A Named Endowment

A named endowment is a charitable investment fund set aside for the long-term support of a charity. It can be established in your name or to honour a loved one.

When you establish an endowment with a registered charity, the principal (or capital) remains permanently invested and only the income, or a portion of the income, is spent annually. The income is used for the purposes prescribed by you – the donor (as approved by the charity’s board of directors). Usually, an endowment is created for a specific purpose or to support a specific program.

An endowment may be funded with an initial gift of $25,000 or more and may be added to during your lifetime by you, your family or friends, or through your estate. Endowments can be established during your lifetime or upon death through your Will.

Benefits:

  • Immediate charitable income tax receipt for all contributions made to the endowment during your lifetime (can be used to offset your current income).
  • Charitable income tax receipt will be issued to your estate for an endowment established and funded through your Will (can be used to offset taxes payable upon death).
  • A named endowment is a permanent expression of your values that will have a lasting impact during your lifetime and long after you are gone.

Endowments may be funded in any of the following ways:

  • Outright donation of cash or other assets;
  • Bequest in a Will;
  • Charitable gift annuity;
  • Charitable remainder trust;
  • Life insurance;
  • RRSPs and RRIFs; or
  • Appreciated securities (i.e. stocks, bonds, mutual funds, etc.).

Disclaimer

The legacy giving information on this website is provided for general information purposes only. It is not intended as legal or financial advice. It is meant to help facilitate discussions between you and your advisors. We strongly recommend that you discuss your intentions with your family and consult with your lawyer and/or financial advisor before proceeding with a legacy gift.