“I hear a lot about foundations and wonder who can start a foundation. What about it? » — Christiane Baril

Excellent question, because we know very little about the complex functioning of these organisms.

Let’s start at the beginning. In Quebec, there are “charities” and two types of foundations, public and private – of different structures.

To the question “Who can start a foundation?” ”, the answer is… everyone! As long as you have a little money and, ideally, a vision or a project. Depending on the amounts and the goal, the path is not the same.

First, you should know that private foundations are not quickly set up on the corner of a table, with a good idea in mind.

This requires work at the start, and well beyond since private foundations are managed by more or less independent directors – at least half of them must have a link to the foundation, often a family or even a single donor .

“It always requires a board of directors, which is accountable to the community,” explains Caroline Bergeron, head of philanthropic management studies at the faculty of continuing education at the University of Montreal.

People must account for their activities, make the necessary reports and respect charitable laws.

“It’s a lot of administration, a lot of paperwork,” says Caroline Bergeron. It can be profitable for someone who has a lot of money and who wants to capitalize their funds and use a portion of the capital. »

Several private family foundations do this.

And it is for this reason that the board of directors, even if it is linked to the founder-donor, is accountable.

As for the mandate, it can be very varied, as long as it respects the law on charities.

“It must be a non-profit organization that falls within the major sectors established by Revenue Canada,” specifies Caroline Bergeron.

There is another avenue for potential donors who have a project, but not necessarily the means that would justify the effort of creating a private foundation: endowment funds.

It’s an interesting way to support a particular objective, explains Caroline Bergeron.

“We could create a fund at the Foundation of Greater Montreal, for example,” she says, “in a community foundation. »

The process is much simpler and does not include the formation of a C.A.

Another advantage, points out Caroline Bergeron, is that it allows people to carry out a project that is close to their heart, over a defined period of time. “And they’re going to see it in their lifetime,” she said.

This process makes it possible to carry out projects with smaller amounts, even if it means handing over money by renewing the fund. This could be linked to the founding of a hospital or a university, for example, where we could create a personalized scholarship or study fund.

In all cases, the person who wants to get started must make a good assessment of their objectives and the time they want to devote to their project, which can truly become a life project. Other avenues are possible, including going it alone, accompanied by your financial planner, rather than partnering with community and public foundations.

Namely: Public foundations have charitable mandates and independent directors, while private foundations do not.