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root stock

Introducing the Community Foundation of the South Okanagan Communities are the places where citizens develop their commitments and connections, experience a sense of belonging and first look for safety and security, leadership and services, and economic well being. Encouraging our citizens to actively contribute to the places where they live and work is crucial to building sustainable communities. The people of the Regional District of South Okanagan-Similkameen are generous contributors. Giving back is rooted deeply in our lives and people contribute in many ways: by attending charity events, sponsoring a friend or neighbour in a run or read-a-thon, donating through office campaigns, responding to mail requests or giving to a door-to-door canvasser. While all of these ways of giving help support good causes, many people are considering a more strategic and organized approach to making a difference – one that has a lasting impact on their community and allows them to achieve their personal charitable goals during, and beyond, their lifetime. Throughout the region, there is a growing interest in the establishment of legacy endowment funds and in community foundations as a forward-thinking way of supporting community needs and opportunities forever.

Community Foundations in Canada – A growing movement In communities all across Canada, community foundations have established roots and are growing legacies. Standing apart in the field of charitable giving, community foundations are dedicated to enriching the quality of community life in specific geographical areas. They are not charities supporting their own programs, nor do they compete with other agencies for funds. Rather, they pool the charitable gifts of many donors to cultivate and grow permanently endowed legacy funds that provide lasting support for local priorities. The income earned with the permanent funds is distributed to support a broad range of community agencies, while the original investment is left to continue growing over time. Reaching almost 90% of all Canadians in cities, towns and rural areas across the country, over 150 community foundations have collective assets of $2.3 billion and are among the country’s largest grantmakers, contributing $115 million to the widest possible range of community groups. Community foundations are local, responsive, flexible and trustworthy. As they are not affiliated solely with one charitable organization or cause, their focus is on what is best for the communities they serve.

It is our great pleasure to introduce you to the Community Foundation of the South Okanagan and to share our story with you.

The three principle roles of a community foundation are to: ♥ Cultivate and grow permanently endowed legacy funds which are invested wisely for the long-term benefit of the community; ♥ Share the legacies by making effective grants from the investment earnings to seed, nurture and support a broad range of community initiatives; ♥ Provide leadership in their communities by encouraging collaboration among charitable agencies, facilitating learning and convening opportunities for all.



A local Community Foundation is planted

Governance and operations

Seeds for a local community foundation were first planted in the early 1990’s by a small group of community-minded Penticton residents. Their vision for the organization, originally established as the Penticton & District Community Foundation, was to cultivate an enduring legacy that, with careful tending, would grow over time and see the quality of community life flourish well into the future.

Just as the fruit trees in Okanagan orchards require careful tending to grow sturdy and stay strong, so too does the Community Foundation of the South Okanagan.

First to place their trust in the Community Foundation were founding donors that included the Penticton Rotary Club, City of Penticton, HSBC Bank Canada and Vancouver Foundation – organizations which collectively gave $200,000. The endowment base grew and the foundation was able to give back to the community for the first time in 1994. That year, a modest $2,600 generated by the early funds was shared among six charitable agencies. Branching Out In the late 1990’s, interest in the Community Foundation grew and the mandate was expanded to encompass all communities throughout the Regional District of South Okanagan-Similkameen. Our name was changed to the Community Foundation of the South Okanagan and the constitution, bylaws and policies were re-written to acknowledge the unique identity of all communities in the region. By branching out, everyone in the region was offered the opportunity to cultivate, grow and share permanent legacies to support their own personal charitable objectives. The Community Foundation of the South Okanagan is now a living legacy, firmly rooted in the communities it serves. Since its inception, over 60 Funds have been established and, at the close of 2005, their collective value exceeded $2 million. Over $100,000 is now granted annually, enriching the quality of life in the region by supporting a broad range of charitable agencies, whose programs meet a wide variety of evolving needs and opportunities.

TD Canada Trust Logo goes on this page to recognize their generous contribution of fee office space.

A volunteer board of 12 community leaders, representing the broad public interest and diversity of the region, govern the Community Foundation. Board standing committees include investment, audit, nominations and grant-making. The board is supported in its work by a part-time executive manager. To be responsive and accountable to donors, grantees and the communities served, the Community Foundation operates under policies and practices that inspire trust and stress flexibility and inclusiveness, reflecting the clearly articulated values outlined in our vision and mission statements. High standards of accountability, transparency and stewardship are reflected in all aspects of our work, in keeping with recommendations from Community Foundations of Canada, our national membership organization. In keeping its commitment to stewardship of funds entrusted to us, the Community Foundation ensures conformance with government regulations, completes and distributes official reports, regularly reviews financial information and undertakes an annual audit. Operating costs are kept low in a variety of ways, including: generous donations from businesses and organizations participating in the ‘Friends of the Foundation’ program, endowment earnings from administrative funds, donated office space courtesy of TD Canada Trust in Penticton, proceeds from the annual Penticton Comedy Festival and a modest administration fee charged to funds under administration that is capped at one per cent.

