Strangers in Family Foundations
Family charitable foundations are often equally about the family working together as they are about charity. While the purpose of a foundation must be exclusively charitable, the founders’ hope is that future generations of family will have a place to work together and act on their values. But how, particularly in an estate plan, do founders keep a family foundation on course? One strategy is an independent director or trustee.
Should Foundations Give More?
Charitable foundations are grappling with their response to COVID-19. A Canadian initiative, Give5.ca, is advocating for increased granting through a time limited pledge in 2020. Simply, the ask is for foundations to pledge to grant at least of five percent of their assets to registered charities in 2020.
Serving the Charitable Purpose
I want to float a trial balloon about charitable trusts. A clause stipulating that a trust should be limited to using income for charitable purposes, meaning that capital is untouchable, should be viewed as an administrative clause and not part of the charitable objects. The charitable purposes of the trust may be perpetual, but making the trust “income only” is a historical drafting convention that no longer serves the charitable purposes. “Income only” is a scheme that is a means to an end (i.e. the charitable purpose) that is no longer serving the end.