PROFESSIONAL ADVISORS

The Saskatoon Community Foundation is a registered charity, supporting the needs of our community. We offer an innovative way to put charitable dollars to work for the benefit of Saskatoon. Our philosophy is to build funds for the long-term, on-going support of charitable organizations. The Foundation is donor-focused and cause neutral. We do not compete with other charities, but strive to support the community as a whole. Income earned from our endowment is granted to local charities to improve the quality of life for our friends and neighbours.

Community Foundations connect donors to the issues and organizations that matter most to them. SCF is uniquely positioned to help you and your clients.

Partnering with SCF to Invest in Community

  1. WHY SHOULD YOU CARE ABOUT THE WORK THAT SCF DOES?

    93%* of Canadians believe charities are important, and 88%* believe charities create higher quality of life for their recipients. Your clients care, and with 800 charities in Saskatoon alone, it can be difficult to know where to begin.

    That’s where we come in. The Saskatoon Community Foundation is donor-focused and an ally to the financial sector. Giving to charities is what we do – it is our business, and we are here to make it easy for your clients to contribute back to the community.

    With 84%* of Canadians contributing to charity on an annual basis and significant tax advantages associated with donations, charitable giving is an important part of your clients’ financial plan. SCF is cause neutral, which means we ensure grants are made to the causes important to our donors. Working with you, we will use our charitable sector expertise to ensure that your clients’ financial and charitable goals are fulfilled.

    * Percentages as reported in the 2012 Stats Canada Report

  2. HOW SCF CAN HELP

    1. We work with you. You stay in control of your client relationships. We provide a full range of services for your client, and can set it up so that you, the financial planner, are able to retain that book of business. For non-pooled funds you can continue to manage the money, and you remain the investment broker.

    2. We are experts in charitable giving. Whether it’s putting together a complicated estate plan or considering the alternatives to a private foundation, we can tailor giving plans to meet your clients’ needs.

    3. We are knowledgeable about our community and we can help your clients be as effective as possible in their giving. We can assist your client in donating securities to a wide variety of charities that may not have a brokerage firm.

    4. We offer the advantages of efficient operations and effective fund management. As a registered charitable foundation, we are a cost-effective and efficient option for industry professionals and donors to obtain expert advice of the charitable sector and philanthropic options.

  3. ADVANTAGES OF USING SCF VS. STARTING A PRIVATE FOUNDATION

    ACCESS TO EXPERTISE IN ALL AREAS OF THE CHARITABLE SECTOR: The SCF staff has decades of experience in working with charities and charitable organizations. This extensive knowledge can greatly assist donors with directing their charitable donations and maximize their investment in the community.

    ACTIVE PARTICIPATION: Through Donor-Advised and larger funds, a donor can recommend grant disbursements to the fields of interest or specific charities of his or her choice.

    SIGNIFICANT COST SAVINGS: Substantial legal, accounting, and administration costs can arise from establishing a private foundation. SCF is a low-cost, effective way to manage charitable giving.

    BROADER RECOGNITION OR GREATER ANONYMITY: For those who wish greater recognition, donors can be acknowledged by both the SCF and the recipient charity for their contribution. On the other hand, for those who prefer anonymity, the SCF can provide accountability and evaluation reports while maintaining the donors’ anonymity from the public and other charities.

    ABILITY TO CONTINUE GIVING THROUGH TO THE NEXT GENERATION: Private foundations often struggle with how to engage the next generation in philanthropy in a meaningful way. The SCF offers a unique role in bridging generations and providing the guidance to ensure that the philanthropic nature of the original founders carries on with future generations.

We offer guidance without obligation. We provide a customized experience that will define your clients’ philanthropic intent and connect them to their charities of choice, whether through an endowed fund at the Saskatoon Community Foundation, or another philanthropic model.

Choosing the Asset

CASH OR PROPERTY

A gift of cash or property gives your client the satisfaction of seeing their gift at work today and provides immediate tax benefits.

APPRECIATED SECURITIES

Gifting stock or securities through SCF allows the donor to receive a tax receipt for the full amount, essentially eliminating the capital gains taxes associated with the stock. Donors can benefit from this added incentive to reduce the real cost of their charitable giving or increase the amount of their gifts without increasing the cost.

GIFTS OF LIFE INSURANCE

Gifting life insurance is a simple way to make a significant contribution to your community and establish your clients’ legacy of giving, while realizing tax benefits that they can enjoy during their lifetime.

BEQUESTS OR GIFTS BY WILL

A charitable bequest added to a will is an easy way to benefit the community and create a personal legacy for your client. The charitable gift is eligible for a tax credit for estate tax purposes.

CHARITABLE REMAINDER TRUSTS

Your client retains use of the property during their lifetime or that of a specified heir and afterwards.

