CHARITABLE GIVING THROUGH ZLC FOUNDATION
Achieving Philanthropic Goals through Professional Planning
Philanthropy requires a strategic approach to charitable giving involving a long-term, multi-generational financial plan to transform a vision into a legacy. Charitable giving is a core pillar of ZLC Financial, and, in conjunction with our financial planning expertise we enable our clients to realize their philanthropic goals through ZLC Foundation’s DAF program.
Achieving Philanthropic Goals through
Professional Planning
Philanthropy requires a strategic approach to charitable giving involving a long-term, multi-generational financial plan to transform a vision into a legacy. Charitable giving is a core pillar of ZLC Financial, and, in conjunction with our financial planning expertise we enable our clients to realize their philanthropic goals through ZLC Foundation’s DAF program.
ZLC Foundation
ZLC Foundation is a charitable public foundation established in 1995 and is registered with the Canada Revenue Agency. Its purpose is to offer ZLC clients a solution to include charitable giving as part of their financial plans while offering concierge service and professional administration of the gifts.
ZLC Foundation
ZLC Foundation is a charitable public foundation established in 1995 and is registered with the Canada Revenue Agency. Its purpose is to offer ZLC clients a solution to include charitable giving as part of their financial plans while offering concierge service and professional administration of the gifts.
What is a Donor Advised Fund?
A DAF is a fund set up by a donor within a public foundation in which the donor is then able to ‘advise’ the board of the foundation as to where and when they would like the income and/or the capital of the fund to be granted, and for what purpose. The donor becomes an Advisor to the DAF unless they choose someone else to take that role.
The funds in the donor advised fund can either be granted directly to a charity or they can be invested and grow tax-free, providing more funds to grant to charities to fulfill a donor’s longer-term philanthropic goals.
KEY BENEFITS OF A DAF
WITH ZLC FOUNDATION
A ZLCF DAF set up during one’s lifetime can continue beyond one’s passing. You can make donation to your DAF during your lifetime, and name successors to carry on your family values and legacy, as well as the responsibilities of your DAF.
A ZLCF DAF can be set up quickly and easily without a requirement for legal or other professionals.
Donors make irrevocable donations to a personal DAF today and recommend grants to their chosen charities and ministries at any time, now or into the future.
Enhanced Giving Power
For ZLCF DAFs over $250,000 using investment management services from ZLC Wealth Inc., any growth in the total asset value of a DAF accumulates tax-free because ZLCF is a registered charity, enlarging the potential for granting to one’s favourite charity in the future.
You can choose to remain anonymous when making grants to charities or receive recognition by disclosing your name, address and/or your Fund to grant recipients.
There are no start-up costs for establishing a ZLCF DAF, unlike creating a private foundation where legal fees, Investment fees and accounting fees are just some of the costs.
All administrative, investment and record keeping services are provided by ZLCF. No additional tax returns or accounting services are required by the donor.
Confidential Reporting
A ZLCF DAF is confidential. Financial reporting to CRA is in conglomerate, not by individual DAF. The public cannot access information on individual DAF contributions and disbursements.
A contribution from a single source to a ZLCF DAF can easily be granted as cash to any number of charities. (Example: one gift of appreciated securities can be divided between many charities.)
Anyone can contribute to your ZLCF DAF, and a personal donation receipt will be issued to them.
Donate now and decide later to eliminate the pressure of selecting charities upfront. A donation receipt will be issued in the year in which the gift is contributed but grants to charities can be decided upon in the near or distant future.
Getting Started
ZLC Foundation’s DAFs are straightforward to set-up and seamlessly
enable charitable giving. Here are the key steps involved in getting started.
1. Establishing the Fund
Individuals, families, registered charities, groups of people, associations, corporations, and other organizations may set up a DAF by meeting with a ZLCF representative and completing a Gift Agreement provided by ZLCF. Donors may wish to name their fund something meaningful to them, or generic for anonymous granting.
2. DAF Advisor Roles and Privileges
Each DAF may have one or more founding donors and may select one DAF Advisor selected by the Donor(s) to have authority to advise the ZLCF. The DAF Advisor must also name a Successor DAF Advisor so that grants can continue to be made regularly upon the death or incapacity of the DAF Advisor.
3. Contributions to the DAF
ZLCF requires an initial minimum contribution and ongoing minimum balance with a fair market value (“FMV”) of no less than $25,000 for the establishment of a DAF. Once a donation is accepted, a donation receipt will be issued and delivered electronically by email to the donor.
The DAF can accept gifts of cash, publicly listed securities, segregated funds, flow-through shares, life insurance policies, and deferred contributions. All gifts shall be brought to the ZLC Foundation’s Gift Acceptance Committee for approval, except for cash, securities and flow-through shares. All fund contributions are irrevocable and become the property of ZLC Foundation.
4. Charitable Grants
Grants may be recommended by the DAF Advisor to eligible charities. The DAF Advisor decides on the amount to give, and ZLC Foundation will provide the grant on your behalf from your donor-advised account. There are no mandatory timelines or grant maximums. Donors can recommend grants to their chosen charities at any time.
The ZLCF is subject to the laws applicable to Canadian registered charities, and ZLCF can only accept grant recommendations that are made to qualified donees as defined in the Income Tax Act.
5. Utilizing Investment Management Services
Donors with DAFs over $250,000 have the option to enhance their giving and request their DAF be managed by ZLC Wealth Inc., an investment firm providing discretionary investment management services. Qualifying donors can consult with a ZLC Wealth Inc. Portfolio Manager to determine the investment goals and investment timelines of their DAF.
6. Administration Fees
ZLCF does not currently charge an administration fee for uninvested DAFs. ZLCF will begin charging an administration fee for invested DAFs of 0.25% starting on January 1, 2024.
7. Tax Receipts & Administration
Donations to ZLCF generally qualify for an individual income tax credit or corporate tax deduction in the tax year in which the donation was made as a charitable donation to a registered charity. We’ll take care of the administrative details. Donors will get statements showing contributions and grants to track your giving and tax receipts to claim charitable donations.
Whether you wish to support the arts or higher education, conserve natural resources, advance medical research or help the world’s underprivileged children, giving through a donor advised fund program may be the right fit for you. For more detailed information on giving through a donor advised fund, please request a copy of ZLC Foundation’s DAF Policies and Guidelines from your ZLC Financial Advisor.
Forms & Policies
Select the documents you would like to download from the list below.