Donate to an Endowment Fund

Making a gift to the Brampton and Caledon Community Foundation allows you to touch the lives of so many throughout Brampton, Caledon and its surrounding communities. It can be as simple as making a cash donation, creating an Endowment Fund or incorporating your giving through an Estate Plan.

The following are typical examples:

Designated Endowment Fund:

Situation: Mrs. Blake has given annually for a long time to the local children’s health organization. She knows they struggle continually for operating money, some years wondering if they will even be able to keep their doors open.

Solution: Mrs. Blake makes a gift to set up “The Children’s Health Fund” at the Brampton and Caledon Community Foundation, which will continue to make annual grants to her favorite organization after she passes away. And, if at some point the organization goes out of business, the Brampton and Caledon Community Foundation will continue to make annual grants from the fund to support other programs but always dealing with children’s health.

Field of Interest Endowment Fund:

Situation: Mr. Anderson loves the arts and supports a number of local arts organizations. Sometimes, though, he has difficulty deciding which organization to give to; they are all so worthy! What he really wants is to nurture the arts and encourage strengthening the various individual art organizations.

Solution: He gives some money now, and also provides for a larger bequest in his will, to set up an Arts Fund. He knows the Board of Directors for the Brampton and Caledon Community Foundation will sustain his intent by carefully deciding on annual grants it will make to various arts organizations. He also knows that others sharing his passion for the arts may also give to the Arts Fund.

Donor Advised Endowment Fund:

Situation: John and Sally Hanover give regularly to many local nonprofit organizations. They like to make their gifts at year-end, when their individual tax situation becomes clear. But sometimes they receive urgent requests during the year from an organization they have funded and dislike putting off the request for six or eight months to suit their own tax needs.

Solution: John and Sally Hanover own securities that have been in the family for a long time. The securities have appreciated, and, if they sell them, the securities will be subject to a 50% capital gains tax. John and Sally decide, instead, to give the securities at year-end to the Brampton and Caledon Community Foundation to establish the “John and Sally Hanover Family Fund.” John and Sally will receive a charitable tax receipt for the closing market value of the securities on the day of the transfer to the Foundation; and, because the gift of securities is made to the Foundation, which is a registered charity, John and Sally will pay 0% capital gains tax instead of 50%.

Once John and Sally have established their ‘donor-advised’ endowment fund, they will be able to request that the Brampton and Caledon Community Foundation Board of Directors approve available grants from the “John and Sally Hanover Family Fund” to the charitable organizations that are most meaningful to them. In this manner, they have met both their particular tax needs and their desire to help their favoured charitable organizations in a timely fashion. And, while they have taken this step to meet their current needs, they are thinking seriously about adding to the fund through their wills so that the charitable organizations they support can receive larger grants from the “John and Sally Hanover Family Fund” in the future.

Hybrid Donation:

Situation: An individual, or a company, or a service club who/that is considering an Endowment Fund, but feels their favourite charity could use an immediate donation.

Solution: Achieve both objectives by donating a part of your gift to an Endowment Fund and the other part directly to your favourite charity. The Endowment Fund acts as a ‘savings account’, into which you make donations for the long-term benefit of your favourite charity; the direct donation helps your favourite charity cover some immediate needs.

At first, people typically donate 50% of their total donation to their Endowment Fund; 50% directly to their favourite charity. In time, the growth of your Endowment Fund will create an annual grant to your favourite charity in an amount equal to, or greater than, your annual direct-donations. The best part is that you have helped your favourite charity with immediate needs and you have created an endowment fund that will provide annual grants to that charity today, tomorrow, forever!