Nurturing Assets Every donation received, whether $50 or $50,000, reflects an implicit trust in the nurturing of donated funds. We take seriously our role as steward of not just gifted funds, but of every donor’s desire to give back – forever – in the ways that matter most to them. The Community Foundation’s investment committee, comprised of a group of experts in the financial industry, monitors the endowment fund portfolio against board-approved investment policies and performance benchmarks. The activities and performance of our investment managers – HSBC Asset Management Canada and Phillips Hager North – are carefully monitored quarterly. The goal of the Community Foundation’s investment policy is to optimize total returns and maximize distributions, while protecting capital. A payout rate of 4.5% was adopted based on conservative, projected total returns and inflation rates, as well as a desire to retain a portion of the annual income earned to grow the value of funds, ensuring grants will be as relevant in the future as they are today. Cultivating Relationships When people decide to contribute, they aren’t just giving the Community Foundation of the South Okanagan donations; they are giving us their trust. Without the generosity and trust of donors, we could not fulfill our mission of enriching the quality of life in the communities we serve. Ensuring each charitable gift has the highest possible impact and helping contributors derive the most satisfaction from their generosity is what donor stewardship is all about. We are committed to promptly acknowledging all gifts, providing annual fund-holder statements and respecting donors who wish to remain anonymous. To help keep donors and the communities at large up-to-date on special events, annual grants and significant new developments, we have forged close ties with the media in the communities we serve. Our website is a valuable source of information for donors, their advisors and agencies interested in our grants program. Visit us at

How Legacy Funds keep giving and growing forever When donors establish a legacy fund with the Community Foundation of the South Okanagan, gifts are invested to generate income, a portion of which is used to make annual distributions. Remaining income is retained to grow the initial capital. This means the value of each fund continues to increase and that each year the annual grant will grow. The impact of compounding growth on an initial gift is surprising. The following table shows, that within a single lifetime, an initial donation of $50,000 invested (a named fund may be established with $5,000) with the Community Foundation can result in cumulative gifts of over $650,000 to the charities and charitable activities that are important to the donor. For illustration purposes we have assumed: ♥ A consistent 9% rate of return per year, (please note that actual rates of return in the future cannot be predicted and are not guaranteed); ♥ Expenses incurred by the Community Foundation of the South Okanagan to administer the funds will remain at approximately 1%; ♥ The amount disbursed each year from the fund will remain constant at 4.5% of the fund value at the end of the previous year. Income* 9.0% Initial Gift Year 1 Year 10 Year 20 Year 30 Year 40 Year 50 Year 60 Year 70

$ 4,500 $ 52,789 $ 127,257 $ 232,299 $ 380,471 $ 589,479 $ 884,304 $1,300,184

Disbursement* 4.5%

Year end Balance*

$ 2,250 $ 26,395 $ 63,628 $116,149 $190,236 $294,741 $442,155 $650,095

$ 50,000 $ 51,750 $ 70,528 $ 99,489 $140,337 $197,960 $279,238 $393,891 $555,623

·Please note that all amounts listed in the table are cumulative. Remarkably, in its 70th year, the fund would distribute over $24,000 and the cumulative grants from the initial capital would have been $650,095. Most importantly, the fund itself would have grown to over $555,000 and continue to provide meaningful support to the charities and causes that mean the most to the donor.

A Wide variety of choices The Community Foundation of the South Okanagan distributions program Through its distributions program, the Community Foundation of the South Okanagan is committed to supporting genuine need, by putting seed money in place to nourish opportunities and build on strengths in the communities we serve. This program is the apex of our work - the point at which donors wishes are fulfilled, not-for-profit agencies’ services are strengthened and the quality of community life is enriched. Using endowment income, thousands of dollars are distributed each year in two main ways: allocations and grants. Allocations are an amount sent to a charity in accordance with the specified terms of a donor’s fund agreement. Donors may allocate income from their fund to specific agencies, or participate in the selection of different agencies each year. The Community Foundation also distributes grants. These are discretionary and allow an independent grants advisory committee to carefully review and prioritize applications before recommending to the board which proposals should receive funding. Income to support these grants comes from an ever-growing group of endowments established by donors who wish to support the broader community and leave specific granting decisions to the Community Foundation’s Board of Directors.

