Frequently Asked Questions
How will MFC help me support the causes I care about?
Are there restrictions on the types of charities that can receive my funds through MFC?
What are the advantages of working with MFC rather than giving directly to a charity?
What are the advantages of working with MFC rather than establishing my own family foundation?
How does planned giving work?
What will it cost me to use MFC’s services?
What will it cost the charities I want to give to when I make my bequest through MFC?
How can I know that MFC is trustworthy and will deliver on what it promises?
How knowledgeable are MFC consultants?
How can I decide how much to give and to whom?
Can MFC help me make sure my needs are met now and my giving goals are carried out when I die?
Are there things that you can do to help me make it easier for my executors?
What does the process of donating shares look like?
Does MFC work with people like me?
Can I just prepare my will myself with a will kit from the Internet and save the legal fees?
Can MFC help me distribute my charitable estate gift over time?
What kind of estate planning documents do I need?
Can MFC prepare my documents for me?
How does MFC manage bequest gifts?
What advantages are there for making a bequest to MFC rather than to a charity directly in my will?
Could you explain how an endowment benefits my estate and the charity that receives it?
MFC is donor-advised—that means that you have a voice and lots of flexibility in the distribution of your charitable gift to MFC. Your wishes and intentions for your charitable giving are respected. MFC consultants advise you on how best to structure your donation for maximum tax savings. And we can help you find the charities that best support the causes you care about most.
Are there restrictions on the types of charities that can receive my funds through MFC?
MFC can direct funds to all registered Canadian charities, not just Mennonite-related charities. The only restrictions that MFC places on the recipients of its grants are the restrictions imposed by the government through the Canadian Income Tax Act. Other than that, your options through MFC are wide open.
What are the advantages of working with MFC rather than giving directly to a charity?
MFC is uniquely set up to receive gifts of securities, real estate, life insurance and more, which many charities are unable to accept. MFC then passes along the proceeds as your donation. MFC also offers you the option of making your gift anonymously. We can manage long-term gifts and support your favourite charity by paying out the earnings on your gift annually.
What are the advantages of working with MFC rather than establishing my own family foundation?
Setting up an endowment within MFC means you and your family do not have to bear the legal and technical responsibilities and expenses of creating a new incorporated foundation—but you still get to identify which charities will receive your support every year. For more information on the advantages of setting up an endowment through MFC, click here ...
Any gift that requires consideration of tax implications, cash flow, net worth or future planning is a planned gift. MFC’s role is to work with donors to maximize financial benefit of charitable giving with consideration for the donor’s financial well-being. MFC is also able to manage and disburse charitable gifts in a variety of ways that suit the donor’s wishes. These may include anonymous gifts, bursaries, bequest funds, and giving to multiple charities. Just as there are dangers in impulse buying, so there are risks in making all of your charitable donations based on impulse.
What will it cost me to use MFC’s services?
The bulk of MFC’s expenses, including salaries for consultants, are covered by its return on investments. MFC does not charge donors for its services. We provide general advice on estate planning and gift planning at no cost to you—although we strongly encourage charitable giving as part of the advice we give.
What will it cost the charities I want to give to when I make my bequest through MFC?
Donations made to MFC are, in turn, often distributed to other charities, but MFC keeps a small portion of the donation to further its own work in stewardship education and stewardship counselling. The amount held back varies depending on the type and the size of your gift. Some clients choose to donate additional funds to further MFC’s work and we appreciate their generosity!
How can I know that MFC is trustworthy and will deliver on what it promises?
MFC has been a donor-advised foundation since 1974, and currently has $100 million in funds under management. In 2007, we distributed $8.1 million to 500 charities across Canada. We work hard to ensure that we understand donor expectations, so that we can then follow through once the gift is received. Integrity, honesty and transparency are vital to our operation.
How knowledgeable are MFC consultants?
Consultants train in the areas of finance, tax and charitable services, and are able to provide a wide variety of options and ideas to people exploring estate and gift planning. Professional development continues on an on-going basis, to ensure knowledge is current. At present there are Certified Financial Planners, Elder Planning Counsellors and a lawyer on staff.