Donation Options

UNRESTRICTED FUNDS: This type of fund is not tied to any specific charity or interest, allowing the Saskatoon Community Foundation the ability to address pressing, changing, and immediate needs of the community.

DESIGNATED FUNDS ($10,000): Established by the donor to support one or more charitable organizations or fields of interest in perpetuity.

STUDENT AWARDS ($25,000): Established to help individuals receive education or training they might not otherwise be able to access. Award criteria can be determined by the donor.

DONOR ADVISED FUNDS ($50,000): This fund allows the donor to be actively involved each year in recommending charities.

FOUNDATION FUND ($500,000): This fund allows donors to accept applications from potential recipient charities using our online software.

FOR THE IMMEDIATE FUTURE: The Saskatoon Community Foundation recognizes there is an immediate and ongoing need in the community for donations. We offer our Flow Through Funds and Social Capital Accounts. These funds allow donations to flow through the Community Foundation to your clients’ charity (or charities) of choice on an adhoc or annual basis.

Professional Advisors FAQ

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.

Does it cost money to use the SCF to assist on the philanthropy side of my client’s wishes?

On endowed funds, the SCF has an administration fee that is applied to the first year’s annual investment returns. On gifts that will flow immediately through to another charity, say in the case of transferred securities, there is a small percentage retained by SCF. For capital funds that sit with SCF for 6 months or longer, we waive the administration fees but retain the investment income.

Can my client use your brokerage firm to get a securities donation to their charity of choice?

Absolutely! SCF uses a simple transfer form from our broker Raymond James that your office can send over. We also need some SCF paper work signed to ensure we are sending the donation to appropriate charities, but you can handle all those details if you wish, directly with your client. We do not need to meet in person with them. If the funds sit with us for 6 months or more, there is no fee for this service.

How does it work if my client wants me to continue managing their funds?

Once the SCF paper work is complete, and the donation is made by the donor/client, the Saskatoon Community Foundation sets up an account with your firm. In perpetuity! SCF has a non-pooled policy that must be met and annually we will request in writing the grant amount and our fee amount to be sent to us. Beyond that, you, the advisor, are still very much in control of that money for both your client and SCF.

Can SCF be my client's executor?

No. The Saskatoon Community Foundation is not licenced to be administer a will. SCF can, however, be the main hub for all charitable giving both in the estate or will. One lump sum amount to the SCF with directions from the donor on file can simplify the process for the executor creating one gift and one gift receipt, while still allowing many charities to benefit.

Can my client transfer their private foundation to the SCF?

Yes! SCF can absorb the assets of a private foundation and keep many of the aspects the donor may have liked, such as the grant decision making. There are many details to consider and the experts at the Saskatoon Community Foundation are always interested in discussing these opportunities and if they are a fit for your client. We are also available to discuss the setup of a private foundation and help guide you through the process.

Will the SCF take over a life insurance policy that is about to lapse?

Possibly. SCF must consider many factors in deciding whether it will be beneficial to do so. However, SCF has, in some cases, taken over the payments of a policy that would have otherwise lapsed. We are always interested in discussing the details of your client’s particular case to see if there is a mutually beneficial outcome.

Presentations or Speaking on Philanthropy:

The staff at the Saskatoon Community Foundation has years of experience in the charitable sector and works very closely with accountants, lawyers and financial planners to achieve the goals of our donors and your clients. We are available to do presentations to your firm or your clients – phone us today to book yours!

FEE SCHEDULE

Updated Annually (2015)

The Saskatoon Community Foundation fees and granting policies are subject to ongoing review and change by the Foundation’s Board of Directors.

Permanent Endowments including Student Awards and Foundation Funds: 1.5% of the investment earnings annually

Flow-Through Funds: 1.5% of gift amount (capital) and 100% of interest income earned on fund balances.

Social Capital Accounts: 100% of interest income earned on fund balances.

Corporate Granting Program (Flow Through): $5,000 min admin fee or 1.5% of gift amount (capital), 100% of interest income earned on fund balances and a minimum of $2,500 for advertising of the program.

Agency Funds: .5% of the investment earnings annually

Managed Funds: .5% of the investment earnings annually

Third Party Fundraisers and Receipting Agreements: 1.0% of gift amount (capital) flowed through SCF and 100% of interest income earned on fund balances. As well as marketing as required by the MOU.

FUND MINIMUMS

Flow Through Funds: $1000

Named Endowed Funds: $5,000

Social Capital Accounts: $5000 and 6 months invested

Designated/Field of Interest Endowed Funds: $10,000

Agency Fund: $10,000

Managed Fund: $10,000

Student Award Endowed Fund: $25,000

Corporate Granting Program (Flow Through): $50,000

Donor Advised: $50,000

Donor Foundation (Fund): $500,000