SOLUTIONS

A Provident Donor Advised Fund (DAF) offers a simple, flexible, and tax-efficient way to manage your charitable giving without the complexity of establishing a private foundation.

• Simple to Establish – Open a Donor Advised Fund by completing a straightforward application—no legal professionals or complex setup required.
• Personalized – Name your fund in a way that reflects your family, honours a loved one, or supports a cause that is meaningful to you.
• No Start-Up Costs – Unlike a private foundation, there are no legal, accounting, or formation costs to establish your fund.
• Administrative Simplicity – Provident manages all administration, investment oversight, record keeping, and charitable reporting, eliminating the need for additional tax filings or accounting.
• Confidential Giving – Your fund and charitable contributions remain private unless you choose otherwise.
• Anonymous Grants – Support charities anonymously while still directing where your gifts are distributed.
• Flexible Giving – Donate cash, appreciated securities, or other eligible assets, and recommend grants to one or multiple charities over time.
• Immediate Tax Benefits – Receive a charitable tax receipt when your gift is made, while taking the time to decide when and where your grants will be distributed.

• Advisory Role – As with all donor-advised funds, grant recommendations are made by the donor, while final approval rests with Provident's Board of Directors to ensure compliance with Canadian charitable law.
• Ongoing Administration Fee – A modest annual fee supports investment management, administration, compliance, and reporting, and is generally significantly lower than the cost of operating a private foundation.
• Irrevocable Contributions – Charitable gifts made to a Donor Advised Fund are irrevocable and cannot be returned to the donor, consistent with Canadian charitable giving requirements.

Publicly traded shares, mutual funds and other eligible securities can often be donated directly to Provident instead of being sold first. When securities are transferred in kind, the capital gain that would normally be triggered on sale may be eliminated, while the donor receives a charitable receipt for the fair market value of the gift.

• Work with your financial advisor or account holder to arrange a direct transfer.
• Send Provident a Letter of Direction so the proceeds can be distributed according to your charitable wishes.
• Provident can distribute the gift to your chosen charities and can include your contact information or keep the gift anonymous.

A charitable gift in your Will allows you to support the charities and ministries that matter to you while keeping use of your assets during your lifetime. You may leave a fixed amount, a percentage of your estate, or a residual gift after family and other commitments have been provided for.

• Name Provident Foundation in your Will as the charitable recipient.
• Use a Letter of Direction to recommend how Provident should distribute the gift after it is received.
• Review the plan with your lawyer, executor and advisors so your charitable wishes are clear.

Life insurance can create a meaningful future gift without requiring the same amount of cash today. Depending on your goals, Provident may be named as a beneficiary of a policy, or ownership of an existing or new policy may be transferred as part of a planned giving strategy.

• Naming Provident as beneficiary can provide a future estate gift while keeping the policy under your control during life.
• Transferring ownership of a policy may allow donation receipts for eligible policy value or future premiums.
• Your advisor can help determine which insurance approach best fits your family, estate and tax planning needs.

The "extra child" concept treats charity as one additional beneficiary in your estate plan. For example, instead of dividing your estate only among your children, your Will can divide it among your children plus one charitable share.

• This approach can create a significant charitable legacy while still caring for family.
• Provident can be named as the charitable beneficiary, with a Letter of Direction describing the charities you want supported.
• The charitable receipt to the estate may also help offset taxes, depending on the estate's circumstances.

RRSPs and RRIFs can become taxable income in the year of death unless they transfer to a surviving spouse or another qualifying beneficiary. Naming Provident as a beneficiary can turn those registered assets into a charitable gift and may help offset the tax created by the final disposition.

• Name Provident Foundation as primary beneficiary if you wish to donate the account, or as contingent beneficiary if a spouse is currently first in line.
• Complete a Letter of Direction or Legacy Fund application so Provident knows how you want the gift distributed.
• Let your family, executor and financial advisor know about the beneficiary designation and charitable plan.