Charitable Organizations

Frequently Asked Questions

• What is an endowment?

  An endowment is a gift that is held in perpetuity with the capital value being preserved over the long-term with only a portion of the income used to provide a steady stream of annual income back to a charitable organization. The Victoria Foundation currently offers permanent endowment funds to charitable organizations whereby the capital is held in perpetuity. The Foundation provides fund administration, fund investment oversight and granting services to these charitable organizations. All funds are pooled together with our Common Trust Fund and those funds are professionally managed. It is the foundational strength of the Common Trust Fund that has allowed the Foundation to generate annual returns that have been granted to charitable organizations for almost 90 years.

• What is the minimum capital amount required to establish an endowment?

  $10,000 

• Is the endowment capital investment accessible?

  No. The Victoria Foundation currently offers permanent funds only, which means the capital is restricted. The capital investment is held in perpetuity to provide a stable source of income, ensuring the long-term financial health of the organization.

• What are the annualized investment returns for the endowment?

  An annualized investment return is the measure of a fund’s performance. It refers to the average rate of return an endowment fund generates over a year. Following are the annualized investment returns for the past 1-, 3-, 5- and 10-year period, using December 31st, 2024 as a starting point.

  • 1 year: 15.76% (compared to the benchmark of 15.00%)
  • 3 years: 6.12% (compared to the benchmark of 5.35%)
  • 5 years: 8.14% (compared to the benchmark of 7.53%)
  • 10 years: 7.96% (compared to the benchmark of 7.45%)
• What is the breakdown of the endowment portfolio?

  The Victoria Foundation’s investment objectives are to maximize long-term returns while maintaining a measure of protection against short- and medium-term volatility, to protecting the real (i.e. net of inflation) value of endowments over the long term, to provide stable and predictable annual distributions to charitable organizations, and to use our investments as a tool to create social change. In order to achieve these objectives, the endowment portfolio is diversified across both asset classes (e.g. stocks, bonds, mortgages, infrastructure, and real estate) and geographies (Canada, US and International).

• Is the endowment portfolio investing for impact?

  Yes! The Victoria Foundation believes we can use our investments as a tool to create social change and meet the growing demands of our community. We have a long-standing history of intentional investment practices, and we believe we can accelerate our impact by exploring how we use those investments to generate even greater social and financial returns within our global, national, and local communities.

• How is the endowment portfolio managed?

  Our Board of Directors and Investment Committee, with advice from our Director of Investments and professional investment partners, make decisions about our investment portfolio and how to allocate the funds based on the investment beliefs policy. Decisions on the inclusion of investments and investment managers are made within the framework of the?Investment Policy, and with a level of risk that is managed by diversifying the portfolio’s holdings amongst asset classes, industry sectors, geographic regions, and investment managers with non-correlated management styles. Investments are monitored on an ongoing basis, allocations are regularly rebalanced, and the Committee reviews the Investment Policy annually to ensure it continues to reflect the Foundation’s requirements in the context of the endowment objectives.

• What fees are charged to the endowment fund?

  For funds managed on behalf of charitable organizations, we charge a fee of 0.75% annually, calculated and paid monthly on the market value of the fund. Additionally, the investment management fee is approximately 0.50%. Investment management fees are included in our calculation of annualized returns which is defined as the sum of Interest, Dividends, Realized Capital Gains (Losses) and Unrealized Capital Gains (Losses) LESS investment management fees. Pursuant to the Victoria Foundation Act, the investment management fee includes our custodial fee.

• How much is distributed each year to the charitable organization?

  Our distribution policy rate is set annually by our Board of Directors and is 5.00% for 2025. Distributions are made on an annual basis to the charitable organization.

  Please note, the following calculation uses simple math to illustrate how an endowment fund works. Actual results will vary.

  Endowment Fund Capital	$10,000
  Plus annual net returns @ 7.50%	$750
  	$10,750
  Minus Victoria Foundation fund administration fee @0.75%	$75
  Less the grant to hosted org. @ 5.00%	$500
  Equals endowment fund capital	$10,175

• Can an organization outside the City of Victoria still benefit from an endowment fund held with the Victoria foundation?

  Yes! Pursuant to the Victoria Foundation Act, we are not limited to the City of Victoria in our fund management and granting services.

• Can a fundholder still apply for a Victoria Foundation community grant?

  Yes! Please check our grant webpages for application guidelines.

• Is there ongoing support or resources to help grow the endowment?

  Yes! The Victoria Foundation is committed to providing personalized service to charitable organizations that are fundholders and partnering with them to build their endowment funds and their long-term capacity for the benefit of the programs and people they serve.

• What type of organization can create an endowment fund?

  Any organization can create an endowment fund; however, the Victoria Foundation can only grant to organizations that are registered with the Canada Revenue Agency (CRA) or considered a qualified donee*. For a charitable organization with an endowment fund held with the Foundation, the annual distributable return is granted back to the organization for its general operations, programs and/or services.

  *A qualified donee is defined under the Federal Income Tax Act as those organizations that can issue official donation receipts for gifts they receive from individuals and corporations. For a full list of types of organizations that qualify as qualified donees, see the CRA website HERE.