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 Legacy Today and Beyond
A DAF set up during one’s lifetime can continue beyond one’s passing. You can make donations to your DAF during your lifetime, and name a successor to carry on your family values and legacy, as well as the responsibilities of your DAF.
Ease of Set Up
A DAF can be set up quickly and easily without a requirement for legal or other professionals.
Gifting Flexibility
Donors make irrevocable donations to a DAF today and recommend grants to their chosen charities and ministries at any time, now or into the future.
Enhanced Giving Power
The Foundation uses investment management services from ZLC Wealth Inc., a discretionary portfolio management firm. Any growth in the total asset value of a DAF accumulates tax-free because the Foundation is a registered charity, enlarging the potential for granting to one’s favourite charity in the future.
Privacy & Anonymity
You can choose to remain anonymous when making grants to charities or receive recognition by disclosing your name, address and/or your DAF to grant recipients.
No Start-Up Costs
There are no start-up costs for establishing a DAF, unlike creating a private foundation where legal fees, investment fees and accounting fees are just some of the costs.
Simplicity
All administrative, investment and record keeping services are provided by the Foundation. No additional tax returns or accounting services are required by the donor.
Confidential Reporting
A 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.
Granting Privileges
A contribution from a single source to a DAF can easily be granted as cash to any number of charities. (Example: one gift of appreciated securities can be divided between many charities)
Multiple Donors
Anyone can contribute to your DAF, and a personal donation receipt will be issued to them.
Immediate Donation Receipt
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 Foundation representative and completing a Gift Agreement provided by the ZLC Foundation. 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 founding donor and may choose one DAF Advisor selected by the Donor to advise the Foundation. The Donor 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
The Foundation 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 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 the Foundation will provide the grant on your behalf from your DAF account. Donors can recommend grants to their chosen charities at any time.
The Foundation is subject to the laws applicable to Canadian registered charities, and can only accept grant recommendations that are made to qualified donees as defined in the Income Tax Act.
5. Investment Management Services
Once the donation proceeds have been received by the Foundation, they will be deposited by the Foundation in an investment account at ZLC Wealth Inc., a discretionary portfolio management firm.
For DAF accounts less than $250,000, the funds will be pooled with other donations in an interest-bearing savings account. Interest income earned, and fees incurred will be allocated to each DAF.
DAF accounts over $250,000 have the option to open a separate investment account at ZLC Wealth Inc. and make an investment recommendation based on the granting objectives for the DAF. Investment gains, losses, income and investment management fees will be allocated to the particular DAF. It is expected that the $250,000 investment account size be maintained over time. Should a DAF Advisor recommend a grant(s) that would reduce the DAF below this minimum amount, the Foundation at its sole discretion may close the separate investment management account at ZLC Wealth and pool the funds with the other donations. Notwithstanding other policies maintained by the Foundation, the DAF will continue as a DAF for the donor.
Investment Management fees for services provided by ZLC Wealth Inc. for all DAFs is 0.75% per annum.
6. Administration Fees
The Foundation charges an administration fee of 0.5% per annum to all DAFs.
7. Tax Receipts & Administration
Donations to the Foundation 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.