Advocis Succession Planning for your Business

Succession

Planning for your Business

D ec emb er 2 012 P r o m o t i o n a l

S u pp l e m e n t

This insert provides valuable information to business owners in the Greater Vancouver Area and has been sponsored by the Vancouver Foundation and the Vancouver Fraser Valley Chapter of Advocis

It’s easy to get into business… harder to get out A

s baby-boomer business owners retire, there will be a massive shift of assets between generations. Why is it then, that so few business owners have succession plans or exit strategies in place?

To quote Franklin Taft (President and Treasurer of Industrial Mutual Insurance Co) maybe it is because “I’m too busy working in my business to think about how to leave it. Besides, I don’t know what to do and neither do my advisors.”

As a specialist in Estate and Succession Planning, I have personally spent a considerable amount of time researching this issue. Some of what I will share with you below is my own personal thoughts and comments as well as some insight and information I have gleaned from other professionals in this field.

Apart from feeling overwhelmed and too busy to deal with this issue, it seems that a significant barrier to the successful transfer of ownership of a business is the emotional unwillingness to consider what the future means and the belief that formulating and exit strategy can wait.

Succession planning and planning an exit strategy require two completely different mindsets. Many business owners are just not sure how to get started or where. Succession planning primarily focuses on the transfer of the leadership and/or management of the business from one generation to the next. It is essentially an approach to business continuity, which in turn is a critical component of an exit strategy.

Exit planning on the other hand is a comprehensive analysis of all of the factors that impact the business owner – while succession planning is a key component, it also deals with a variety of other issues that might be important to you, such as current and future planning with respect to your personal financial stability and possibly that of your family, the business itself, its value, employees, position in the market. You may also want to consider what if any impact your business has

Mark Schulhof CLU, Ch.F.C. CFP, RHU

or you would like it to have on your community.

Therefore, succession planning and planning an exit strategy work hand in hand. Succession planning ensures the longevity of the business and an exit strategy ensures that the other important and sometimes comprehensive factors that are personally important to you, your family and your community are also adequately and appropriately addressed.

It is important for the business owner to work in conjunction with trained succession and exit planning specialists to ensure that all of your needs and wishes are addressed and can be executed in the way you want. These trained professionals will work with you and will take the time to get to know you - they will document the process every step of the way and will ensure that you have full input into every aspect of the planning. Once a plan is in place, they will continue to maintain and monitor your plan to ensure its continued success.

Planning your exit from your business should also form an integral part of your estate and retirement plan. Planning and implementing your various strategies will enable you to transfer your business to your family, your employees or an outside

2 | Advocis Charitable giving and business succession planning

buyer; and provide you with retirement income. It also affords you the opportunity to contribute to your favourite charities or community initiatives, maximize your financial return and minimize your tax liability.

Having proper plans in place will ensure that you get the best you can out of your business for yourself and your family, whether that be now or after your retirement or at disability or death.

The transition to exiting your business in a timely fashion and in the manner of your choice should not be seen as an event but more as a process - this can be best achieved by having a team of qualified professionals work alongside you. Proper planning provides an opportunity to protect all that you have worked hard for and allows you to pass that legacy on to your loved ones when you want, and in the way you want.

As there are many elements and factors to consider, it is our hope that through this insert and the articles contributed by experts in the various specialized fields, you will realize the benefit of having designated and qualified professionals as part of your planning team. We all know that the best decisions are ‘informed decisions’ and these designated professionals whether they be accountants, financial/gift planners, insurance planners, lawyers or trust officers, have the skills to guide you through this process and help formulate, execute and maintain and a worry free exit and succession plan.

Remember….This is a Team Effort and every team needs some ‘Key’ Players!!

In closing, I would like thank Chris Wilson, Kerry MacDonald and the entire Advertising Team at Business in Vancouver.

Their help and support as always plays a significant role in the production and distribution of this insert to all of you.

Mark Schulhof CLU, Ch,F.C. RHU,CFP CEO Cara Financial Inc.

2012

Message from the president A

s business owners we are all facing a challenging year ahead. With the uncertainty of the markets and the changing provincial sales tax issue the one constant challenge that you can prepare for is your succession and estate planning. I know that many of you have felt the pain of a family member or a friend in need and want to help in some way but may not have a charity of choice or know where to look. I hope you take some time to read the information in this publication, I am sure the content will help you create action plans to address your business planning needs and give you some insight into the value of charitable giving.

