A Charity for Charities

Building an enduring legacy of positive change

The Barrie Community Foundation exists to support other charities whose work helps make Barrie a better place to live – it is a charity for charities. The benefits provided through this work serve as an enduring legacy; a tangible testimony to the spirit of giving that motivates donors to approach the Foundation in the first place. The Foundation funds initiatives from a broad spectrum of interests including arts and culture, education, social services, and the environment.

Charitable Endowment Funds

Charitable organizations may establish permanently endowed funds to provide a source of annual income for operations or programs. These funds are held and invested by the Foundation and grants are made to the organizations on an annual basis. The Barrie Community Foundation would be pleased to make a presentation to members of any charitable organization. Details on how a charitable endowment fund can benefit your organization follow.

ENDOWMENT PROGRAM FOR CHARITABLE ORGANZIATIONS

If you are a charity considering the establishment of an endowment fund, attached you will find a summary of the questions most frequently asked by organizations. We have provided companion answers to these questions that can serve as a good starting point for any charity.

Once a decision to establish an endowment is made, many charities look to their local Community Foundation as the vehicle of choice to hold and manage their endowment in perpetuity.

What are the factors that influence their decision to use their Community Foundation, rather than establishing an internal mechanism such as a foundation?

• Organizations  recognize the skill, expertise and resource requirement to manage a  permanent endowment. Since the Barrie Community Foundation is in the full-time business of building a  permanent endowment for the community, it has the necessary resources in  place. These resources include:
• A local Investment Advisory Committee that recommends a financial investment policy to the Barrie Community Foundation's Board of Directors;
• Professional investment counsel by the Toronto Community Foundation is monitored and evaluated by the Investment Advisory Committee
• Recent  amendments to the Trustee Act (Ontario)  have presented substantial change in law with respect to trustees’  authority to invest trust assets and the trustees’ fiduciary  responsibilities. More and more  boards recognize the significance of these obligations and are turning to  their local Community Foundation as an alternative. The ability to establish a fund with the  Community Foundation and achieve a greater return on investment over time  due to the diversification and size of the portfolio has impressed many  boards.
• Both  boards and staff of charities have been relieved to focus solely on  building and strengthening their core business and to let the Barrie Community Foundation administer their endowment.
• Cost  efficiencies are achieved by having all funds at the Barrie Community Foundation share in the cost of an investment counsel, custodian, lawyers,  auditors, staff expertise and general overhead.
• Each  year, income earned on the organization’s fund is available to be used by  the charity as it determines or is reinvested in the capital.
• The  Foundation has the technical expertise and the facility to accept gifts in  a timely, cost effective manner on behalf of the agency, e.g. transfer of  shares etc.
• Because  the fund is held as a fund of the Community Foundation, it will be publicized  in Community Foundation materials and could attract new donors.