GiveWise Foundation Canada (“GW” OR “GiveWise”) DONOR ADVISED FUND (DAF) PROGRAM GUIDELINES
I. INTRODUCTION TO GIVEWISE
We are grateful you (the “Donor”) have chosen to facilitate your charitable giving through GiveWise Foundation Canada (“GiveWise”) and congratulate you on the impact you will be making in the world. These Program Guidelines set forth an overview of the policies and procedures for establishing a Donor Advised Fund (“Giving Fund”) and the terms and provisions governing the administration of each Giving Fund.
GiveWise aims to deliver a trusted and inspiring giving experience through a simple and widely accessible platform. GiveWise empowers people of any means to be intentional and informed donors, see the effective change they create, and experience joy with their giving.
All activities of GiveWise and all participation by Donors are subject to these Donor Advised Fund (DAF) Program Guidelines and the policies referenced within the Gift Acceptance and Valuation Policy, Investment Policy Statement, and Terms & Conditions, which can all be viewed at www.givewise.ca under the Policies & Documents section at the bottom of the website.
All prospective Donors should consult their legal, accounting, and/or tax advisors regarding any implications of participation in GiveWise.
GiveWise Foundation Canada is a Canadian Registered Charity #70103 2526 RR 0001.
II. ESTABLISHING & MAINTAINING A GIVING FUND
What is a Giving Fund A Giving Fund is a charitable giving account designed to invest, grow, and give assets to charities for meaningful and lasting impact. Consider a Giving Fund to be like a bank account for charitable giving. Once funds are contributed, they are non-refundable, and the Donor receives an immediate tax receipt.
Giving Wallet vs Investment Account Giving Funds are comprised of a Giving Wallet and an Investment Account. Funds targeted for immediate distribution should be left as cash (referred to as the Giving Wallet), while those intended to be held for a longer duration or for growth are appropriately invested (referred to as the Investment Account). It is recommended that enough funds be left in the Giving Wallet to satisfy the next three months’ worth of gifts, as well as administration fees. For more information on Investment Accounts, see INVESTMENT ACCOUNT MANAGEMENT.
Getting Started A GiveWise Giving Fund can be opened quickly with no cost. Simply visit www.givewise.ca.
Username The Username on a Giving Fund comes from the first and last name or Corporate Name entered during the first stage of sign-up. The tax receipt will be issued to this name; therefore, this name must match the source of the donated funds that will populate the fund.
Choosing the Fund Name The Donor also chooses a Fund Name, which allows for more flexibility and personalization than the Username. The Fund Name will be included on all grant letters to charities, along with the Username. As an example, the Donor has the option to name their Giving Fund “Our Family Giving” or “The Family Memorial Fund.” This can be changed at any time.
Ownership All contributions into a Giving Fund are irrevocable and non-refundable. The GiveWise Board of Directors has ultimate authority and control over all Giving Funds. Each Giving Fund is reflected and recorded as a component fund and is separately identifiable.
Annual Disbursement Quota (Annual Gift Requirements) Based on CRA guidelines, every Giving Fund must meet the minimum annual gift requirement of 5% of the balance as at January 1 of a given year. This must be gifted within the calendar year, as established by GiveWise.
Giving Fund Roles
Donor - The original owner of the asset(s) that has been donated to a GiveWise Giving Fund. Unless the Donor requests that gifts be made anonymously, all gifts to charities will include the donor’s name and email address.
Designated Advisor – A financial professional who is nominated by the Donor to perform various functions within the Giving Fund on the Donor’s behalf, such as gifting securities, rebalancing investments, and sending gifts.
Successor Donor - An individual who is nominated in the GiveWise account succession plan to act as the Donor when the current Donor/Advisor(s) is deceased or otherwise unable to act due to incapacity or disability.
III. CONTRIBUTING TO YOUR GIVING FUND
Contributions There is no minimum balance required to open or maintain a Giving Fund. Donations (referred to as “contributions”) may be made from individuals, donor advised funds, trusts, estates, and other foundations. Contributions to a Donor’s Giving Fund are irrevocable after they are accepted, cleared, and receipted by GiveWise, who retains exclusive legal control over contributions. For full details on regulations and guidelines for contributions, please reference the Gift Acceptance and Valuation Policy.
Contribution Acknowledgement & Valuation All cleared contributions will be acknowledged with an email notification and an official tax receipt will be available immediately, if applicable. All official tax receipts for contributions will comply with the Income Tax Act (ITA) and Regulations. GiveWise will follow all CRA and standard practice guidelines for the industry in valuing all outright and deferred contributions.
Methods of Contribution GiveWise accepts donations of monies in Canadian dollars by Electronic Funds Transfer (EFT) through Bank Transfer and Interac e-Transfer, cheque, wire transfer, and credit card. Donors receive credit into their Giving Fund for each contribution effective the day the assets are received by GiveWise.