As most of us sit down over the holidays and make plans for 2013, I would encourage you to add meeting with a Financial Advisor to your to do list. The professionals you see in this publication and those that are members of Advocis can help you develop a plan that will not

Vince McKay, Essential Financial Services

only help your business but also your family and a charity in need.

These professionals are dedicated to helping you maximize your personal value and minimize tax.

Advocis is The Financial Advisors Association of Canada and the largest association of its kind in Canada with more than 11,000 members. Advocis members have various specialties

Inside Family Business Transition – The Why 4 including comprehensive financial and retirement planning, finance and wealth management, business succession, estate and tax planning, risk management, and employee benefits planning.

Our members are Professional Financial Advisors who adhere to an established professional Code of Conduct, uphold standards of best practice, participate in ongoing continuing education programs, and maintain appropriate levels of professional liability insurance and are committed to putting their client’s interests first.

Thanks for you time and I hope the articles in this publication help you attain your goals going forward.

Our Charitable Alliance

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Creating the Success in Succession Planning

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Every family’s business –Always be prepared!

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Insurance Trusts

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Doing well by doing good 10 Women: No longer a hidden market

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Corporate tax planning – the value of life insurance 12 At the end of the rainbow 13 What do the designations mean?

14 What Is A Will?

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Directory of contributors 23

Funding more cancer research in BC than any other charitable organization.

Platinum sponsor:

Gold sponsors:

As the fundraising partner of the BC Cancer Agency and the largest charitable funder of cancer research in this province, our donors contribute to leading-edge research that has a direct impact on improvements to cancer care for patients in British Columbia.

Silver sponsors:

This year, we are proud to be recongized by Charity Intelligence Canada as a CI Top Pick Charity for 2012.

Advocis wishes to thank the Vancouver Foundation for its generous support of this supplement, in addition to its ongoing sponsors.

Learn more at www.bccancerfoundation.com.

Charitable giving and business succession planning Advocis | 3

Family Business Transition – The Why What’s really important?

“

Having a common goal for the future is energizing, and a successful succession plan should inspire the next generation of business owners”

By Rob Radloff and Neil Harker.

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n order to help facilitate a successful transfer of ownership for family businesses, many advisors adhere to strict technical, financial, and legal structures that govern succession planning.

However, in order to develop and implement a strong, personalized plan, advisors must also understand the goals of all involved in the transfer—they must understand the “why” behind the succession plan.

Family. Wealth. harmony.

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4 | Advocis Charitable giving and business succession planning

In order to determine the “why,” an advisor needs to recognize, and remain sensitive to, the interpersonal relationships relevant to the family business. Each family business has unique assets, as well as challenges and personalities that need to be taken into consideration.

For example, it’s quite common for family members to make assumptions regarding the transition of management, and this can easily lead to personal conflicts. For that reason, it’s important to establish strong communication channels between the business owner and their immediate family.

This maximizes the potential for a successful transition, and minimizes misunderstandings. It can also help quell any suspicions surrounding favouritism or opportunism between family members.

A communications strategy may seem like an obvious requirement for a succession plan, but it is often neglected or overlooked.

As part of the communications strategy, an advisor should work with family members to help determine what role they each want to play post-transition, or more importantly, what role they’re best suited to play. Personality profiling systems can be helpful to assess each person’s strengths and interests in relation to the business.

This process can also help create realistic expectations about the succession, especially regarding management roles.

The next step is a clear, mutually agreed upon delineation of duties and responsibilities. This is an important part of ensuring the business’ future viability, and allows family members to fully contribute to the overall, long-term success of the organization.

Having a common goal, and understanding what role each member plays in achieving this goal will facilitate an ease in owner transfer, and strengthen the business’ overall vision and culture.

Having a common goal for the future is energizing, and a successful succession plan should inspire the next generation of business owners and meet the needs of all concerned—throughout the transition process, as well as after the transfer of ownership is complete.

Understanding the “why” behind a succession plan will ensure a unified, transparent, and supportive transition process. Once this question has been answered for all involved in the succession, an advisor can help create and implement a strategy that is reflective of their vision and help ensure a vibrant, long-term business legacy.

Rob Radloff is a Chartered Accountant and a Financial and Estate Specialist with Covenant Family Wealth Advisors; Neil Harker is a Family Transition Specialist with the Covenant Family Wealth Advisors.

2012

Our Charitable Alliance: Working together to make the world a better place himself. Potentially, he risked someone calling the cops or pushing his hand away.

