The more you give, the more you have! That is my personal motto, one I repeat everyday which helps me be more generous.

When it comes to giving to charities, we often need that piece in the mail to remind us. The subject of charity is a highly personal one. One of the financial providers with whom I do business has developed a new program that offers many of the advantages of complex private charitable foundations to individuals. This program lets you recommend the charities you wish to support, and sets up a fund that provide an income stream to those charities for the long term. The difference between this fund and a private foundation, however, is that the administration is substantially simpler and the entry level is considerably more affordable.

The Mackenzie Charitable Giving Fund uses conservative, balanced mutual funds to achieve its goal. Each year, the Fund will distribute monies to charities that may be recommended by you. Over time, based on the performance of its investments, it can grow its capital base and therefore may make grants to your favourite charities for many years to come.  Your Fund can also provide you with a destination for your annual giving.

The Fund is based on a well-established model that is very popular in the US but only just starting to take hold in Canada. The provider, Mackenzie Investments, has been around since 1967 and is extremely well regarded in the investment industry.

If you are interested in learning more about this program, please give our office a call.  Here are a few basic key points about Charitable donation accounts.

Key Benefits:

· Creating a lasting legacy

· Ability to influence flow of donations rather than make a lump sum contribution

· Still get to receive the tax benefits of a lump sum donation

· Cost effective way to create a private foundation

· Flexibility of ensuring an income flow to multiple charities

· One account can be set up with multiple donors

Requirements :

· Minimum initial donation is $25,000

· Subsequent minimum donations of $5000

· Donor receives the full tax benefit of the gift immediately

· Donations are irrevocable

· Granting from the Foundation is determined by rules under the Income Tax Act.  The Foundation will determine each year how much granting is required usually 3% to 5%

· Donations are counted as “enduring property” and as such, 95% of the assets must be held in the foundation for not less than 10 years

· 1% Charitable Administration Fee charged (the Foundation is a non-profit charitable corporation registered as a public foundation with the CRA).

Giving back and sharing wealth with a Charitable Giving fund ensures that your legacy is managed professionally and keeps on giving!