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Charities fall into two main categories: Charitable organizations and charitable foundations

Charitable organizations, broadly speaking, are charities which are actively involved in direct charitable activities. These would include churches, hospitals, universities, the Red Cross, United Way and similar organizations. Of the near 90,000 or so charities registered by Canada Revenue Agency probably more than 90% are charitable organizations.The second broad category is the charitable foundation. While a foundation can undertake direct charitable activity, in most instances its role is to build an endowment (capital) and distribute the income. The distribution normally is made to other charities, often charitable organizations. Charitable foundations are subdivided into two categories.

Private foundations are foundations where a wealthy individual or family controls the charity, i.e. where the majority of directors do not operate at arm’s length – the board is made up of family members. Public foundations are not controlled by related persons.

Stratford Financial Planning and Canada Gives

  • Canada Gives is a public foundation and a registered charity offering a complete range of administrative services designed to ‘take the pain out of being generous’ and to allow you to maximize the advantages that charitable giving provides:
  • Canada Gives represents the most cost-effective solution for foundation accounts under $2 million
  • It is based on a transparent fee structure that provides for tax filing, audits and legal services, which often represent an additional fee with other competitors
  • Canada Gives works one-on-one with the Stratford Financial Planning and you
  • Canada Gives researches sectors based on clients’ interests and provides the investor with options that are aligned with their charitable priorities
  • Personal branding allows advisors to gain credibility with donors and develop a community presence as a legacy planner
  • Open-ended investment programs are not tied to any one company or manager, thus allowing for independence of advice
  • Canada Gives’ administrative platform uniquely manages both one-time gifts and endowment gifts in coordination with financial plans
  • Insurance solutions are utilized to preserve estate assets where large donations are made prior to or after death

It is important to understand the general rules relating to charities and charitable donations to take advantage of the available opportunities.