Answers to Frequently Asked Questions About Donations

What is a community foundation?

Community foundations are non-profit, publicly supported philanthropic organizations. The common mission of every community foundation is to enhance the quality of life in the local area. Community foundations carry out this very broad mission by building permanent endowment funds and using a portion of the annual income generated to support a variety of local non-profit organizations through grants and special projects.

Community foundations are tax-exempt, and recognized as public charities by the Canada Revenue Agency in part because they receive support from the public and their boards broadly represent the areas served. Please click here to view a helpful illustration of this process.

How does a community foundation work?

A community foundation is governed by a volunteer board of directors. Operating expenses are paid from an annual fund fee and/or from gifts designated by donors to cover foundation operating and program costs.

Most community foundation assets are held in separate funds established by local individuals, families, businesses, or charitable institutions. Each fund may have a special purpose, but the foundation board of directors, representing the community, oversees them all.

How do community foundations differ from other non-profit organizations?

Most non-profit organizations have a specific mission. A community foundation’s mission is to improve the quality of life in a given area, in our case, Quadra Island. This broader mission allows us to accept gifts from a wider group of potential donors and to grant funds to a wider group of charitable causes and non-profit organizations – our partners in improving our community, culture and environment.

How do community foundations support other non-profit organizations?

Area non-profits benefit from having a local community foundation because the community foundation helps money stay in a community. Community foundations benefit local non-profits in other ways, too: besides having local grant money available, some non-profits ask the community foundation to manage an endowment on their own behalf.

As it grows, a community foundation gradually becomes a centre for charitable giving in a community. We help make connections between the people who want to give and the organizations needing financial support.

Please see this helpful graphic for details on how community foundations help support community non-profits and community funds.

What is an endowment?

An endowment is a type of fund that is set up to produce income for charitable purposes. A typical endowment fund leaves the principal untouched and distributes only the income generated from investments. The distribution rate reflects the long-term growth patterns of investments.

What does Quadra Island Foundation fund?

Quadra Island Foundation funds projects to build and support a healthy, resilient community for the benefit of our people, culture and environment.

Can I designate my donation to a particular field of interest or a particular charity?

Donations or bequests of $15,000 or more can be designated to a specific charity or a specific field of interest.

Field of Interest Fund – $15,000 or more in cumulative donations: enables a donor to specify the “field of interest” or “area” to which the income from their fund will be directed, annually

Advised Fund – $25,000 or more in cumulative donations: enables a donor to specify a particular charity or several charitable organizations to which the income of their fund will be directed, annually

Partnership Fund – $50,000 or more in cumulative donations: enables a donor to work with the foundation to enrich the quality of life on Quadra Island. Partnership fund donors may meet with a foundation representative each year to provide direction about the distributions for the income of their fund.

Donations Through Your Will

How do I make a gift to Quadra Island Foundation in my will?

If you already have a will and wish to include a bequest to Quadra Island Foundation, have your lawyer draft a new will or prepare an addition, called a codicil. Your lawyer will need to know:

Legal name: Quadra Island Foundation (QIF)
Address: P.O. Box 402, Heriot Bay, BC V0P 1H0
Registered charity number: #71728 4079 RR0001

If I leave a bequest to the Quadra Island Foundation in my will, can I designate the revenue from my donation to a particular field of interest?

Annual contributions of $15,000 or more can be designated to a specific charity or a specific field of interest.

Life Insurance

How can I make a gift of life insurance?

There are three options for this, and you may wish to discuss these with a financial advisor.

  1. Transfer the ownership of a fully or partly paid-up life insurance policy to the Quadra Island Foundation.
  2. Purchase a new life insurance policy naming the Quadra Island Foundation as the beneficiary.
  3. Name the Quadra Island Foundation as the beneficiary of an existing life insurance policy.

Helpful links related to giving a gift of life insurance:

  • Click here for general information about using life insurance as a charitable gift.
  • Click here to understand how tax receipts are issued for charitable gifts of life insurance.
  • Click here to understand what insurance trafficking is.


How do I arrange to transfer securities to the Quadra Island Foundation?

Please complete the securities transfer agreement forms that are found here. Please follow the detailed instructions for the two forms. Send a completed Form 1 to your broker, who will forward a copy of it, along with the securities that you wish to donate, to our investment advisor.

Please keep one copy of each form for your own files, and please ensure that you forward one copy of each form to the Quadra Island Foundation (as directed in the detailed instructions).

Please contact us if you require further information.

How will the Quadra Island Foundation determine the amount of my charitable donations tax receipt for securities I have donated?

You will receive a charitable tax receipt for the full market value of your securities on the date the transfer is received into the foundation’s brokerage account. The tax receipt can be used to create a tax credit for you and reduce taxes payable from other income.

Will I receive a tax benefit if I donate securities?

Direct transfers of publicly traded securities that have grown in value are a tax-effective way to give using option 2, below.

There are two methods:

  • Option 1 – Sell securities, donate cash, deal with taxes later
  • Option 2 – Do not sell securities, instead donate securities themselves to the foundation. You will not be required to pay the capital gains tax and as a charity, the foundation is not required to pay tax.

If you sell securities before you make your donation, the income on your investment will be subject to capital gains tax. Please view the example here for a hypothetical $10,000 donation.

To view or download forms for the donation of publicly listed securities, please click here.

Would it cost me anything to make a gift of securities?

In most cases no, but check with your investment advisor or brokerage company to be sure. Please note that there will be capital gains tax owing if you sell the securities before you donate the proceeds, but the foundation does not pay capital gains tax because it is a charity. The foundation recommends donating by means of a direct securities transfer that we can help you to achieve. Please give us a call with any questions. Click here to view or download the foundation form for a donation of publicly listed securities.

Real Estate

How can I make a gift of real estate?

Please refer to this CRA document for clarifications on real estate donations.