HOME > CONTRIBUTE > LEGACY/planned GIVING
   
Will the legacy you leave ... reflect the life you lived?

Gifts of Endowment

Create a legacy by contributing a sum of money, or other asset, to the general endowment fund of the Evangelical Fellowship of Canada. Named endowments may be possible if certain conditions are met. To obtain more information about named endowments, please contact the EFC. Your endowment gift will support God’s work for an extended period of time during your lifetime or, after you have departed this life. An endowment gift ensures the financial well-being of EFC for years to come. Endowments in perpetuity may be made in any amount providing the funds are added to the general endowment of the EFC. You can view more information on 10-year gifts (endowments) at the CRA website.

The EFC prefers that endowment gifts be structured as 10-year gifts but is open to discussing gifts that are to be held in perpetuity. All endowment gifts qualify for a charitable tax receipt at the time of completion. Canada Revenue Agency has strict rules governing endowments. We can provide these details to donors as well as a sample endowment agreement that is acceptable to us.

It is important that the endowment agreement between the donor and the EFC contains certain clauses because of the lengthy term for which the EFC is obligated to hold the gift. The power to vary clause allows the EFC to change the purpose for which the funds will be used. The EFC will determine the best approach to management of endowed funds it receives and use its investment policy as guidance.

  1. Subsection 149.1 of the ITA describes a ten-year gift as “a gift subject to a trust or direction to the effect that property given, or property substituted therefore, is to be held by the (charitable organization) for a period of not less than ten-years…”
  2. Power to Vary Provision - It is essential that the following statement be included in all endowment agreements: “All donations support the EFC General Fund.”
  3. Managing ten-year gifts (endowments) - The EFC retains the right to either pool endowment funds or to maintain each ten-year gift in a separate account. Whichever management method is used, The EFC will ensure that:
    1. The capital of a ten-year gift, including any resulting capital gains, will not be expended for at least ten-years, Endowment funds will be structured and managed in a fashion that allows the EFC to identify the original gift and the capital gains earned thereon;
    2. It complies with the specific terms of each gift; and
    3. It will not exceed the disbursement quota for endowments set by Canada Revenue Agency.
    4. State that the EFC is entitled to use all, or a portion, of the capital gains to meet its disbursement quota when the income is not sufficient to pay the disbursement requirements.
  4. Investment Policy- When endowing a gift, it is the EFC’s policy to spend annually the income earned on the investment to a maximum of five per cent, and a minimum of 3.5%, of the capital. This number may change in time and remains at the discretion of the EFC. In all instances, the principal will not be eroded, and any additional income earned in excess of the five per cent will be re-capitalized to ensure the growth of the endowment. In years when income does not meet the minimum disbursement requirement of 3.5%, the EFC retains the right to encroach on the capital gains in the endowment fund.

Legacy Giving Links:

Form to obtain Gift Annuity quote

Form for Donation of Securities

LG Contact information:
To know more about legacy giving, please contact Bill Winger, Vice President, Operations at legacygiving@theEFC.ca or (905) 479-5885 x 231 or toll free at 1-866-302-3362 x 231

Copyright ©2014 The Evangelical Fellowship of Canada. All rights reserved.