This is the essence of a charitable heart... putting others before yourself, not being concerned about what others might think, and giving what you can; in this case a gift of time and spirit.

By Franco Caligiuri and Larry Amstutz Franco: It was a typical Toronto winter day, icy and frigid cold, however I was actually in Vancouver! I couldn’t believe that I was unprepared for the weather.

Wearing my dress shoes I was desperately trying to walk up a slight incline at the Vancouver Convention Centre. Finally I realized I couldn’t move another step without falling and causing grave injury and terrible embarrassment to myself. I simply clung onto a railing hoping that someone would help me out. Instead I found dozens of business people (obviously much better prepared for the weather) blowing right past me, eyes averted or glued to their iPhones.

It was a very humbling position to be totally helpless and at a loss for what to do. The next thing I knew, I felt a hand on my arm and I looked down at a tattered, dirty, glove with no fingertips. I looked into the eyes of a stranger holding my arm who simply guided me up the ramp until I was able to walk on my own again. It gave me pause for thought to realize that the first person who took the time to provide a helping hand was someone in our society who most needed the help

Larry: I wish you could have known my father, Peter. He was a fun, loving, and generous man. Sadly we lost him in March 2011 from a combination of lung cancer and prolonged heart disease. My dad would have given you the last $20 in his pocket if you said you were in need. No strings attached.

I believe this is the cornerstone to my own philanthropic interests and activities today.

After my brother survived lymphoma at 25 my dad gave every year to the fight against cancer. When later my brother was injured in an industrial accident, he also donated regularly to the Burn Fund. The two core reasons that Canadians give charitably is that they have been touched personally or that they want to make a difference in their communities. Everyday I help people who have an interest in charitable giving find the best way to maximize the impact of their charitable gift. Sometimes it is by giving a gift through their Will, sometimes it is donating a life insurance policy which can potentially quadruple the size of their gift, and sometimes it is simply changing the beneficiary of their RRSP or RRIF to a charity. There is a truism that our parents get smarter as we get older. Well, I am getting older and I appreciate that my dad was a smart and generous man.

Our Charitable Partnership Franco and I have seen first hand the benefits and rewards of giving. We know we are not alone, as Statistics Canada reports that about 85% of adult Canadians give charitably annually.

It seems such a natural alliance between us.

We both have a passion to make a difference in our communities and to actively engage people in conversation about their charitable interests. But like any other quality relationship we consistently work at it. He recognizes the value of adding the specialized expertise of a Planned Giving Officer to his business platform to enhance the experience and opportunities for his clients. My support is given as a charitable giving specialist no matter what the cause of interest is to his clients; whether it be faith based, the environment, or a health related cause like supporting the fight against cancer.

If you have the desire to leave a legacy, pass your values down to future generations, and really make a difference, then we would both encourage you to contact either one of us to learn more about creating your own charitable alliance with a Planned Giving Officer and to add charitable giving as an active component to your business platform.

Franco Caligiuri President, Capital Core Financial franco@capitalcorefinancial.com (604) 685-6525 ext 4 Larry Amstutz Planned Giving Officer, Canadian Cancer Society, BC & Yukon lamstutz@bc.cancer.ca (604) 675-7351

Join the fight. Leave a legacy.

Did you know that a legacy gift to the Canadian Cancer Society can fight cancer and protect your estate from tax?

For your free copy of the Estate Tax Eliminator Clause and Will Planning Guide, contact Toni Andreola at tandreola@bc.cancer.ca or 1 800 663-2524, ext 7112.

cancer.ca 2012

Charitable giving and business succession planning Advocis | 5

Creating the Success in Succession Planning Malcolm Ross CFP,CLU,TEP President Investaflex Financial Group

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uccession planning is challenging for business owners because of the multiple layers of complexity that are involved in developing an effective succession plan.

Understanding who is going to be entitled to benefit from ownership, and who will have the responsibility of managing and how they will be compensated is complex. This is true whether there is an active business involved or the family wealth is comprised of real estate holdings and portfolio investments. Impacting these are the taxation and the liquidity considerations of separating the family members’ interests if they are no longer able to cooperate and share common goals. The Family Firm Institute, which is the international body established over 25 years ago to develop the body of knowledge in the field of advising business families, recognizes that there are four broad areas that need to be considered within succession planning including tax and legal matters, management and leadership, finance and liquidity, and family dynamics. It is also important to recognize that succession is a process or a journey rather than an event and it is appropriate to have this process facilitated by professionals.

