Frequently Asked Questions for Donors
What is an endowment fund?
An endowment fund is a permanently invested sum of money whose income is distributed to charitable causes, generally at a rate of 4% per year.
Community Foundation of Nova Scotia assets are held in separate endowment funds established by local individuals, families, businesses, associations
and charitable organizations. Each fund may have a special purpose, but the Foundation’s board of directors representing the community, oversees them all.
How are the Foundation funds invested and managed?
Responsibility for the Foundation’s investment portfolio is vested in the board of directors with the guidance of the Investment Committee. The Investment Committee works closely with professional staff and investment advisors to recommend policy, establish performance benchmarks and monitor the performance of the portfolio.
What types of funds can be established?
Donations to the Community Foundation of Nova Scotia are generally used to establish one or more of several types of funds, any of which can bear the name of an individual, family, corporation or charitable cause; or the fund can be anonymous. Funds include Donor-Advised, Donor-Designated, Discretionary Funds, Scholarship, Bursary and Awards Funds, Named Funds or Other Funds.
Please see Fund Options for more information.
Do I need a minimum amount to set up a fund?
A minimum of $25,000 over a two year period is required.
How do I establish a fund?
The process is very simple and can be done in a matter of hours. It entails choosing a name for your fund, focusing your fund’s impact, completing a fund agreement and then making your gift to the Community Foundation of Nova Scotia.
You can even establish a fund quickly, obtain a tax receipt for the contributed amount and then decide later where to focus your giving from the fund.
What are the financial benefits and tax advantages of gifting through the Community Foundation of Nova Scotia?
Because we manage a number of funds, administrative and service fees are lower due to economies of scale. There is no tax on the capital gain of gifts of publicly-listed securities to a public foundation such as the Community Foundation of Nova Scotia.
What services can I receive as a donor?
Our services include fund investment and management, regular financial reporting to donors, handing all governmental reporting requirements, community knowledge, facilitating granting and ensuring accountability, acknowledging and receipting contributions, fund stewardship and audit services, planned giving and family philanthropy expertise.
Who can give?
Anyone. Donors to the Community Foundation of Nova Scotia include individuals, families, businesses, associations and charitable organizations, all with a common commitment to the community’s well being.
Individuals and families often choose to establish a Donor-Advised Fund instead of establishing a private or family foundation to take advantage of time, cost and tax savings. For more information, please see Donor-Advised Funds Comparison Chart (160k).
Many charitable organizations place their endowment funds with the Community Foundation of Nova Scotia to take advantage of economies of scale and to focus more of their efforts on mandate-related work.
Are community foundations only for the wealthy?
No! Donors range from people of relatively modest means to those with large financial resources. Your contributions are combined to provide maximum impact to the community at competitively priced fund administration.
Can I /should I involve my professional advisor?
The Community Foundation of Nova Scotia works regularly with professional advisors to support and guide donors in the philanthropic process. We encourage you to include any of your advisors as you consider giving to the Community Foundation of Nova Scotia.
I am frequently asked to support organizations and good causes in our community. It is hard for me to say no to people in some situations. Can the Foundation help me?
Yes, donors can simply direct all solicitations to the Community Foundation of Nova Scotia. We can field requests, pass them on to you for consideration and advise the charitable organization of your decision. We can even provide you with a business card with the name of your fund and our contact information.
What is the best way to make a gift that will meet unforeseeable needs in our community?
Our community endowment, the Nova Scotia Fund responds to the community’s greatest needs with grants at the discretion of the Community Foundation of Nova Scotia’s board of directors.
Can I give anonymously?
Yes, anonymous gifts are welcomed by the Community Foundation of Nova Scotia.
Does the Community Foundation of Nova Scotia share donor information?
Donors are protected from unwanted solicitations – we do not share donor information with other organizations. Please see our Privacy Policy for more information.
What types of gifts does the Community Foundation of Nova Scotia accept?
We accept virtually any type of gift including cash, appreciated securities, bequests or insurance policies. Please see Types of Gifts and our Gift Acceptance Policy (PDF 172k) for more information.
Will I receive a tax receipt if I make a donation to the Community Foundation of Nova Scotia?
Our status as a public charity ensures that contributions to the Foundation are tax receiptable. Tax receipts are provided for donations of $25 and up and donors receive tax benefits in the year a gift is made. Grants made from a donor’s established fund are not tax deductible.
What is the Community Foundation of Nova Scotia’s charitable registration number?
Our charitable registration number is 870 389 368 RR001.
Why should I establish a Donor-Advised Fund instead of a Private Foundation?
Starting a private foundation requires the donor to create a new organization, establish a board of trustees, obtain registered charitable status from Canada Revenue Agency, monitor grant making and keep reporting regularly. You can establish a Donor-Advised Fund quickly – it’s simple, cost effective and hassle-free. We provide the fund management, donor administration and grant making expertise. Click here to download a document which can help you to compare your options (PDF 160k).
Why should I establish a fund instead of giving directly to the charity I wish to support?
If a donor wants broader oversight and long-term benefits for a charity or a cause, an endowment fund at the Community Foundation of Nova Scotia makes sense as a way to benefit one or more specific charitable causes for as long as you or your family wish.
Can I pass my role as advisor to my Donor-Advised Fund on to my children?
Yes, not only can you pass your advisor role to your Donor-Advised Fund on to your children, we encourage families to involve their children in the philanthropic process at a young age. Family philanthropy can be a training ground for children; it can help strengthen and deepen family values and relationships, engage children in the larger community and teach practical skills useful in all aspects of life.
If I’m not in a position to establish an endowment fund, can I still give to the Community Foundation of Nova Scotia?
It’s easy to donate right now. You can choose the Nova Scotia Fund, our community endowment that responds to the community’s greatest needs or specify an existing named fund. Charitable tax receipts are issued for donations of $25 and up.
Which charitable causes or organizations does the Community Foundation of Nova Scotia support?
The Community Foundation of Nova Scotia can support any organization or cause requested by a donor as long as it has charitable status with Canada Revenue Agency (CRA). Donors may choose to specify a field of interest and rely on the professional grant making expertise of Community Foundation of Nova Scotia staff and its board of directors.
Is the Community Foundation of Nova Scotia in competition with other non-profits?
No, we are a resource for them. We hold and manage many of their endowment funds and make grants to their institutions. We link donors with a wide range of community organizations and encourage gifts to all kinds of causes and charities. We work collaboratively with other funders and grantmakers to help serve the needs of the whole community.
What is the difference between a community foundation and the United Way?
Both are important resources to the community. The United Way raises and distributes money yearly through an annual campaign, while a community foundation distributes a portion of its annual investment returns from permanent funds endowed in perpetuity. While the United Way generally focuses its funding on health and human services, largely through its member agencies, our focus broadly includes a full range of community interests such as the environment and arts, culture and heritage.