Last Minute Significant Gifts

Date: December 15, 2012 Author: aque Categories: Latest News
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At this time of the year, the December 31st tax deadline for charitable donations looms large. This is especially true for clients with a major tax event during the year, such as a business sale or perhaps a pending exercise of stock options. Often the client is considering an exceptional charitable donation, or perhaps establishing a private foundation, but there is no time to sort out the details. Aqueduct Foundation has a solution.

As its name implies, the Foundation serves as a bridge to other registered charities. We're a neutral charitable intermediary that helps affluent individuals make significant gifts to charity. Since inception, Aqueduct has made grants of more than $200 million to other registered charities through "short-term" donor advised funds.

The short-term donor advised fund for significant year-end donations is a straightforward concept, but it is rare in Canada. Simply, it's a fund that enables a gift to be made, a tax receipt issued, and time for the donor to choose charities. Short-term funds typically exist for 4 to 24 months. There could be a single grant to a private foundation that is set up the following year. Alternately, grants can be made to any of Canada's 89,000 registered public foundations or charitable organizations.

The primary advantage of a short-term fund is timing. Aqueduct provides time to make the gift before a tax deadline. It also provides time (and flexibility) for the donor to reflect on the ultimate distribution to charities of his or her choice. The result is better planned, larger and more thoughtful gifts to charity.

Aqueduct Foundation has a few other hallmarks.

  1. It's nimble. It's private. Funds can be established and funded in as little as 24 hours.
  2. It's experienced with large, complex gifts. For short-term funds, we have received gifts ranging from $200,000 to $30 million resulting from public M&As, stock options, restricted stock, and private share donations.  
  3. It's private. We work in confidence with the donor's advisors and we release no information about donors or their donations.

 If you have a client who is interested in making a significant charitable gift and is facing a December 31 tax deadline, please contact us:

Malcolm D. Burrows
Toronto 1-866-216-2116
philanthropy@scotiawealth.com

Rosaline Chan
rosaline.chan@scotiaprivateclient.com