Professional Advisors Section

Frequently Asked Questions (FAQ)

The following questions reflect often-asked questions by donors, prospective donors, and professional advisors alike. Please use our contact page to submit any other questions you may have.

What is Saskatoon Community Foundation?

Saskatoon Community Foundation is one of more than 150 community foundations throughout Canada. Like other community foundations, Saskatoon Community Foundation is a charity that receives charitable gifts from individuals and business organizations and invests them into income-earning funds. The earnings from these funds annually support a broad range of registered charities to improve the quality of life for our families, friends, and neighbours.

Since being founded in 1970, we have been connecting caring people with charitable organizations to make Saskatoon the best community in which to live, whether for today or for the future. We enable donors to leave legacies for the community, often in the areas of their greatest interests, such as the arts, education, environment, health, social services, etc. or for their most favoured charities.

Where is Saskatoon Community Foundation located?

Our office is located at:
Suite #101 308 Fourth Avenue North
Saskatoon SK S7K 2L7
Our phone number is (306) 665-1766 and our fax is (306) 665-1777.

What is The Foundation’s charitable Business Number?

The number assigned by Canada Revenue Agency to Saskatoon Community Foundation is 11914 0911 RR0001.

How is Saskatoon Community Foundation different than other charities?

Most other charities do not build endowment or trust funds. They use 80% or more of the donation on current services and programs.

The purpose of Saskatoon Community Foundation is to provide a vehicle for gifts that will contribute, in a significant and sustaining way, to the overall quality of life in Saskatoon and area.

Donations are invested and only the earnings are used to support the charitable sector. In this way a donation made today goes on to help others forever.

Saskatoon Community Foundation was founded with the intention of sustaining the local charitable sector. We do that by building endowment funds, which are similar to trust funds. The income from the endowment funds is distributed to over one hundred local charities, working in a many varied areas, including: the arts, education, environment, health, science and research, social services, and others. Income, in the form of grants, is disbursed year after year, while the initial donation is preserved. In this way, donations are never spent, and the income helps charities in perpetuity.

How can donations be made?

Donations can be made today or planned for the future. Current gifts can be made in a variety of forms, including:

  • cash, cheque, automatic withdrawal;
  • VISA or MasterCard;
  • transfer of ownership of shares, bonds, mutual funds

Future gifts are often in the form of:

  • bequests, either specific or residual amounts
  • insurance policies, either revocable or irrevocable
  • residual amounts of RRSPs, RIFs, LIRAs, LIFs, annuities, etc.
  • residual interest trusts of property, often of cottages and homes
  • charitable remainder trusts of income-generating assets
  • other acceptable property

Gifts can also honour individuals or events, such as memorial, testimonial or celebration gifts. Of course, gifts receive a charitable tax receipt.

Please check the Gift Planning Matrix for the vehicle that works best for you.

Do you accept memorial donations?

Yes, we do. We also accept donations of celebration, such as birthdays and anniversaries.

When we receive such donations, we advise the family or the individual being honoured of your donation. The amount of the donation is not disclosed.

Making a Difference

Saskatoon Community Foundation provides an opportunity for you to leave a permanent legacy to the community of Saskatoon. Your name lives on, and your family has permanent recognition in the Annual Report of The Foundation. Your gift will continue, in perpetuity, to meet the changing needs of the Saskatoon community.

Making a Bequest

Thank you for leaving a legacy. A bequest is a wonderful way to make a statement about who you are and what you believe.

There are many options available if making a gift in a Will. This can be done by adding a clause by Codicil to an already existing will, or by preparing a revised Will. Saskatoon Community Foundation recommends that donors making bequests should have legal counsel prepare their Wills and discuss their plans with family. When possible, The Foundation staff like to meet with donors to determine if the donor has specific objectives they would like to achieve with their legacy.

Bequests have many rewards:

  • reduction of income tax savings owing in the year of death and the year immediately preceding
  • recognition as part of Saskatoon Community Foundation's planned giving program after death
  • if The Foundation is notified in advance, the donor will become part of the ongoing recognition for those with planned gifts

The following suggested clauses may be used when preparing your Will:

(1) I give the sum of $_______________ to Saskatoon Community Foundation (BN 11914 0911 RR0001) to be held in perpetuity.

(2) I give the residue of my estate to Saskatoon Community Foundation (BN 11914 0911 RR0001) to be held in perpetuity.

(3) In the event that any of the named beneficiaries to my will predecease me, the gift to them shall lapse and shall pass to Saskatoon Community Foundation (BN 11914 0911 RR0001), to be held in perpetuity.

