Here are some of the scenarios that leads your client towards thinking about legacy giving:
Establishing a private foundation
Your client is thinking about establishing a private foundation, but is looking for a simpler, more cost-efficient alternative. The community foundation can help you and your client analyze the pros and cons of creating a Donor Advised Fund or a private foundation.
Sale or disposition of highly appreciated stock
Your client has appreciated stock and wants to use a portion of the gains for charitable giving, but the identified charities are too small to accept direct stock gifts. Suggest establishing a fund at a community foundation with a gift of appreciated stock. Your client receives a tax deduction on the full market value, while avoiding the capital gains tax that would otherwise arise from sale of the stock.
Sale of a business
Your client owns highly appreciated stock in a company that is about to be acquired. The community foundation can work with you to suggest several ways to structure a charitable gift (including the use of planned giving techniques) to help your client reduce capital gains tax and maximize impact to the community.
Strategic giving
Your client is passionate about helping meet a specific community need and wants to make a meaningful gift. You and your client can work with our grantmaking experts to explore community needs and programs and then direct gift dollars to make the greatest impact.
Substantial RRIF assets
Your client has substantial assets in retirement accounts and wants to leave their estate to family and some favourite causes. The community foundation can help you and your client evaluate the most beneficial asset distribution to minimize taxes, giving more to their heirs and preserving charitable intent.
Selling of real estate
Your client is interested in “downsizing” and simplifying life by selling some property. These transactions have tax ramifications that may be reduced with charitable giving.
Marking a milestone
Whether your client is celebrating a corporate anniversary, a personal milestone (such as a significant birthday, graduation or birth) or marking the passing of a loved one, naming a fund at your community foundation can be a fitting way to remember a particular person or time in your life.
As an allied professional, you know the ins-and-outs of each of these scenarios. Now let NCF help you create a philanthropic solution that will increase your client's current income, increase their heirs' inheritance, create a legacy for the community, and teach their children about philanthropy.
Need a hand navigating the conversation? We are happy to meet with you and your client to assist with this process. The meeting does not direct your client to NCF but helps them clarify their short-term and estate charitable giving dreams.
We also offer free professional development sessions to local firms with up-to-date material on current charitable issues. This material is useful in your estate planning work with your clients. To find out more, contact our Executive Director.
External Investment Manager Program
Niagara Community Foundation is always looking for new ways to help donors in achieving their philanthropic goals and to work with professionals in the financial, estate and investment world in mutually beneficial relationships.
As a result, NCF created the External Investment Managers (EIM) Program. The EIM allows assets gifted to a newly created fund to be invested outside NCF’s Consolidated Investment Fund in a portfolio managed by the donor’s recommended investment firm. When coupled with a donor advised fund, the Program provides donors with an attractive alternative to a private foundation.
A simple fund agreement is used to create the donor’s fund at Niagara Community Foundation. The donor has several types of funds to choose from; however, the most common fund type selected by today’s donors is a donor-advised fund.
The minimum contribution to the fund is $1,000,000. Gifts under this amount will be considered on a case-by-case basis.
To qualify for a donation receipt under the Income Tax Act (Canada), the donor must transfer ownership and legal control of their portfolio assets to Niagara Community Foundation. The definition of a “gift” in the Act must be met to protect both the donor and Niagara Community Foundation. This means that the investment firm’s contractual relationship shifts from the client/donor to Niagara Community Foundation. However, the client/donor may remain involved as an advisor to Niagara Community Foundation and is entitled to receive copies of annual fund statements from the Niagara Community Foundation.
A firm’s book of business will not shrink when a client decides to make a substantial charitable gift.
A firm may continue to manage the assets in the fund even after the donor’s death if the firm’s investment performance continues to meet Niagara Community Foundation’s standards. In other words, the firm could manage the assets indefinitely.
A firm will enhance its relationships with philanthropic clients and their families because it will be involved directly in decisions affecting the success of its philanthropy on an ongoing basis.
A firm will be assured of a key position within a client’s estate and financial advisor network leading to increased opportunities for client referrals.
Clients can continue an existing relationship with a trusted portfolio manager.
Clients can have as little or as much involvement with the grant-making from their funds as they choose, and their level of involvement can change over time. The program allows clients maximum flexibility and adaptability to pursue their philanthropic goals.
Clients have access to grant-making expertise and philanthropic services that are unrivalled in Niagara.
Clients can consolidate all of their charitable giving through a single fund and achieve as much public recognition or privacy as they choose.
Clients can take advantage of the enhanced tax credit for donations of publicly listed securities and use more complex gift structures tailored to their business and family situations.
Click here to download the External Investment Managers Program one-pager for more information, or contact Bryan Rose, Executive Director, Niagara Community Foundation.
