Role of Charitable Gift Funds Canada Foundation in the funding ecosystem
Charitable Gift Funds Canada Foundation, operating under the French name Fonds de bienfaisance Canada (FBC), is a registered public foundation that specializes in donor‑advised funds. Founded in 2003 and registered with the Canada Revenue Agency and Revenu Québec, it offers individuals, families and organizations a structured way to create charitable endowments and direct grants to eligible Canadian charities.
Donors make irrevocable contributions, typically starting at a minimum of $25,000, to establish a charitable gift fund. FBC issues official charitable tax receipts, manages the invested assets in collaboration with donors’ financial advisors, and handles all administration, reporting and compliance. Donors then recommend grants from their fund to registered charities and other eligible donees across Canada, while the foundation verifies recipient eligibility and processes the disbursements.
Funding mechanisms and main fund types
FBC’s primary funding vehicle is the charitable gift fund (donor‑advised fund). The foundation offers two main program families tailored to different objectives and time horizons:
- CLASSIQUE funds, structured as traditional endowment funds designed to create a long‑term legacy. Capital is preserved over at least ten years, with an annual spendable amount typically targeted at about 4–5% of fund capital, based on accumulated net investment income.
- FLEX funds, which allow donors to align investment and payout strategies with short‑, medium‑ and long‑term granting plans. In a FLEX fund, all contributed capital may be available for grants at any time, subject to minimum administrative costs.
Across both types, FBC prudently invests assets in pre‑approved strategies offered by leading Canadian investment firms. Investment returns increase the fund’s long‑term granting capacity, and donors receive consolidated annual statements of contributions, investment activity and grants.
Grantmaking to charities and other eligible beneficiaries
FBC promotes broad, flexible grantmaking to a wide range of registered charities and other eligible beneficiaries recognized by the CRA. Donors can recommend as many grants as they wish each year, provided sufficient spendable amounts exist and each grant meets a modest minimum (e.g. $250). The foundation reviews recommendations, confirms the tax status and legitimacy of recipients, and normally issues grant payments within about two weeks.
There are clear limits to protect charitable integrity: FBC does not approve grants to individuals, political candidates or parties, or for private benefits such as membership dues, event tickets or auction purchases. Grants can, however, support a variety of charitable purposes, including operations, programs, capital projects, research, scholarships, and endowments.
Support services, governance and transparency
In addition to managing contributions and grants, FBC offers philanthropic guidance to donors and their professional advisors, helping them plan giving strategies, focus their grants and evaluate impact. The foundation is governed by an independent board of directors and a professional management team with extensive experience in philanthropy and financial services.
Each fiscal year, the foundation undergoes a professional external audit and files its annual information return with the Canada Revenue Agency. Recent audited financial statements are made publicly available, underscoring FBC’s commitment to transparency, regulatory compliance and responsible management of charitable assets.