(4) After the death of _______________________________(life tenant) I give, devise and bequeath the residue of my estate to Saskatoon Community Foundation (BN 11914 0911 RR0001), to be held in perpetuity.

Giving Life Insurance Policies

A gift of a life insurance policy provides donors with the opportunity to establish a significant future legacy through a modest annual donation, a lump sum payment, or no actual outlay of cash for a fully or partially paid-up policy. Assigned life insurance policies are not part of the donor’s estate, so no probate fees are assessed.

This type of gift does not diminish your estate yet allows you to make a substantial gift with ongoing tax benefits.

There are two main options for life insurance policies:

  • Assign irrevocable ownership of an existing or new insurance policy to Saskatoon Community Foundation
    • you donate your policy to Saskatoon Community Foundation - either to the unrestricted fund or restricted fund through a fund agreement
    • annual premiums are a charitable contribution thereby reducing your current tax liability
  • Name Saskatoon Community Foundation as beneficiary of an insurance policy
    • at the time of your passing, your estate will receive a charitable tax receipt for the amount received

Life insurance policies offer several advantages in estate planning:

  • donor able to establish a significant future legacy through a modest annual donation
  • depending on type of policy, a tax receipt will be issued for annual premiums or for face value of the policy
  • gift does not form part of the estate and is not subject to probate
  • immediate recognition as part of Saskatoon Community Foundation's planned gift recognition program

Typical EXAMPLES of donors who choose Life Insurance as a gift option:

  • Many people acquire insurance policies for specific reasons, such as mortgage insurance or to provide a ‘safety-net’ until a business or career is established. They eventually find they no longer have a need for the policy. These policies can become charitable gifts either by naming the community foundation as a beneficiary, or transferring ownership of the policy to the community foundation. If the donor wishes to obtain tax relief, the community foundation must be named as owner and beneficiary.
  • Many donors lack the financial ability to make a ‘substantial’ gift. The use of life insurance can assist a donor to make a LARGE gift. The donor can insure himself or another person.
  • Donors who provide a gift to the community foundation which affects the value of their estate can take out a life insurance policy to “replace” to their heirs the assets represented by the gift - truly a win-win situation. The donor receives immediate recognition for their gift and an opportunity to see it work, the heirs benefit from the life insurance policy and the community foundation receives a gift that can be immediately used for charitable activities.
Why Give to Saskatoon Community Foundation?

1. Simplicity:
A gift to Saskatoon Community Foundation can simplify your charitable giving. One contribution to The Foundation can address a wide range of needs or interests or can benefit any one or number and charitable organizations in our community. Currently, an unrestricted gift will assist over 100 local charities continue their good work each and every year.

2. Effectiveness:
The Foundation ensures the best use of your gifts through the professional grant research of the staff and proven judgment of the grants committees with the rigorous oversight of the Board of Directors.

3. Giving Options:
You can realize nearly any charitable intent by choosing from among the variety of fund types offered by The Foundation. Almost any asset of value can be considered, and there is a minimum of paperwork to create your fund.

4. Flexibility:
The Foundation is aware of changing conditions in the Saskatoon area. The Foundation will honor your wishes regarding the charitable beneficiary of field of interest you may designate. Should the original beneficiary or purpose of your gift become dysfunctional, unnecessary, incapable of fulfillment, or inconsistent with the needs of the area, the Board of Directors can then redirect the fund to other related concerns where your interests can be carried out.

5. Permanence and Continuity:
Your gift creates an endowment fund that will continue to benefit the community well into the future. Additional gifts, including a bequest in your will, can be added to your initial gift at any time.

6. Recognition:
All grants from your fund are identified to the recipient charities by the name that you have given your fund. You can, of course, request anonymity with the assurance that your wishes will be respected.

7. Investment Expertise:
You are saved the time and expense of investment work and are assured professional management of the fund.

8. Tax Benefits:
Saskatoon Community Foundation is a registered charity under the Income Tax Act. Thus, gifts made at any time can result in important tax advantages.

9. Cost Effective:
Saskatoon Community Foundation provides an attractive alternative to those considering establishment of a private foundation. You can obtain similar benefits while limiting your work and cost.

Can I give to specific charities?

Donations can either be restricted or unrestricted in their influence.

Unrestricted gifts provide the Board of Directors with complete discretion to respond to the changing needs of the Saskatoon community. In this way a large number of local charities benefit each year from donor generosity through The Foundation’s professional granting program. Donations totaling $5,000 or more can be named in an Unrestricted Fund Agreement, with the income assisting over 100 local charities annually.

Restricted donations allow donors of gifts of $10,000 or more to direct the income from their donations to either a specific charitable organization or organizations on an annual basis through a Designated Fund Agreement or to a general type of charitable organization through a Field of Interest Fund.

