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World-wide attention has been recently placed on significant personal donations such as Warren Buffett’s multi-billion dollar gift to Bill Gates’ foundation. However, Canadians do not need the riches of a Warren Buffett to influence social change. Thanks to recent changes to tax laws and the growing availability of strategic giving options, such as Donor Advised Funds, Canadians have a tax efficient way to make a meaningful difference in their communities.

Why:      

In May 2006, the Federal Government eliminated the capital gains tax on publicly-traded stocks donated to charities and public foundations, making giving more attractive than ever before.

Donor fatigue continues and the days of just writing a cheque and forgetting about it are gone. Canadians are overwhelmed by $50 and $100 donation requests. Many would rather give a significant amount and be more involved with the issues they support. Donors want to know that their money is being used in an effective way,and for the cause that they had intended.

How:      

A Donor Advised Fund (DAF) is a charitable giving vehicle set up under the tax umbrella of a public charity. These funds offer an opportunity to create an easy-to-establish, low cost, flexible vehicle for charitable giving as an alternative to direct giving or a private foundation. These funds offer all the benefits of running your own private foundation, without the administrative hassles, and they can be created with as little as $10,000. With a donor advised fund, the gift keeps on giving because it is invested and the earnings are distributed tothe charities recommended by the donor, every year in perpetuity.

Who:      

In 2003, BMO Financial Group and Community Foundations of Canada created Supporting Your Community – the only Donor Advised Fund that connects Canadians directly to charitable experts working in their community. By working with their community foundation, donors get access to the inside track on local issues and organizations so they can make the most of their charitable gift, year after year.

Marvi Ricker, Vice President and Managing Director, Philanthropic Services, BMO Harris Private Banking is available to discuss the impact of the tax changes and the growing trend in Donor Advised Funds (DAFs), including the Supporting Your Community program.

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