Planned and Legacy Giving
Donors Advised Funds can be an ideal giving vehicle for donors who wish to remain anonymous.
Donors who wish to set aside funds for a charitable purpose, but who also wish to have some flexibility in terms of recommending when a grant is given to their chosen charitable organization and in what amount a grant may be given.
Zakeo is part of a team of students, parents, and volunteers that tend to a community garden. The crops from this garden are sold to offset school fees, making education more affordable. Credit: Rich Townsend / AKFC
The benefits of gifting funds to AKFC
- Donors can choose from various available financial institutions or community foundations to establish or sponsor their donor advised fund. AKFC does not recommend any specific institution for this purpose.
- Donors retain an advisory role in four key areas:
- Investment strategy: Decide on how funds are invested within donor advised fund options.
- Grant recipients: Choose which charities receive grants (e.g. AKFC).
- Grant amount and timing: Determine when and how much to donate.
- Succession planning: Designate successors to manage the donor advised fund and its charitable distributions.
- Donors receive an immediate tax deduction for the full market value of most assets contributed, including cash, securities, or other marketable assets. Any unused charitable donations can be carried forward for up to five years and claimed in a future year, subject to the annual limit for that year.
- Since donor advised fund contributions and their earnings within the account are irrevocable the donor may choose to appoint a successor to manage the funds (including their grant allocation) upon their passing.
- The donor can also designate a charity like AKFC as the successor beneficiary of the remaining donor advised fund balance upon passing. Since a charitable receipt has already been issued, only an eligible registered charity, such as AKFC, can receive these funds.
Understanding Donor Advised funds
A donor advised fund is an account or fund that a donor establishes by making an irrevocable financial contribution to a Canadian charitable foundation. The donor receives a tax receipt from the charitable foundation organization when they make their contribution to the donor advised fund. The charitable foundation will usually hold, invest, maintain, and manage the funds within the donor advised fund and charge the donor an administrative fee.
The donor can recommend that the charitable foundation allocate the funds in the donor advised fund to another Canadian charitable organization (AKFC, for example) in the form of a grant.
Other considerations
Any decision you make with respect to giving a gift to AKFC in your will as part of your planned and legacy giving should be made in consultation with your financial advisor, tax advisor, and legal advisor.
Donors should also take the necessary steps to ensure that they have made adequate provision for their family, heirs, and other individuals requiring support after their demise.
We would welcome the opportunity to work with you, your family and your advisors if you wish to support AKFC through a gift in your will. We encourage you to engage in a discussion with us prior to finalizing your gift, to ensure that it is a gift that AKFC can accept as a Canadian charitable organization. From time to time, AKFC may have to decline gifts that are made without prior consultation.
