One of the ways that the Victoria Foundation helps to make philanthropy accessible for all is the emerging fund. Unlike our other funds which require a minimum donation to start, this type of fund allows a donor to make contributions over a period of time until the minimum of $10,000 required to start a permanent fund is reached. After that time, it can be set up as a donor advised fund, and the donor can make grant recommendations to the Canadian charities of their choice, with flexibility to change charities from year to year. Alternatively, once the minimum is reached, the donor can set up a designated fund, and the fund can begin to make grants to Canadian charities.
Individuals who establish an emerging fund have done so for a variety of reasons.
- To start a fund at a lower entry point with the knowledge that the fund will eventually have grants available to support charitable causes anywhere in Canada
- To make a number of gifts to the fund over a period of time, and receive the benefit of a charitable tax receipt for each donation made
- To eliminate capital gains tax when donating publicly listed securities
- To create a lasting legacy of giving in their name or that of their family and involve the next generation in philanthropy
- To have access to information about wide-ranging issues being addressed by charities in our community
- To enjoy low, all-inclusive fund-management fees
Once an emerging fund becomes a permanent endowment, it can also be a vehicle for estate planning. A charitable gift such as a gift by will, direct designations of RRSP or RRIF or tax-free savings account can be added to the permanent fund. The fund agreement would provide for the annual grant to benefit specifically named charities.
If you would like to learn more about establishing an emerging fund, or learn more about other types of funds that can be established at the Victoria Foundation, please contact firstname.lastname@example.org