Other types of contributions may include publicly traded securities, preferred shares, cryptocurrency, real estate, and planned gifts such as a Donor naming GiveWise in their Will. GiveWise recommends that individuals seek Independent Legal Advice (ILA) prior to making any significant outright or deferred gifts.
Contributions that Cannot Be Accepted GiveWise reserves the right to decline any contributions. For example, a gift that does not comply with CRA regulations.
Timing of Contributions Generally, the date of any contribution is the date on which the asset is received by GiveWise. If the date of the contribution cannot be determined, GiveWise will follow pre-determined guidelines set out in the Gift Acceptance and Valuation Policy.
A tax receipt at any time through the Donor’s online Giving Fund. Timing of receipt at year end can be critical. Please see schedule below for cut off dates.
Fees for Contributions – GiveWise strives to accepts donations and contributions at no cost to the Donor, however, some types of gifts can be complex and may be charged an Administration Recovery Fee. The tax receipt will be issued for the full value of the donation and the fee is deducted after. Please refer to Appendix I – GiveWise Fees & Fee Structure for a comprehensive list of fees.
IV. GIFTS TO CHARITIES
Gifts to Charities (also referred to “grants”) can be made to any registered Canadian charity or qualified donee with a recommended minimum of $20. Gifts can be set up on a one-time or recurring basis.
Gift Recommendation Fulfillment Gift recommendations are reviewed for approval within 48 hours of submission, provided there are sufficient funds in the donor’s Giving Wallet, unless additional due diligence is required.
Grants are issued to charities weekly. To keep administrative costs low, GiveWise sends all funds to charities electronically. Therefore, if a charity has completed the bank setup process, funds should be received by the charity within 9 – 11 business days of approval. If a charity cannot be reached or bank setup is not completed, GiveWise reserves the right to cancel gifts, at which point the funds will be returned to the donor’s Giving Wallet balance for distribution elsewhere.
It may take up to 30 days for money movements of over $100,000 from existing Giving Funds. Examples include large gift recommendations to charities or investment of existing Giving Fund balances that were not previously invested.
Gift Restrictions All gift recommendations are under the exclusive legal control of GiveWise, who reserves the right to refuse a gift recommendation based on legal obligations, tax-exempt status, internal policies, or improper purposes.
If funds gifted are for an impermissible purpose, remedial action will be taken to have the funds returned. Remediation may require that the Donor make an additional contribution to reimburse GiveWise for any costs incurred as the direct result of the gift.
Gifts are not permitted if there is personal benefit provided to the Donor or a related person to the Donor. The restrictions for recommended grants are as follows:
Dues or membership fees
Purchasing tickets to a benefit
Purchasing goods at a charitable auction
Private benefit for any individual(s)
Gifts that are earmarked to support a particular volunteer
NOTE: Please refer to the CRA guidelines for the full explanation of charitable grant restrictions.
V. SHARE FUNDS WITH OTHERS
Sending Share Funds to Others Donors have the privilege of passing on their generosity to others, by using the “Share Funds” feature. By sharing funds, Donors can email funds from their Giving Fund to another person. In order to accept the funds, the recipient must create a GiveWise Giving Fund. If accepted, the funds will be credited to the recipient’s Giving Fund and can then be gifted. As with all charitable funds that have been contributed to GiveWise, the Donor and recipient of the shared funds agree that there is to be no material personal benefit resulting from the use of these funds. The recipient does not receive a tax receipt for these funds, because the sharing Donor will already have been receipted for them.
Share Fund Expiration Initiated Share Funds will remain outstanding for 30 days, at which point the transaction will be cancelled and the funds will be returned to the initiating Donor’s Giving Fund.
VI. INVESTMENT ACCOUNT MANAGEMENT
Investment of Giving Fund Giving Funds that maintain a balance of more than $25,000 can be invested for tax free growth. A Donor may choose to involve their Financial Advisor, and GiveWise will work with the Financial Advisor to establish the Investment Account.
If no Financial Advisor is involved and funds are invested by GiveWise on behalf of the donor, Administration Recovery of 1% per annum will be assessed to the Giving Fund.
Investments should be made with consideration for time horizon for gifting to charities that the Donor has in mind.
Please note the timeframe for moving funds between an Investment Account and a Giving Wallet may vary. Donors need to allow enough time to have funds converted to their Giving Wallet when planning a Gift Recommendation.
For further information on investments, please refer to the Investment Policy Statement of GiveWise Foundation.
Investment Expenses and Returns All investment-related expenses are assessed from the Investment Account assets, including mutual fund expenses, custodial charges, and trading costs. Invested balances are expressed in dollars and are updated quarterly, reflected as a Net Asset Value (NAV). All increases in the value of the Investment Account are kept in the Donor’s Giving Fund, available for the Donor to gift to charity. These gains are not considered net new donations, and therefore are not tax-receipted. Conversely, any losses incurred in the Investment Account will be reflected in the Donor’s Giving Fund balance and will have no effect on the Donor’s tax receipt.