ARTICLES  &  REVIEWS

Your Community Foundation

London Free Press

Most of us at the end of our lives would want to have lived in such a way that we have created value, relationship and leadership in the lives of others.  We would like to know that we have made a difference in the world while we have lived here and that we made a contribution and put more into the world than we took out of.  You would look towards your family relationships, your friendships and your community as a place you would have made the most significant contribution. 

When Bob Kayser retired, he and his wife Alexandra moved to London to be close to their daughter and grandchildren. But they also had another retirement goal – to begin what Bob calls “the payback period of our lives.”

The Kaysers are active in several local organizations, including the Merrymount Children’s Centre and the Boys’ and Girls’ Club. They were planning to set up a private family foundation that would support causes close to their hearts, and involve their children, and eventually their grandchildren, in active and involved philanthropy. “It was important to us to give back to the community in which we are living,” says Alexandra.

After more research, the Kaysers decided they could achieve all their goals simply by establishing a donor-advised fund. “I’m happy to work with London Community Foundation because they’re out there, finding out what the issues are, identifying the needs, and helping us find a match with the objectives of our fund.” says Bob.

The Kaysers focus their granting on organizations that support women and children.

Many of us may never have considered a family foundation because we thought it was for the ultra wealthy and not the average person.  When looking into structuring your own family foundation you would be overwhelmed with the complexity of the structure, the board of directors, the investment policies, the filing fees and the overall creation and maintenance of your own family foundation and would be cumbersome.  However, the London Community Foundation, which is a tremendous success story in London, can provide you your own personal family foundation and you can start with as little a commitment as $5,000.  You can name a foundation for a company, yourself, your family or for a memorial for a loved one that has passed away.  You could seed your personal foundation over a period of time starting with as little as $2,000 per year and building it up over time.  If you reach a threshold of $25,000 you can designate where the funds can be disbursed within London and Middlesex to any organization you wish that would be of your desire.  If your foundation donations have reached $50,000 your family foundation could designate to different charities each year.  You could meet with the London Community Foundation and  discuss where you would like the funds to go.
 
Funding a family foundation can also be done through your Will.  This is a wonderful expression of wanting to provide social capital in a tax efficient manner rather than leaving 50 percent dollars to flow through Canada Revenue Agency and allowing the government  decide how your capital will be spent. 

For example if you were to leave the residual of your RIF to a family foundation in your name it would all go tax-free to your foundation rather than half of it going off to Ottawa.  If today you were to gift shares to your family foundation you would receive tax relief on your capital gain tax.  This would significantly reduce your tax and your donation receipt would be 100 percent.  There is tremendous value in the gifting of shares on a living basis. 

Another simply way to fund a foundation with a larger amount than one may normally be able is through life insurance.  For example, a married couple who doesn’t smoke age 65 could purchase $100,000 of joint life second to die or last to die for $1,600 per year. This $1,600 per year could be tax deductible and you would be leaving $100,000 tax-free into a family foundation on the second death of you and your spouse.  The other way is not to take the deduction for the premium today but take the deduction for the $100,000 of benefit thereby saving the estate tax at the end of the day.  Either way it is a simple way to create a large capital sum.

Once a family foundation is established through the London Community Foundation, it can be a tremendous way for your children to be taught the value of giving to the community and becoming great philanthropic citizens.

The London Community Foundation provides easy access for anyone whether of little means or of great means to set up a family foundation and direct the money to any cause that they feel passionate about.  It could be your local hospital,  educational institution, a mission or the food bank.  This is a great way to make a great testimonial to your life and perpetuate your giving forever.