TerraTundra Foundation
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Frequently Asked Questions

General

Q. What is the TerraTundra Foundation?
A. The TerraTundra Foundation is a non-profit, tax-exempt, public charitable organization whose mission is to increase philanthropy in Canada by operating a donor-advised fund.

A donor-advised fund is a charitable giving vehicle that offers immediate tax deductions to donors, yet allows several years for planning and potential account growth before any portion of the donor-advised account assets must be distributed to charities. Distributions from a donor-advised account are based on recommendations by the donors or other authorized parties, and are subject to the Foundation's approval.

The majority of its directors are independent of Terra. Although Terra provides certain investment management and administrative services to the Foundation, it is not a program or an activity of Terra.

Q. What are the top reasons you would consider the TerraTundra Giving Fund?
A. Simplicity - easily consolidate your charitable giving
Flexibility - choose the size and timing for grants
Low Cost - as compared to a private foundation
Tax-Free Growth - see you charitable dollars grow so you can give more
Tax advantages - you receive an immediate tax receipt
Legacy - establish a philanthropic tradition now and for future generations

Q. Why set up set-up a Donor-Advised Account instead of a Private Foundation?
A. Creating a new private foundation requires both philanthropic and organizational management skills which may take time to develop. By opening a donor-advised account a new philanthropist can focus on developing a portfolio of worthy charities, testing out different giving areas to find his or her strategic giving focus, and getting hands-on experience with the giving cycle. The individual client can then fund a new private foundation later after acquiring experience in grantmaking. Assets in a DAF can often be granted to a private operating foundation.

Q. How do I establish a Donor-Advised Account?
A. To open an account, please contact your financial advisor or download from www.terratundra.org. Please read the TerraTundra Giving Fund Program Guide before making your donation.

Q. How can the Fund be named?
A. Many donors elect to name their funds after themselves (e.g. The John Henry Charitable Fund), loved one (e.g. The Tracy Henry Memorial Fund) or choose to remain anonymous.

Q. What are my investment options?
A. TerraTundra offers 3 mutual funds to choose and may later change their recommendation.

• TerraTundra Money Market Fund
• Terra Small Cap Growth Fund
• TerraTundra Dividend Growth Fund

Q. Will I receive any reporting on my Fund?
A. Yes. The donor and the Fund's advisor will receive semi-annual reporting about the Fund.

Donations

Q. What is the minimum donation?
A. The minimum initial donation to the TerraTundra Foundation is $2,500 for A or R Class shares and $25,000 for F Class shares. Donors receive a tax receipt for the donation amount and for each subsequent donation.

Q. What is the minimum for additional amounts?
A. Each additional donation must be in increments of $1,000.

Q. When is the donor's donation considered a gift?
A. The donation is considered a gift when ownership of the donated asset has been transferred and accepted by TerraTundra Foundation.

Q. What types of assets may be donated to the Foundation?
A. Cash (personal and bank cheques or by wire transfer), publicly listed stocks and bonds and mutual funds are all eligible.

Q. How is the fair market value of a donation determined?
A. The fair market value of a contribution is determined according to guidelines. For mutual fund shares (including TerraTundra Equity Income Fund) the fair market value is the closing price (net asset value) for the mutual fund shares on their donation date, multiplied by the number of shares donated.

For stocks and bond certificates the fair market value is the average of the high and low selling prices on the date of contribution, multiplied by the number of units donated. 

Q. Can a donor make a donation from an RRSP or RIF?
A. Donor's may name the Foundation as a beneficiary of a registered plan.

Q. Can an organization including a business set up a Donor-Advised Fund
A. Yes. The organization must provide the name of individuals who will make recommendations on behalf of the Fund. The tax receipt issued will be in the name of the organization or business.

Q. Can a group of individuals pool their money to establish a Donor-Advised Fund?
A. Yes provided each donor contributes a minimum of $2,500 and the collective contributions meet the initial minimum amount requirement of $10,000 or more. The group must also appoint an individual who is responsible for making recommendations on behalf of the Fund.

Q. Can a donor name the Fund to his or her Will?
A. Yes a bequest in your Will allows you to make a donation to the Fund. Donor's should consult with their legal advisor.

Grant Recommendations

Q. Are grants tax-deductible?
A. No, donors would have received a tax deduction at the time a contribution was made to the donor-advised account.

Q. Are grants subject to approval?
A. Your contribution to the Foundation is an irrevocable gift and therefore all assets in your donor-advised account are the property of TerraTundra Foundation. All grants are subject to the Foundation's approval and may not violate CRA guidelines or guidelines of the Foundation.

Q. Can I make grants anonymously?
A. Yes. On your application form simply indicate that grants from your account be sent to charities anonymously.

Q. Who can make recommendations on granting?
A. Only the donor may make recommendations unless you have recommended an "Account Advisor" to make recommendations on your behalf. You may rescind their authority at any time. This authority is automatically terminated on your incapacity or death.

Q. Can my advisor play a role in managing the assets I donated?
A. Yes you can authorize your advisor to be an account advisor to select asset allocations among the funds offered by Terra and TerraTundra.

Q. Can my children be involved in the donor-advised account?
A. Children may be named as account advisors or successor-advisors. Account advisors can recommend grants to charities and request exchanges between funds. Successor-advisors receive the same privileges upon becoming account advisors after the death or inability to act due to incapacity or disability of the last remaining advisor. If a minor becomes an account advisor, a legal guardian usually is required to act on the child's behalf until the child reaches the age of majority.

Q. Is there a minimum balance for the donor-advised account?
A. Yes. The minimum balance is $500.

Q. Is there a minimum contribution for the donor-advised account?
A. The minimum initial contribution is $2,500 or more with subsequent additional gifts being $1,000. The minimum outgoing grant is $500 per year (see next question). These guidelines apply to minimize the operating expenses of the Foundation so that more money is available for distribution to charities.

Q. What is the minimum grant?
A. TerraTundra Foundation accepts grant recommendations of $500 or more in increments of $50.

For stock and bonds delivered electronically, the fair market value is the average of the high and low selling prices on the date of contribution, multiplied by the number of units donated. The date of the contribution is the date the transfer is made on the books of the issuing entity or its transfer agent.

Q. Can I grant to more than one charity each year?
A. Yes, the donor may grant to multiple charities provided that the minimum grant for each charity is $500 or more.

Q. Can I choose when to grant?
A. You are required to make a grant each year with the option to choose from four different grant payment dates in a year: March 1st, June 1st, September 1st and December 1st.

Charitable Organizations

Q. How can my organization obtain a grant from TerraTundra Foundation?
A. TerraTundra Foundation only awards grants based on donor recommendations and/or instructions of its directors. The Foundation does not accept grant proposals from organizations nor does it endorse particular charities or recommend them to its donors.

To approve a donor grant recommendation the Foundation requires the potential recipient to provide its full name and contact information, documentation of its mission and activities, and proof of its tax-exempt status with CRA.

 
 
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