Financial Model

 
 
 

How Does an Endowment Fund Work?

When you make a gift to LCF, your money is placed in an endowment fund and invested in perpetuity. Each year, the income from the investments is used to grow your fund and make grants to the community.

For example, if you were to donate $10,000 to the cause of your choice, your giving journey would begin and end with your one-time donation. With an endowment fund, your impact grows over time, eventually exceeding the amount of your initial gift.

Cash isn’t the only way to make a gift either, we offer a variety of different giving strategies to help you get started on your philanthropic journey.

*Assuming current market value with a 6% annual return, 4% disbursement rate, and that undistributed income is capitalized into the fund balance each year.

*Assuming current market value with a 6% annual return, 4% disbursement rate, and that undistributed income is capitalized into the fund balance each year.

 
 

Where is your money invested?

To ensure the safety and security of our funds, LCF maintains a diverse investment portfolio, both in terms of asset classes and geography.

chartred.png

canadian fixed income - 20-30%

These are debt instruments, whether debt or equity, of governments or corporations.

lcfgreen.png

US Equities - 20-30%

These are publicly traded securities via pooled funds located in the United States.

lcforange.png

Canadian equities - 15-25%

These are publicly traded securities via a pooled funds located in Canada.

non-north american equities - 15-25%

These are publicly traded securities via pooled funds located internationally.

chartpurple.png

Canadian Real estate - 5-10%

Real properties (industrial, commercial, multi-residential) via pooled funds located in Canada.

 

 For more information, contact Vijay Venkatesan.

lcfgreenlogo.jpg