THE ECHELON DONOR ADVISED FOUNDATION
A low-cost, tax efficient way for philanthropic-minded clients to build a legacy of giving.
The Echelon Donor Advised Foundation
A low-cost, tax efficient way for our philanthropic-minded clients to establish a legacy of giving. The EDAF is a convenient solution to the time commitment, expense, and administrative resources required for the creation of a personal foundation. With the EDAF, there are no legal or accounting expenses and the donor-advised fund will be active immediately.
Recommendations
Under the program, each Donor can make recommendations to the EDAF about the organization that they would prefer to receive grants from their Fund. Donors specify their initial grant recommendations on their Application Forms. If the Donor recommends more than one Eligible Recipient, the Donor may also specify the percentage allocation that each Eligible Recipient is to receive.
Naming the Fund
On their Application Forms, Donors may recommend a name for their Fund. Unless the Donor wishes to remain anonymous, the name of the Fund will generally be published in connection with donations made by the Foundation on behalf of the Donee as well as in correspondence with the Donor. The name of a Fund may include a family name (e.g., the Jones Family Fund). It may also specify a particular purpose (e.g., the Jones Family Fund for the Arts) or it may be entirely generic (e.g., the Fund for the Arts). To avoid confusion with private foundations, the name of a Fund cannot use the term “Foundation.”
Eligible Recipients
The Foundation may only make grants to registered Canadian charities under (Canada) Income Tax Act.
Eligible Donations
The initial donation to establish a Fund within the EDAF as well as any subsequent donations may be made in cash or publicly-traded securities. A designated RRSP, RRIF or Tax-Free Savings Account may also name the Fund as a beneficiary.
Cash Donations
Cash donations that are not a transfer from a client’s existing account must be made by cheque or wire transfer to the EDAF, and must be made in Canadian Dollars. The EDAF will issue an official tax receipt for the full amount of the cash donation.
Donations of Publicly-Traded Securities
Donations of publicly traded securities must be transferred “in kind” to the EDAF. The value of the tax receipts issued for donations of publicly-traded stocks and bonds will be the fair market value of those securities.
Donations of Flow Through Shares / Restricted Securities
Donations of publicly traded Securities that were designated as Flow-Through Shares are a proven tax advantageous, philanthropic tool. In accordance with CRA rules, the EDAF manages the disposition of the securities. Valuation of restricted (privately placed or otherwise) securities are valued for charitable receipt purposes the lesser of the purchase price of the fair market value of these securities as described above is subject to a discount of 1% per month, based on the number of months remaining before the restriction expires.
Clients will receive custom semi-annual statements detailing their contributions, grants and the current market value.
If you are an existing client, please reach out to you Advisor. If you are not, please contact Crissa Pakkidis.