Legacy Fund Types Regional and Community Funds provide maximum flexibility in responding to evolving community needs and opportunities over time. After a thorough evaluation by the grants advisory committee, grant distributions from regional and community funds are recommended to the Board for approval. Field of Interest Funds can be established by donors wishing to support a cause or general area of interest. In keeping with the donor’s chosen area of interest, the grants advisory committee researches and evaluates agency proposals and recommends grants for Board approval. Designated Funds enable donors to support one or more specific charitable agencies. Income is allocated to the agency, or group of agencies, designated in the fund agreement. Should a designated agency cease operation or significantly alter its purpose, allocations are re-directed to an agency with a purpose similar to the original one. Donor Advised Funds provide donors with the opportunity to be actively involved in distribution of income from their fund. Each year, the Community Foundation contacts these donors for advice on which agency or project meets their current charitable goals. Donor advised funds are considered an attractive, and cost effective, alternative to the establishment of a private foundation.

Scholarship and Bursary Funds are cultivated by donors wanting to help students receive education or training they might not otherwise be able to access. The recipients are chosen by school selection committees and the scholarship or bursary allocation is sent directly to the student’s chosen post-secondary institution. Agency Endowment Funds are established by charitable organizations wanting to cultivate a source of sustained income for their agency. Income is allocated back to the fund holder annually. These open funds may also be contributed to at any time, in any amount, by anyone interested in supporting the charity.

Applying for a Grant

Grants are considered with vision and care to encourage the very best in a broad range of region-wide charitable activities encompassing areas of interest such as arts and culture, social services, sports and recreation, animal welfare, education and the environment.

To be eligible for funding from the Community Foundation’s distributions program, recipient agencies must be a registered Canadian charity or qualified donee as defined by the Income Tax Act. In exceptional circumstances, a grant may be awarded to an agency, acting as a sponsor for an organization, that is not registered but wishes to carry out a charitable activity.

Together, these two types of distributions reflect the Community Foundation’s commitment to connecting people to giving in ways that matters most to them.

While the generosity of donors may be extended to any charity they choose to allocate income from their fund to, programs offered by grant applicant agencies must be located in, or benefit, a community located within the Regional District of South Okanagan-Similkameen’s geographic boundaries.

Flow Through Funds

Grant proposals that reflect fulfillment of a need in the community, impact a significant number of people, build effective community partnerships, improve organizational effectiveness and demonstrate an ability to continue the project, are encouraged.

The Community Foundation’s distribution program also includes the granting of ‘flow through’ funds. This special program for the distribution of a donation in its entirety is available to fund holders wishing to support their community through our grants’ program.

Agencies who wish to receive a copy of current funding guidelines, find out when the next grants cycle begins, or who have general inquiries about eligibility, are advised to call the executive manager at 250-493-9311. Please visit our website at and click on the ‘For Grant Seekers’ button at the top of our home page.

Tools to Grow your legacy Donors may choose to develop and grow their own legacy, naming their fund anything they wish: after themselves, a family member, a company or a valued friend. Fund names sometimes convey a specific goal or purpose, or hold special, private meaning for the donor. Others are established in memory of a loved one, or as a means for the entire family to participate in giving back to their community. With a minimum contribution of $5,000, donors can cultivate one of the following types of named funds: Community, Field of Interest, Designated, Scholarship and Bursary, or Agency fund. Donor advised funds require initiating capital of $10,000. The Community Foundation is committed to making the establishment of a named fund simple. We respond immediately to inquiries from donors or their advisors and work closely with them to create fund agreements that align closely with their charitable goals. Emerging Funds Donors who wish to start a named fund today but who are unable to contribute the minimum initiating capital may choose to start an ‘emerging fund’. An emerging fund allows donors to make an initial contribution and provide the balance over the period of time agreed upon with the Community Foundation. Income from the fund is reinvested into the fund until the minimum capital is accumulated and the fund becomes fully established. Contributing to Existing Funds Everyone can get involved in giving back to their community and help grow legacies. The Community Foundation of the South Okanagan welcomes donations in any amount to support the growth of a wide range of open funds. Every donation is important and regardless of the size of your gift, you may request it be added to a specific open fund. Upon request, the executive manager will provide a current list of open funds for donor consideration.

Common Varieties of Giving Options There are a variety of ways to grow a Community Foundation of the South Okanagan fund, whether you choose to establish your own named legacy or contribute to one of numerous open funds under administration.

