1. As the end of the year approaches people’s thoughts often
turn to their charitable giving.
See if this sounds familiar: You know you want to give to the
causes close to your heart, but you haven’t had the chance
to do the research and choose the organizations that best
line up with your interests and values. On the other hand,
your investment accounts have done well this year and you
know that you could use the tax credit that comes with giving.
But the clock is ticking. You have the charitable intent, but
you haven’t figured out where to give. A Donor Advised Fund
administered by the Raymond James Canada Foundation
(RJCF) can help you turn that intent into action.
What is a Donor Advised Fund?
A Donor Advised Fund, or DAF, is a fund sponsored by a
registered Canadian charity which is structured to accept
charitable donations and then distribute those funds as
grants to other charities over time. The beauty of this is the
original donor makes recommendations, or “advises” the
sponsoring charity (that’s where the name comes from) on
where they would like to see the funds sent. And because the
sponsoring organization is a charity itself, the donor receives
a tax receipt in the year the original gift is made.
The advantage for the donor is that decisions about which
charities to support can be made later. The donor can
establish a fund in one year, receive the tax credit in that
year, but wait to recommend a distribution to one or more
charities in the next year, and the years following.
How Does a Donor Advised
Fund Work?
• You make an irrevocable donation to the DAF.
(With Raymond James the minimum donation is
$100,000.) This money cannot be returned to you.
• You receive a tax receipt for the fair market value of
your donation.
• You can name your fund, as in “The Jones Family
Fund” or “The Martin Fund for the Environment”, or
something similar.
• Assets in the DAF account now grow tax-free, potentially
increasing the amount available for distribution.
• When you’re ready, you recommend grants to be made
to the charities of your choice. Key Point: Your role
is strictly advisory. The RJCF has the responsibility
of conducting due diligence on the charities you
recommend, and accepting (or rejecting) your requests.
• The RJCF does all the administrative work. We cut the
cheques, instruct the charities on any restrictions on
the grant, and report back to you. We also handle the
required accounting and annual government filings.
• You name a successor advisor or advisors who will
take over the advisory role on the account after you
pass away. In this way your legacy lives on through the
next generation.
The Bottom Line
A Donor Advised Fund administered by the Raymond James Canada Foundation is easy to establish and flexible. It can
serve as a powerful tool in your year-end tax and philanthropic planning.
YEAR END TAX PLANNING
& THE DONOR ADVISED FUND
By Mike Todd, Executive Director, Raymond James Canada Foundation
RAYMOND
J
AMES CANADA
F
OUNDATION
P
HILANTHROP
Y
DONOR(S) CHARITY(IES)DONATIONS
ANNUAL
GRANTS
TAX RECEIPTS
DONAR
ADVISED
FUND
This article is provided to you by Raymond James Canada Foundation (the “Foundation”) for informational purposes only. Statistics and factual data and other
information are from source it believes to be reliable but accuracy cannot be guaranteed. This information is furnished on the basis and understanding that the
Foundation is to be under no liability whatsoever in respect thereof. It is provided as a general source of information and should not be construed as an offer or
solicitation for donations or the sale or purchase by Raymond James Ltd. of any product. Securities-related products and services are offered through Raymond James
Ltd., member Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a
member Canadian Investor Protection Fund. Members of the Board of Directors of the Foundation are not arms-length to Raymond James Ltd.