Wealth Management

Ventum Donor-Advised Foundation

The Ventum Donor-Advised Foundation (VDAF) provides a cost-effective and tax-efficient avenue for our philanthropic-minded clients to establish a legacy of giving.

Offering a convenient solution that alleviates the time commitment, expense, and administrative resources typically associated with creating a personal foundation, the VDAF ensures immediate activation without incurring legal or accounting expenses.

Recommendations:

Under the program, donors can make recommendations to the VDAF regarding the organizations they prefer to receive grants from their Fund. Donors specify initial grant recommendations on their Application Forms, including potential percentage allocations if recommending more than one Eligible Recipient.

Naming the Fund:

Donors, on their Application Forms, may suggest a name for their Fund. Unless wishing to remain anonymous, the Fund’s name is generally published in connection with donations made on behalf of the Recipient, and in correspondence with the Donor. The name may include a family name (e.g., the Jones Family Fund), specify a particular purpose (e.g., the Jones Family Fund for the Arts), or be entirely generic (e.g., the Fund for the Arts). However, the term “Foundation” cannot be used to avoid confusion with private Foundations

Eligible Recipients:

The Foundation can only make grants to registered Canadian charities under the (Canada) Income Tax Act.

Eligible Donations:

The initial donation to establish a Fund within the VDAF, along with subsequent donations, may be made in cash or publicly traded securities. Designated RRSPs, RRIFs, or Tax-Free Savings Accounts may also name the Fund as a beneficiary.

Cash Donations:

Cash donations, not transferred from a client’s existing account, must be made by cheque or wire transfer in Canadian Dollars. The VDAF issues an official tax receipt for the full amount of the cash donation.

Donations of Publicly Traded Securities:

Donations of publicly traded securities must be transferred “in kind” to the VDAF, with tax receipts issued for the fair market value of the securities.

Donations of Flow-Through Shares / Restricted Securities:

Donations of publicly traded Securities that were designated as Flow-Through Shares are a proven tax advantageous, philanthropic tool. In accordance with CRA rules, the VDAF manages the disposition of the securities. Valuation of restricted (privately placed or otherwise) securities are valued for charitable receipt purposes the lesser of the purchase price of the fair market value of these securities as described above is subject to a discount of 1% per month, based on the number of months remaining before the restriction expires.

PI Financial Corp. and Echelon Wealth Partners Inc. are now Ventum Financial Corp.

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