Current Gifts

Deferred Gifts

Current gifts are those donors give now, during their lifetime. Some examples of current gifts are: ♥ Cash and cash equivalents ♥ Securities

Deferred gifts are those a donor makes arrangement to leave after their lifetime. Some examples of deferred gifts are: ♥ Bequests ♥ Life insurance ♥ Charitable remainder trusts ♥ Residual interest

For income tax purposes, official receipts are issued for all donations. Professional Advisors

We understand that donors plan their charitable gifts and give back to their community in the context of an overall financial plan. When considering a charitable donation, donors should be aware of each giving option’s tax implications. We recommend consulting with financial and legal advisors when considering a substantial gift, to ensure that in addition to creating a lasting legacy for the benefit of their community, donors receive the maximum tax benefit. Flexibility The Community Foundation of the South Okanagan offers donors unparalleled flexibility. Whether working with an individual, business, organization or family, we offer countless ways to fulfill donors’ charitable goals and allow them to make a lasting difference in their community. We are committed to offering the flexibility that allows donors to tailor giving programs to their unique circumstances and preferences. Donors can give to any number of charities, select from a variety of legacy fund options, chose different ways in which to make gifts and determine their own degree of personal involvement. The Community Foundation’s many ‘open funds’ allow even modest contributions to work together for the greatest impact. Our ‘closed funds’ are typically established and added to by the original donors, their family members and friends, or through ‘in memoriam’ gifts. Donors who contribute to an existing fund, or choose to cultivate their own named legacy, join people from all walks of life throughout the region who have one thing in common: the desire to give back to their community – forever!

The Community Foundation’s growing funds Large or small, the seeds for legacy funds have been planted by generous people wanting to give back to their community. Some have cultivated a legacy during their lifetime and enjoyed watching their donations in action as they give back to their community. Others have achieved their charitable objective after their lifetime. Each gift is important and will help meet evolving community needs and opportunities for generations to come. We are pleased to present the legacy funds that are currently growing with the Community Foundation of the South Okanagan. Regional Legacy Funds include: Children’s Trust Fund, Environmental Legacy Fund Community Development Funds are currently established for: Summerland, Penticton & District, Oliver and Osoyoos Named Community and Field of Interest Funds have been cultivated by: The Wood Family, Francis & Marion Kanuit, City of Penticton, Meiklejohn Family, Ina May Scott, M. Harmon, HSBC Bank Canada, 1995 BC Summer Games Legacy, 1996 BC Festival of the Arts Legacy, Rita Fawcett, Summerland Credit Union, John & Doreen Wisenden Named Designated Funds are growing thanks to: Richard & Rose Cooper, Hugh & Eva Cleland, Penticton Branch – Canadian Federation of University Women, Winkelaar Family, Marjery Punnett, Frances Harris, Bob and Frances Garland, Scott & Helen Perry, Knights of Pythias – Penticton Lodge No. 49, Pat Clarke, Allan P. Markin, Irvine & Doreen Adams Family, Marjorie MacLean, Leonard Futter, Doreen Gaunce - in memory of Allan, Ramada Inn & Suites – Penticton, 2004 BC Seniors’ Games Legacy, Trehearne Family, John Pankiw & Family

From the

Roots to the Fruit of theTree

Scientists tell us that 30% of a tree lies underground. That part is called the root: a source of strength, stability and nourishment. Strong roots mean a healthy tree with green leaves and abundant fruit for all. The roots of the Community Foundation of the South Okanagan are strong and deep within the communities we serve. The fruits of our efforts will benefit residents in communities throughout the Regional District of Okanagan-Similkameen for generations to come, far into the future. We celebrate all those who have been touched by the Community Foundation, whether as donors or grant recipients. But our story is not just about the past; it is also about what is yet to come. As more donations are received and new legacies are cultivated thanks to generous donors, we will continue to grow and prosper, enriching the quality of life in all of the communities served – today, tomorrow and forever! The Community Foundation of the South Okanagan invites you to become part of the future. Whatever your charitable goals, we would be honoured to help you shape a legacy that reflects your personal interests and your commitment to the future for your community.

Establish roots, grow a fund, share your legacy!

Named Donor Advised Funds are yielding results thanks to: Harold & Irene Myers, Business Gives Back Christmas Auction, Ron & Debbie Bell, Neil & Shirley Murray and Family, Penticton Old Timers Hockey Team, Knights of Pythias – Penticton Lodge #49, South Okanagan Similkameen Conservation Program, Tony & Judy Lloyd, South Okanagan Boundary Labour Council, Greenwood Forest Products, Penticton Auto Dealers & Friends Golf Gala, Okanagan Fest-Of-Ale Society Agency Endowment Funds entrusted to the Community Foundation include: Penticton Public Library, Penticton & District Community Arts Council, Okanagan College, South Okanagan Similkameen Brain Injury Society, Okanagan Symphony Society, South Okanagan Women In Need Society, United Way of the Central and South Okanagan, Families First Resource Society, South Okanagan Secondary School Enrichment Fund Society, Friends of the Summerland Research Gardens Society, The Land Conservancy – Okanagan Region


and growing forever


Community Foundations in Canada – A growing movement Introducing the Community Foundation of the South Okanagan Throughout the region, there...

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