1. Charitable Gift Program
Helping you create a lasting legacy

2. Agenda What Sets Us Apart? Role of the Client
Overview
What Sets Us Apart?
Role of the Client
Contributing To A CGF Account
Investment Solutions
Donation Receipts and Tax Benefits
Applicable Fees
Grants and Disbursements
5 Features Of the CGP You Must Know
Benefits

3. “We make a living by what we get, but we make a life by what we give.”
Winston Churchill
If your considering how to give an enduring gift to a cause important to you, you have many choices….

4. Traditional Charitable Giving Structures
One-time Gift
Private Foundation
Public Foundation
Convenient Alternative:
RBC DS Charitable Gift Fund

5. What is a Charitable Gift Fund?
An investment structure that allows you to create a foundation without the set up costs of a private foundation
Easy, convenient way to support charitable causes you care about today and in the future, while receiving important tax benefits

6. The Charitable Gift Funds Canada Foundation
Administrator of the RBC Dominion Securities Charitable Gift Program.
Established in 2003
An independent, non-profit charitable organization registered with the Canada Revenue Agency (CRA) as a public foundation.
Entrusted with the responsibility of managing and administering your charitable gift fund.

7. The CGFCF is able to offer you:
Transaction processing and disbursement of contributions and grants.
Complete accounting and reconciliation procedures for all funds, using state-of-the-art technology.
Preparation and filing of federal and provincial regulatory documents.

8. Why Work with the CGFCF?
Build
Buy
Rent

9. What Sets Us Apart? much less initial capital; $25,000 minimum.
no start up costs
comparable annual expenses without the hassle of doing any of the administrative work.

10. Grant Recommendations Current Year Tax Credits
Role of the Client
Step 1
Open Account with Irrevocable Donation
Step 2
Donation is Invested and Managed by DS
Step 3
Grants Recommended to Registered Charity(s)
Cash
Investment Options
(19)
Grant Recommendations
Securities
Insurance
Donation Receipt
Current Year Tax Credits

11. Enduring Family Legacy
Like a private foundation, you can also give your fund a unique name that reflects your family’s legacy, such as The Smith Family Fund for the Arts.
You can also name grant advisors and successors to your fund so your family’s legacy continues.
If no surviving successors after you pass away, CGFCF will continue legacy by awarding grants to eligible charities consistent with your original intent., or a charitable remainder trust.

12. Contributing to CGF
Minimum contribution required to create and maintain a fund is only $25,000.
You may contribute cash, appreciated publicly listed securities or other assets to the fund.
You can name your CGF as the beneficiary of a charitable bequest, a life insurance policy, a qualified RRSP, or a charitable remainder trust.

13. Investment Solutions
You can recommend an investment strategy for your gift contributions, choosing from a wide range of options professionally managed by RBC Dominion Securities.

14. Preferential Tax Treatment
What Does This Mean?
The donation receipt issued for the full market value of the assets results in a generous tax credit and a reduction of tax payable on other income.
You may be able to effectively give more!

15. - Dependent upon the selected option
Applicable Fees
Applies to # 1
Average
Daily Account
Balance
CGFCF
Fee Schedule
(Per Annum)
First $2.5M
.75%
From $2.5M to $5M
.65%
Above $5M
Negotiable
Each CGF account is subject to:
1) A charitable administration fee paid to the Charitable Gift Funds Canada Foundation
2) Investment Management Fee
- Dependent upon the selected option

16. Grants and Disbursements
Annual disbursement = % amount of the account made available for granting in any one given year.
You can make recommendations on how account earnings are distributed to your favorite charities throughout your lifetime and, if desired, in perpetuity.
Annual disbursement policy of the CGFCF is currently 4.0% minimum. However, the percentage of investment earnings disbursed each year is subject to the discretion of the CGFCF.
The Foundation will only approve grants to qualified charitable organizations registered with the CRA.

17. Reporting
Donors will receive a quarterly report from the CGFCF, detailing contributions made and describing the growth of their CGP account at DS.
DS monthly statements are sent to CGFCF, as they are the client of record with Dominion Securities.

18. 5 Features Of The CGP You Must Know
Contributions to a RBC DS CGF are irrevocable
The CGF is a 10 Year Locked In account
Control Recommendations
Granting Limits are set by the CGFCF
Requirements are the same for all public foundations.

19. Benefits A Flexible Charitable Giving Instrument
Today and Forever A single contribution to a CGF account today allows your client to recommend grants to multiple charities - each year, every year – forever
Attractive Tax Credits
Preferred Tax Treatment on Appreciated Securities
Potential to Give More Over Time Potential for tax-free growth in your client’s CGP account, preserving the purchasing power of the assets under management, and increasing your client’s ability to give more to charities over time.
Allows Client to Solicit Donations from 3rd Party’s to Make a Lasting Legacy (memorialize a loved one, create a community image)

20. Cont…Benefits Create a Legacy of Giving
Clients can name successor advisors to their CGP account to continue the tradition of giving beyond their lifetime
Separation of Tax Planning and Charitable Gift Planning Decisions
Attractive tax advantages can be realized through generous giving today, while grant recommendations in support of qualifying charities can be thoughtfully considered for implementation tomorrow.
Simplified Foundation Administration & Record Keeping
Confidentiality Maintained
(Grants) recommended by your clients can be made anonymously

21. Support
Search DS Online for charity database; includes categories, charity descriptions, registrations numbers etc.

22. If you want a convenient way to create an enduring legacy while enjoying important tax benefits, the RBC Dominion Securities Charitable Gift Program may be a good choice for you.
Please contact your
Investment Advisor
for more information.

23. The strategies, advice and technical content in this presentation are provided for the general guidance and benefit of our clients, based on information that we believe to be accurate, but we cannot guarantee its accuracy or completeness. This presentation is not intended as nor does it constitute legal or tax advice. Clients should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. This will ensure that their own circumstances have been considered properly and that action is taken on the latest available information. Interest rates, market conditions, tax rules, and other investment factors are subject to change.
This presentation has been prepared for use by RBC Dominion Securities Inc.* and RBC DS Financial Services Inc. (collectively, the “Companies). The Companies and Royal Bank of Canada are separate corporate entities which are affiliated. In Quebec, financial planning services are provided by RBC DS Financial Services Inc. which is licensed as a financial services firm in that province. In the rest of Canada, financial planning services are available through RBC Dominion Securities Inc., and RBC DS Financial Services Inc. Insurance products are only offered through RBC DS Financial Services Inc., a subsidiary of RBC Dominion Securities Inc.
Unless otherwise indicated, securities purchased from or through RBC Dominion Securities Inc. are not insured by a government deposit insurer or guaranteed by Royal Bank of Canada and may fluctuate in value.
RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member CIPF. ® Registered Trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence.
©Copyright 2005 Royal Bank of Canada. All rights reserved.