When you establish a charitable fund or utilize other philanthropic opportunities at the JCFC, you can enjoy significant tax benefits and know that we will manage the day-to-day administration of your funds with the utmost care.

With the establishment of your fund

  • You are creating an enduring legacy that will positively impact the community now and for generations to come.
  • You, your family and your friends can make additional contributions at any time, helping your fund to grow. For a minimum donation of $10, you benefit from a tax receipt and your gift can be acknowledged with a beautiful tribute card.
  • You will receive the maximum tax advantages allowed by law for income, gift and estate tax purposes.
  • Your funds will be professionally managed and pooled for diversified investment. Performance is monitored monthly by our Investment Committee and reviewed regularly by our Board of Directors.
  • You can use the Foundation to support multiple charities — locally or nationally. You supply the passion and ideas, while we provide the expertise and infrastructure.
  • We handle all your paperwork, processing and monitoring of grants.
  • As a trusted public charity, the JCFC will assure the continued use of your funds in the community interest and with your charitable intent in mind.

Whether you wish to make an immediate philanthropic impact, hope to leave a legacy, or have complicated tax situations, the JCFC has the resources and tools that can help fulfill your financial and charitable goals.

Comparing Three Approaches to Giving

Your Fund at the JCFC

(your fund is part of a not-for-profit community institution)

Commercial Charitable Gift Fund

(your fund is established within a for profit financial institution)

Private Family Fund

(your fund as trust or not-for-profit corporation)

Administrative Requirements

Set Up Costs None None Legal and accounting expenses. Filing fees.
Minimum contribution required to start a fund Accessible to individuals who want to build their fund over time. Funds can be established with a contribution of $1000. Varies from $10,000 to $250,000. No mandated minimum but expert opinion varies from capital of $1-milllion to $5-million.
Restrictions on additional contributions Ten dollar minimum donation. Through the tribute card program you can acknowledge family events with a donation to your fund. Minimum contributions of $1,000 or more, can be made at any time There are restrictions on donation of
private company shares. Tax savings
are deferred and may be
denied. Donation receipt can only be
issued at time of disposition which
must be within five years.
Reporting and Administration JCFC handles all of the daily administration. We file annual tax returns, process grants, and issue cheques and receipts. A fund can be established in a short time, often one business day. The commercial foundation manages all accounting and tax filings.A fund can be established in a short time, often one business day. Accountant, lawyer or staff person handles day-to day administration and must file statements annually with CRA. Set up of foundation can take 6 to 12 months.

Ongoing Costs

As a not-for-profit organization, the JCFC operates on a cost recovery basis.Pooled administration provides economies of scale that help to minimize expenses.The large size of our pooled asset base allows us to obtain competitive fees from our investment managers. Fees vary from 1.5% to more than 2.5%. Depending upon the financial institution and fund type, additional fees may be charged for investment fees, operating expenses, brokerage fees, grant distribution, and reporting. Liability insurance, and direct administrative costs. Additional fees for professional services may also be incurred.

Donor Involvement

Donor can recommend grants to qualified non – profit groups. Grants are approved by the JCFC Board of Directors. Donor can support an entire range of charities.Donor can name fund for family or other loved ones. Donor can involve family in process and appoint successors to advise on fund after death. Opportunity for involvement in high-impact community leadership initiatives.Donor may choose to remain anonymous. Donor can recommend grants to qualified non-profit groups. Grants are approved by trustees of the gift fund. Usually some limits on number of grants per gift.Donor can name fund for family or other loved ones. Treatment of fund after death varies.Donor may choose to remain anonymous. Donor appoints board, which controls investments and grant-making.Donor can support an entire range of charities.Donor can name foundation for family or other loved one and involve family in process.Foundation can adopt innovative approach to grant-making, based on foundation’s chosen mandate.Tax return is public record

Distribution Requirements

In most cases, donors can make grant recommendations at their discretion supporting a wide range of charities Often there are limits on the number of grants per year. There is a minimum 3.5% annual distribution requirement, with a potential excise tax for failure to meet this requirement or for engaging in certain prohibited transactions. There is a 2% excise tax on investment income (1% under certain circumstances). The charitable income tax deduction limitations are more restrictive due to the nonpublic charitable status of a private foundation. Self-dealing restrictions.

Investment Management

Community foundation board sets investment policy. Investment committee made up of volunteer investment and finance professionals who recommend the hiring of investment managers and monitor their performance. Participating financial institution sets investment policy. The investment arm of the financial institution manages the funds. Trustees and directors set the investment policy, managing the funds directly. They may hire professional investment managers and monitor their performance.

Governance

Arm’s length Board of Directors and committees comprised of cross section of local community leaders. Board membership varies but generally includes members of financial institutions senior staff and board of directors. Board comprised of trustees/directors initially chosen by the donor. More than half of Board may be persons in a non-arm’s length relationship with donor.