BCBusiness

FEBRUARy 2018 BCBusiness 41 GLOSSARy SOURCES: CRA + B.C. GOVERNMENT traditional fundraising with foundations and major donors," Davis recalls. One Girl Can has built •ve high schools for girls in Kenya and Uganda, with two more in the works, and oŒers scholarships to its students. Four have graduated from university. In the 2018 •scal year, there will be 110 girls on full university scholarships and 236 on high school schol- arships. The goal is to have bestowed 1,000 scholarships by 2025. To compensate for the lack of role models for Afri- can girls in rural communi- ties, every girl in grade 9 to 12 and each year of university participates in workshops and mentorship programs with successful African businesswomen. No one is to be left behind. "We don't feel that we've become successful until she's actually earning an income in a career-based job," Davis stresses. "We don't just build schools or just oŒer scholar- ships. We nurture her and make sure that every single one of the girls is successful." g i v i n g a D v i C e : Davis's sug- gestion to anyone thinking of starting a charity is to try to three categories: charitable organization, private foundation or public foundation. (See glossary below for details.) Often a public foundation will be the fundrais- ing arm of a charitable organization, explains Lana Quinn, managing partner at Vancouver's QuinnMcCauley, which helps high-net-worth clients create giving plans that reŸect their personal interests and values. Private foundations are often created by families. "It can be everything from relations to employees, but primarily it's mem- bers of a family," Quinn says. "They're all related, and they're all o¢cers. The other thing is where the money comes from. More than 50 per cent comes from those same people that make up the o¢cers of the foundation." It's a misconception that starting a private foundation requires a million dollars in the bank, she observes. Words of warning Quinn cautions that maintaining a foun- dation involves time and expense. "Once the money goes into the foundation, it's not really your money anymore," she explains. "It's the foundation's money. So CRA is pretty strict and has very strong regulations on the diligence that has to be done to maintain a foundation and char- ity." There will also be expenses for legal fees, accounting and possibly advisers. Something else to keep in mind: raising money is hard work, lawyer Rans notes. One of her clients who formed a charity to build a treatment centre has turned to funding other charities' programs instead. "It's one thing to start with $50,000, which sounds like a lot of money to most people," Rans says. "It's another thing to build something that costs $5 million." Arm's length A relationship where persons act independently of each other or are not related. Charitable organization A registered charity that mostly carries on its own activities but may also gift funds to other qualified donees and generally receives its funding from a variety of arm's-length donors. More than 50 per cent of its govern- ing officials must be at arm's length from each other. Non-prot organization An association, club or society operated exclusively for social welfare, civic improvement, pleasure, recreation or any other purpose except profit. it is not a charity and cannot issue tax receipts. Not-for-prot corporation An organization incorporated under the Canada Not-for- profit Corporations Act. Not-for-profit corporations are not automatically considered registered charities or non- profit organizations, so they may not be exempt from pay- ing regular corporate taxes. They are free to conduct the same business activities as business corporations and can make a profit. Private foundation A registered charity that carries on its own charitable activities and/or funds other qualified donees. it may have 50 per cent or more of its governing officials not at arm's length from each other, and it typically receives most of its funding from a donor or a group of donors that are not at arm's length. Public foundation This type of registered charity generally gives more than 50 per cent of its income annu- ally to other qualified donees, but it may carry out some of its own charitable activities. o n e g i r l C a n s o C i e t y Expenses ■ Charitable program $407,107 ■ Management and admin- istration $98,091 ■ Fundraising $42,044 ■ Political activities $0 ■ Gifts to other registered charities and qualified donees $0 ■ Other $12,903 TOTAL ExPEnSES: $560,145 73% 18% 8% 2% g l o s s a r y HOW TO TAlk NOT-FOr-PrOFIT pig¤yback onto another one with similar values. If you launch your own charity, she recommends running it like a business: understand market- ing and social media and who your customers are, develop good programs and policies, and know how to fundraise. "Those are the things that made us successful very quickly," Davis says. ( C o n t i n u e D o n P a g e 4 5 ) SOURCE: CRA (FOR REPORTiNG PERiOD ENDiNG AUGUST 30, 2016)

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