News
Fostering Sustainability for Local Charities
A message from Martha Powell, CEO
If you have ever been involved in a charitable organization, you know that funding is always an issue. Will we have enough to cover this year’s budget? How will we meet the growing demand for our service? What happens next year?
Amabile Choirs of London, Big Brothers, Big Sisters, Brain Tumour Foundation of Canada, Childreach, The Canadian Medical Hall of Fame, Conservatory Canada, Elgin Children’s Foundation, Fanshawe Pioneer Village, The Grand Theatre, London Regional Children’s Museum, Orchestra London, SARI Therapeutic Riding, St. Paul’s Cathedral and United Way of London & Middlesex have found part of the solution in a registered charity endowment fund at London Community Foundation (LCF).
LCF has the mission, charitable tax structure and specialized staff to support registered charities in building and sustaining endowments.
Charitable boards are often attracted to the idea of building capacity and ensuring longevity of their organization through endowments.
A registered charity endowment fund benefits from London Community Foundation’s professional investment management and solid returns that protect the capital to create a “gift that keeps on giving.”
Though some organizations retain the services of lawyers, fund managers and accountants for this purpose, they soon find that the day-to-day management and administration can become time consuming and costly to maintain.
Our services include:
- compliance with Canada Revenue Agency (CRA) reporting and disbursements
- professional investment management
- diversified portfolio of investments
- facilitation of complicated philanthropic transactions such as gifts of securities and life insurance
The advantages are many:
- Your charity’s funds are pooled with London Community Foundation funds for solid returns at lower cost
- You benefit from the Foundation’s experience in managing endowment funds
- Your organization can focus on providing community services while leaving investment issues to the experts
- You can count on an ongoing source of income
- You can make long-term plans based on the earnings from your fund
- Donors who are interested in making an endowed or planned gift to your organization feel confident about making their gift to a LCF-managed fund.
Getting Started
Charitable organizations considering an endowment fund should first ask the following questions:
- Are you a registered charity approved by Canada Revenue Agency (CRA)?
- Can you donate and fundraise the required minimum of $100,000 within five to ten years?
- Can your future donors be convinced that your organization deserves to be backed with a permanent stream of monetary support?
How Charitable Endowment Funds Work
- Annually, the London Community Foundation directs income to the charitable organization for its unrestricted use.
- The Registered Charity Endowment Fund may accept additional gifts at any time. LCF handles the receipting and other donor services such as correspondence.
For more information about setting up an endowment fund or to talk to our investment manager, please contact us at 519-667-1600 ext 102