff, or contract for these services which may be at a higher cost
Flexibility to change focus or involvement over time	Choice in grantmaking involvement from year to year - donors can designate their fund to support particular charities, advise CF on grants from time to time, or allow the CF to direct your grants based on community need	Donor or family members are responsible for all activities of Foundation Responsibility for operating Foundation must be assumed by someone, even if family members lose interest in direct involvement over time
Degree of recognition	Wide range of choice of recognition or anonymity is available	Work of private foundation is fairly public
'Best Practices'	Staff are able to incorporate best practices throughout the operations	Principals must invest time and energy in keeping up to date with change
Passing mantle to next generation	Build on knowledge and experience gained from working with other like minded individuals	Principals are responsible for engaging next generation