Advantages of Having Funds Administered by The Community Foundation of Prince Edward Island.
Continuity
Trusts are set up to ensure that the name of the Donor(s) or purpose of the donation(s) will be recognized
and supported
for years to come. Many trusts lack a mechanism of future trustees; The Community Foundation of Prince
Edward Island can
fulfill the role of trustee in perpetuity.
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Recognition Or Anonymity
Some Trusts could benefit from greater public awareness while others may prefer anonymity. Community
Foundations can
provide either.
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Part Of A Large Investment Pool
Although each fund is separately identified in reports, finds are pooled for investment purposes. It is
generally
accepted that larger pools if money bring a higher rate of return and this higher rate of return is
allocated
to the benefit of all component funds.
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Public Accountability
The Community Foundation of Prince Edward Island is committed to transparency and public accountability.
This includes
the holding of a public annual meeting, providing an annual report and having accounts reviewed by an
external auditor.
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Adapting To Changing Circumstances
Needs for which a trust was set up sometimes change and changing the wishes of a donor may require court
approval.
Community Foundations, with their focus on meeting the objectives of the donor, provide a mechanism for the
interpretation
of the donor's wishes when the original intent is no longer appropriate or practical.
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Maintenance Of Principal
Unless steps are taken, the relative value of a trust will decline over a period of time. In order to
forestall such
a decline in relative value, the Community Foundation of Prince Edward Island has enacted policies which
will ensure
that part of the earnings are added to the principal each year to ensure its further growth.
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Charitable Receipts
Contribution to Funds established for charitable purposes are eligible for a receipt acceptable to the
Canada
Custom & Revenue Agency, and from the U.S. Internal Revenue Service for income tax purposes.
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Adminitration
The Community Foundation of Prince Edward Island takes care of administrative arrangements including
charitable
receipts, managing funds, issuing cheques, maintaining records, arranging an annual audit and the providing
public reports.
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Community Needs
The nature of a community foundation requires it to keep abreast of both emerging and existing needs and, as
the
undesignated endowment pool grows, so will the impact of grants. Although a relative newcomer, our role and
services
are beginning to be understood by other charitable and philanthropic organizations in our community and we
have begun to
work with the national foundations about needs, challenges and opportunities in Prince Edward Island
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