Is there any way that I can be actively involved in deciding on the charities to benefit from my donation?

Donors can opt to have the income from their donations directed to a specific charity or charities each and every year through a Designated Fund Agreement or to leave the decisions to The Foundation’s Board of Directors and volunteers on various grants committees through either an Unrestricted Fund Agreement or a Field of Interest Agreement.

However, for those who wish a “hands-on” involvement in decision-making, the Donor Advised Fund Agreement is recommended. The Donor Advised Fund allows donors who achieved a level of $50,000 or more in contributions to decide on the recipients of their charity each and every year. Early in each calendar year, the donor is advised of the amount of money earned by his or her fund and the amount that can be awarded or granted to charitable organizations. Donors are asked to advise The Foundation by May 15 of each year with their choices. The donor agreement can transfer the annual decision-making duties to others (such as children, grandchildren, or friends) at a time when the original donor/s are no longer able or willing to continue in this capacity.

There are other ways you can be involved, too. The Foundation is often in need of volunteers. Volunteers work on a variety of activities, everything from administrative support (such as stuffing envelopes) to special event planning to committee membership. Please call 665-1756 if you are interested.

I have decided to make a donation.

How do I proceed? First of all, thank you for entrusting The Foundation with your donation. We appreciate your kindness and concern for our community.

If you are making a donation by cheque, please mail your cheque or drop it off at Suite 101, 308 Fourth Avenue North, Saskatoon SK S7K 2L7. The cheque should be made payable to “Saskatoon Community Foundation.”

If you wish to donate using a credit card or by setting up automatic withdrawals, please call (306) 665-1766.

If your gift entitles you to establish a Named Fund, the Donor Services Manager will be in contact with you to discuss options.

For your first donation, we ask that you complete a Donor Direction Form. Canada Revenue Agency insists that donors to public foundations understand that their contributions are endowed and only the income used annually to support charities. Please complete the form and either mail it to Saskatoon Community Foundation or fax it to (306) 665-1777. Thank you!

Can I remain anonymous?

Yes, by all means. Please advise us, preferably in writing, if you wish not to have your name included in our Annual Report donor listing. We would be pleased to comply with your wishes.

Can I make donations that are not endowed?

Although our main purpose is to build endowment funds that sustain the charitable sector, for a small service fee, we can flow your donations through to other charities.

How does The Foundation deal with low investment returns?

Public foundations, including community foundations like us, must disperse a minimum amount of 3.5% of assets to the charitable sector each year. Currently The Foundation’s internal policy is to distribute 4.5% of the asset base.

Saskatoon Community Foundation’s volunteer Investment Committee, together with other charitable groups and knowledgeable experts, researches options and sets an investment policy for the year. Currently the policy mix is as follows:

  • Equities – between 25% and 55% of total assets
  • Fixed Income – between 45% and 75% of total assets
  • Short-term Investments and Cash – between 0 and 25% of the total portfolio.

The policy is reviewed on an annual basis. As many of us have experienced over the past few year, investment returns are lower than hoped. Canada Revenue Agency allows foundations to meet the minimum disbursement quota on a 5-year average. In some years, Saskatoon Community Foundation disbursed more than 4.5% of the assets, so in lean years, we were able to reduce our disbursement amount. We feel strongly that we must support our local charities and will try to put as many grants and awards into the community as possible.

Can I receive a copy of the annual report?

Yes. Please drop into our office at Suite 101, 308 Fourth Avenue North in Saskatoon (on 4th Avenue between 25th and 24th Street). You can also call us at (306) 665-1766 or use our contact form and we will send you one.

Collaboration with a Professional Advisor or Consultant

Professional advisors and consultants are invaluable in improving the charitable health of the community. In their confidential and trusted roles, advisors can assist clients in achieving their philanthropic goals. Accountants, lawyers, and some estate planners charge for their knowledge and service. Others, such as insurance professionals, receive commissions on the sale of products. Recently, Saskatoon Community Foundation initiated the Investment Advisors Program so that advisors may continue to manage portfolios that have been given to charity. Donors are encouraged to work with professional advisors to get the best possible advice for their particular situations. The Foundation’s staff members are knowledgeable and may offer suggestions for consideration; however, often the staff does not know the intricacies of the donor’s state of affairs. It is best to discuss charitable giving plans with trusted professional advisors before finalizing the gift.

It is also advised that donors discuss their plans with family members. These discussions are an opportunity to advise members that they are loved and will be taken care of, but also an occasion to inform family members about outside charitable interests and concerns.