Under the Investors Group Charitable Giving Program, clients make a gift of money, securities or life insurance to the Strategic Charitable Foundation (a registered charity) which is used to establish a donor-advised account. Annual grants are made from the account to selected charities as recommended by the client.
The new program offers individuals many of the advantages of private charitable foundations with considerably less administration and cost than establishing and maintaining a typical private foundation.
“Canadians have an opportunity to establish a lasting legacy of giving with a charitable donation that generates annual gifts to the charities of their choice,” said Debbie Ammeter, vp, advanced financial planning support at Investors Group. “Not only can clients receive the usual tax benefits associated with charitable giving, they also exercise control over their giving and may choose to involve family members in decisions on recipient charities.”
The program requires a minimum initial donation of $25,000 and clients who make a contribution will receive a charitable donation tax receipt from the Strategic Charitable Foundation. The program also allows donors to benefit from the recent elimination of capital gains tax on donations of publicly traded securities, an important advantage that is not available on donations of publicly traded securities to private foundations.
Donated amounts are invested in one of nine eligible Investors Group mutual funds:
- Investors Income Plus Portfolio
- ; Investors Dividend Fund
- ; Investors Canadian Balanced Fund
- ; Alto Conservative Portfolio
- ; Alto Moderate Conservative Portfolio
- ; Alto Monthly Income Portfolio
- ; Alto Monthly Income and Growth Portfolio
- ; Allegro Conservative Portfolio
- ; Allegro Moderate Conservative Portfolio.
“Canadians have a well-earned reputation for charity,” Ammeter said. “The Investors Group Charitable Giving Program provides an opportunity for Canadians to establish their own annual giving program and leave a lasting legacy.”
Details of the program, including current fees and expenses, and other requirements are available upon request in the program guide.
Donations under the program are irrevocable and vest with the Strategic Charitable Giving Foundation – a registered charitable foundation operating independently from Investors Group – that is responsible for making all investments.