What to Donate
Community Foundation Grey Bruce welcomes donations in many forms. Although donors may make a contribution to any endowed fund held by the Foundation, they may like to gift a larger amount in order to set up their own named endowment. A minimum of $5,000 is required to create the endowed fund.
What to Donate
Gifts of cash and cash equivalents
Gifts of cash or cash equivalents such as donations by cheque, credit card, Electronic Fund Transfer or online payment will be accepted and assigned by the Foundation as directed by the donor.
Gifts of marketable publicly traded securities shall be scrutinized and accepted by the Community Foundation Grey Bruce’s Finance & Investment committee. These securities may be sold upon receipt and converted to cash, depending on market conditions. (see Investment Policy #2009-08).
A donor who advises the Community Foundation Grey Bruce, in confidence, of a proposed testamentary gift to the Foundation, shall be asked to provide, if possible, a copy of that section of the will naming Community Foundation Grey Bruce. The donor may also wish to execute an agreement with the Foundation directing the charitable use of the proposed testamentary gift. Community Foundation Grey Bruce will not serve as executor of a donor’s will.
Gifts of Life Insurance
There are various methods by which a life insurance policy may be contributed to the Foundation. A donor may:
- Commence a life insurance policy of which the Foundation is the owner and beneficiary.
- Assign irrevocably a paid-up policy to the Foundation
- Assign irrevocably a life insurance policy on which premiums remain to be paid and a charitable tax receipt shall be issued for premium amounts.
- Name Community Foundation Grey Bruce as a primary or successor beneficiary of the proceeds.
When ownership is irrevocably assigned to the Foundation, the donor is entitled to a gift receipt for the net cash surrender value (if any) and for any premiums subsequently paid. Refer to policy memo on Insurance Gifts.
Gift of a Residual Interest
This type of gift refers to an arrangement under which a property interest is conveyed to Community Foundation Grey Bruce, but the donor retains use of the property, or income from the property, for life or a specified term of years. For example, the donor might give a residual interest in a personal residence and continue living there, or a residual interest in a painting and continue to display it. The owner is entitled to a charitable tax receipt for the present value of the residual interest.
The donor shall continue to be responsible for real estate taxes, insurance, utilities and maintenance after transferring title to the property unless the Foundation, upon prior approval of the Board of Directors, agrees to assume responsibility for any of these items. Community Foundation Grey Bruce is entitled to require that the donor provide proof of payment of those expenses for which the donor is responsible.
The Foundation reserves the right to inspect the property from time to time to assure that its interest is properly safeguarded. Since this type of situation is not standard, approval must be obtained from the Finance & Investment Committee and Board before the gift is accepted,
Charitable Remainder Trusts
Description: A charitable remainder trust is a form of a residual interest gift. The donor (settlor) transfers property to a trustee who holds and manages it. If the property is income producing, net income after payment of all expenses will be paid to the donor and/or other named beneficiary. When the trust terminates (either at the death of the beneficiary/ies or after a term of years), the trust remainder is distributed to Community Foundation Grey Bruce. If the trust is irrevocable, the donor is entitled to a gift receipt for the present value of the residual trust. Community Foundation Grey Bruce will not serve as the trustee of a charitable remainder trust, but may refer the donor to a trust institution that has agreed to provide this service.
A charitable remainder trust may be funded with cash, securities, real estate or other property acceptable to the trustee and to the Foundation. Real and personal property shall be accepted for a trust only after a thorough review of cash flow, potential liabilities including toxic waste cleanup costs, and other factors necessary to assure that the gift is in the best interests of the Foundation.
The value of the trust shall ordinarily be greater than $50,000 and the age of the beneficiaries shall ordinarily be at least 50, however, the Board may in its discretion waive this guideline.
While Community Foundation Grey Bruce may provide prototype agreements, a trust agreement shall be drafted or reviewed by the donor’s own solicitor for assurance. Before it is executed by the donor, it must fulfill legal requirements appropriate to the donor’s circumstances and accurately reflects the donor’s intentions.
Gifts of Property Including Real Estate, Art, Jewelry etc.
Gifts of property or real estate may be made in various ways: outright, with residual interest, or to fund a charitable remainder trust. Where real estate is transferred to a charitable remainder trust, additional requirements of the trustee must be met (see Charitable Remainder Trusts above).
Donors shall provide qualified appraisals of proposed gifted property. Community Foundation Grey Bruce may:
- At its discretion, obtain its own independent appraisal, and, in such cases, issue a receipt based on the Foundation’s own appraisal.
- Satisfy itself that the donor has clear title to the property.
- Review all pertinent factors, including in the case of real property, zoning restrictions, marketability, prior land use, current use and cash flow, to ascertain that acceptance of the gift would be in the best interests of the Foundation.
- Determine that if the real estate possibly contains toxic wastes, the donor shall secure an environmental audit and provide the results to the Board of Directors. No property containing toxic wastes shall be accepted prior to removal and /or indemnification of the Foundation against all present and future liabilities.
Since this type of situation is not standard, approval must be obtained from the Finance & Investment Committee and Board before the gift is accepted.