CFSEA makes endowment method of giving easy
The Community Foundation of Southeast Alberta (CFSEA) has been working together with worthy groups and causes for many years. The one method they are funded is through legacy giving through endowment. Niki Gray, the executive director of the CFSEA says that anyone giving estate funds through the CFSEA do have some say on the direction of where the funds go.
“The Community Foundation offers donors the power to give through their strategic philanthropy options. Donors can give to any charity or charities of their choice through the Community Foundation by contributing to a charity’s endowment held at the Foundation or by establishing their own endowment fund designated to their favourite charity,” explains Gray. “Donors also have the option of giving to their community’s greatest needs through the Foundation’s Community Fund, contributing to a general area of interest such as animal welfare or food security through a Field of Interest Funds, or directly to the Community Foundation Agency Fund to support the work they do to support organizations across Southeast Alberta.
“A legacy does not always need to start with a bequest - the Community Foundation works with generational families to support their philanthropic wishes so the families can experience the magic of their giving and watch it grow together. Donations of $25 or more receive a charitable tax receipt.”
There is a strong history of endowment giving and the CFSEA, in fact that is how the organization came in existence.
As per the CFSEA website: “The original idea for the Community Foundation came from a local area rancher, Mr. John Ignatius, who had supported other Community Foundations and sought to have a local organization provide similar community benefits. John made the first endowed donation of $25,000 and encouraged his many family, friends and colleagues to follow his example. The Medicine Hat Community Foundation was then founded in 1992 through an act of Legislature of the Province of Alberta. John passed away in January 2000 and, true to his word, left the vast majority of his estate to the Foundation. John’s financial contribution was in excess of $2.4 million but his biggest legacy was the original creation of the Foundation…”
Today the CFRSEA has different committees which look after different aspects of the organization including endowments.
“The Community Foundation’s Endowment Development Committee exists to plan and oversee the program of activities to build and grow the permanent endowment, ensuring that donors are well served, and the public is well educated to planned giving. The committee is Chaired by Jim MacArthur and consists of volunteers from across the region,” stated Gray.
Gray says the CFSEA depends on endowments to keep them funded. She notes the Community Foundation’s support for operating expenses was first established in 1995, only two years after their inception through the sale of Bill Bauman’s 1926 Model T Ford. Shortly after, the Foundation established their own Agency Endowment Fund to support their on-going operating expenses. The Foundation does not budget for donations and primarily relies on the distribution they receive annually from their own Agency Endowment Fund. “Donors including ambassadors, and both current and past staff and volunteers who see the value of the work that the Foundation does contributes to the Foundation’s Agency Fund annually,” explains Gray. “This Agency Fund supports the majority of the operating expenses for the Foundation and allows them to keep a low administrative fee of only 1%. Out of the $1.2 million the Foundation received in donations in 2021/2022, over $1.1 million was permanently endowed. The Foundation relies on the community to contribute to endowments to continue their efforts in supporting the greatest needs across Southeast Alberta.”
Total grants in 2022/2023 were approximately $1,360,000 with the total endowment as of June 30, 2023 being $24,516,890. 230 grants were distributed to 106 organizations in 2021/22.
The Community Foundation oversees four rural community funds across Southeast Alberta. Three of four funds were established in 2019 to support the specific needs in the County of Forty Mile, Special Areas 2, 3, and the MD of Acadia, and Brooks/County of Newell. In 2021, with the generous support of the Cypress County Council, the Foundation established their fourth rural community fund for the Cypress County region. These funds not only focus on supporting their community’s unique needs, they also provide residents an opportunity to give where they live - ensuring their gift stays within their community to support local issues, solutions, and opportunities. Approximately $105,000 was distributed in grants to these four communities in 2021/2022. In that same year, $36,000 in total was contributed to the funds. The local Advisory Committees continue to work with the Foundation’s Regional Development Coordinators to help educate the community about the Community Foundation’s giving and granting opportunities.
Those wanting to donate through the endowment method to the CFSEA, you can go to their website at https://cfsea.ca/wp-content/ uploads/2023/08/Agency-Use-Endowment-building-toolkit-FINALVERSION-AUG1-2-1.pdf