Legacy Giving: The Gift that Keeps on Giving

Legacy Giving: The Gift That Keeps On Giving

by: Pete Lewis, Friend of the Foundation

For many, Legacy Giving, also known as Endowment Giving, is something new. Simply put, money is donated, a charitable receipt is issued for income tax purposes, the principal amount is invested and then, each year only the interest earned on the principal is disbursed to worthy charitable organizations. This means that the giving can continue to support causes that donors care about in perpetuity.

For example, if a donor gives a $1000 gift, after one year the interest earned would be granted to a charitable organization.  After ten years, from that initial $1000 gift, almost $550 would have been granted to local charities and the principle would be about $1200.  After 20 years that same $1000 gift will have granted out over $1200 and have a principal amount of just under $1500. The interest will continue to be granted every single year.
There is often a perception that Legacy Giving is only for the wealthy. In fact, it’s achievable for almost everyone.  To set up an Endowment Fund, you need a minimum of $5000.  This amount may be donated as a one-time gift, as several annual gifts, or even as a monthly contribution. Once your donations reach $5000, you can name a charity to receive the annual interest if you so choose.
One such donor is Derek Lalonde, whose monthly giving also tapped into a matching grant program to make his gift go even further.  As Lalonde offered, “when you are passionate about what you do as a person and professional, it feels natural to give back to the community that has supported you. I get paid monthly so giving monthly matches that.”
For some, giving is a way to honour a family member. One such endowment is the McKee Homes in Memory of Martin McKee Fund.  “My dad Martin cared deeply for our community,” shared Elaine McKee Doel, “and I love knowing that he is continuing to help a little far into the future. I think he would like that too.”
At no time in our past has the draw on community resources been as great as it is now, and with that increase, the need for additional financial resources for local charitable organizations has risen in tandem. Since 2007, the Airdrie and District Community Foundation (ADCF) has been providing grants to many of these organizations through the generous contributions of donors, many who have chosen Legacy Giving as a way to support their community today and in to the future.

“Foundations do amazing work in the community,” shared Airdrie Lawyer and ADCF Chairman Dale Rathgeber.  “By vetting the not-for-profit charitable organizations and the projects, they ensure that your donation goes to where it is needed most and used in the most effective way possible.” Rathgeber added, “while people give to Canadian charities for many reasons, tax relief can be one of them”. ADCF is a registered charitable organization with the Canadian Revenue Agency and provides Income Tax Receipts for all donations.
As Elaine McKee Doel commented, “the Foundation is volunteer operated, and we loved the idea of the capital growing with donations over time and all income being distributed to local groups that demonstrate need. Supporting our community is very important to our family.”
Resilient communities are strong communities.  The ADCF’s Mission is to be the conduit between donors and local charities to ensure the health, vitality, and inclusiveness of our community and to make certain that Airdrie and District remains a special place to live now and for all generations to come. If you have questions or want to learn more about how to give or set up your own Endowment Fund, you can reach the ADCF by visiting their website at airdriefoundation.ca.
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