How can I decide how much to give and to whom?
Only you will decide how much to give and to whom, but MFC consultants are available to provide advice and guidance on what makes the most sense—both to you and to the charities or causes you want to support.
Can MFC help me make sure my needs are met now and my giving goals are carried out when I die?
Part of estate planning is ensuring that you have sufficient assets so that you enjoy the standard of living to which you are accustomed in your retirement years. There are several vehicles through which you can make charitable donations when you die—without jeopardizing your present asset base.
Are there things that you can do to help me make it easier for my executors?
Executors are sometimes frustrated that the deceased did not leave a list of assets or that the deceased expected the executor to make decisions for which the executor really is not prepared. MFC can help you to prepare a list of your assets and other information which will simplify the executor’s job—and we can help you express the values by which you would like the executor to make decisions.
What does the process of donating shares or mutual funds look like?
You or your broker should contact an MFC consultant for the appropriate paperwork to donate your publicly traded securities. But note that the donation, in order to be tax-effective, must be a donation of the shares themselves—you cannot sell the shares and then donate the sale proceeds.
Does MFC work with people like me?
MFC provides estate and gift planning services to anyone who has charitable intent, regardless of the amount or faith background. Sometimes the most creative gifts are the smaller ones—and every gift is appreciated!
Can I just prepare my will myself with a will kit from the Internet and save the legal fees?
Will planning should be done properly and efficiently. At MFC, we encourage clients to seek appropriate legal and accounting advice. If you do not seek advice and then make an error in your will, it can cost your estate much, much more to rectify that mistake than it would have cost to have a lawyer prepare a will properly in the first place. And sometimes a mistake cannot be remedied.
Can MFC help me distribute my charitable estate gift over time?
Yes. Setting up a gifting account with MFC means that you can make a donation and get the tax receipt immediately, but take up to five years to distribute that donation to your favoured charities. You can also establish an endowment with MFC, in which the capital remains untouched for at least 10 years and only the earnings are disbursed.
What kind of estate planning documents do I need?
Estate planning means making arrangements for a time when you will be unable to make your own decisions. This includes a will to distribute your assets when you die, but it also includes a Power of Attorney for Property to handle your assets during your lifetime, especially if you become mentally incapacitated, and a Power of Attorney for Personal Care to permit someone you trust to make medical decisions on your behalf if you are no longer able to do so (named by different terms in different provinces).
Can MFC prepare my documents for me?
MFC consultants will review your situation with you and once you have a plan, they will provide you with a written summary of your wishes. You may then take this summary to your lawyer to draw up the required documents. Usually this saves time at the lawyers’ offices, and may save something in legal fees as well. Legal documents are best prepared by a lawyer. MFC consultants cannot prepare these documents for you.
How does MFC manage bequest gifts?
A “bequest” is a donation made through a will. Individuals who plan to leave a bequest gift to MFC are strongly encouraged to complete a “Distribution Request” (DR) form which gives guidance to MFC for the management and distribution of the bequest. You are free to change the DR form at any time, at no cost. If you have not left any indications of your wishes, we will use the bequest for our own ministry.
What advantages are there for making a bequest to MFC rather than to a charity directly in my will?
The distribution recommendations which you make at MFC in conjunction with your will can be changed without charge at any time— but if you wish to change a charity in your will, you will likely incur additional legal costs. And if the charity you identify under your will is no longer operating when you die, a gift to that charity is void. But a bequest to MFC with your recommendation for the benefit of that charity means that we will, in consultation with your family where that is appropriate, find a similar charity to benefit from your gift.
Could you explain how an endowment benefits my estate and the charity that receives it?
An endowment is a long-term gift (minimum of 10 years under Canada’s Income Tax Act). If you establish an endowment through MFC, whether during your lifetime or at your death, you (or your estate) receive a tax-deductible receipt. MFC will invest your gift and the charity you identify will have the security of receiving the earnings of your gift every year.
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