Effective succession planning therefore starts with understanding the family members, their life goals and objectives, any common vision and purpose that they share, and the relational dynamics that will impact the decision-making processes within the family.

Once this understanding exists then it will be possible to develop appropriate ownership and tax structures to accommodate the family goals and objectives. Within the structures it will then be possible to objectively develop liquidity and exit strategies when the objectives of the family members diverge.

Due to the differing interests of each of the family members it is extremely helpful to have a common understanding of the issues which impact the planning and of

the possible solutions available to address them. Since ownership and tax structures are inherently complex it is important to develop a common communication language which allows all of the family members and all of the advisors to collaborate effectively. The Investaflex structure diagram methodology creates a graphic communications tool which allows family members and advisors to share information and develop a common understanding. Visual communication tools supported by detailed numerical analysis allows each family member to fully understand the consequence of each planning decision and therefore make informed decisions.

In 2005 Investaflex Financial Group was the first Canadian company to offer a virtual multi-family office system. While the traditional family office structure is the preserve of the ultra-wealthy, and emerging multifamily office structures in Canada and the US are primarily built around portfolio asset management, the Investaflex Virtual Family Office (VFO) was developed to facilitate collaboration between clients and their trusted advisors with a clear focus on addressing the planning needs of the business owner and his or her family. The VFO is a dedicated and secure internet portal which is shared by the clients and their chosen advisors including their accountant, lawyer, management consultant and financial advisors. The VFO is a repository

6 | Advocis Charitable giving and business succession planning

that ensures all advisors are working with the same information with a common definition of the project and are focused on the client’s needs. By working with the trusted advisors and creating a common language to enhance understanding the Investaflex process empowers business owners and their families to make informed decisions. Most often the differing perspectives of each professional enhances and refines the recommendations so that the whole is greater than the sum of its parts.

Investaflex Financial Group is the only advisory firm in British Columbia that has twice been recognized by the Advisors Edge Advisor of the Year Awards for planning excellence.

Through an industry-leading planning process, their visual communication tools and supported by proprietary tax analysis tools the Investaflex Team are able to work with your existing trusted advisors and a wide network of local experts through the virtual office system to ensure that you receive a plan specifically designed to optimize your family wealth.

Malcolm Ross B.Com., CFP, CLU, TEP, CFBA was the Advisors Edge Advisor of the year in 2002 and is a Family Firm Institute Certified Family Business Advisor, a CAFÉ trained Family Council and Board Facilitator, and a Registered Trust and Estate Practitioner with over 20 years of advising BC business owners and their families.

2012

Every family’s business –Always be prepared!

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recent CIBC world markets report disclosed that 40% of business owners of small to medium sized businesses in British Columbia are planning to retire within the next five years. This is significantly above the national average of 28%. What is particularly disturbing is that almost 60% of these business owners have no meaningful business succession plan.

According to the report while succession planning is the norm for large corporations, for small and mid-sized companies it is an overwhelming issue that is too often dealt with only in emergency situations such as death or illness of an owner/partner or when new partnership is needed following a cash flow crisis. Since we cannot predict these events the failure to plan for succession results in significant erosion of the business value.

For most business owners there are three major options that they consider when developing their succession plan. The first of these is a transition to family members, the second is the sale to employees or the management team, and the third is a sale to a third party. Whichever method, the actual transition of management and ownership control is often the most difficult decision the business owner has to make because of the impact on the financial security of his/her family and the families of employees, many of whom share a significant relationship with the founder and the company. Often the value of the business in the eyes of the business owner is significantly greater than it would be if he/she was not the owner of the business but was looking to purchase that business.

Most business owners will only ever sell one

business and as a result of that will not have the experience of the common tax, legal and financing pitfalls that will significantly impact the value that they will realize on the business sale.

Understanding the value of the business in the open market, ensuring the appropriate blend of financing, putting in place appropriate tax structures and obtaining expert legal advice are essential to being objective and maximizing the value on sale.

Ensuring that there is proper management, appropriate business processes and a team of people capable of running the business without the owner will enhance the attractiveness of the business to potential buyers. Always be prepared!

In order to help educate business owners about the importance of each of these elements in laying down the foundation for a successful business succession plan a group of advisers has come together to bring to Vancouver on January 24, 2013 Thomas

William Deans PhD international speaker and author of the number 1 best-selling book on protecting family wealth – “Every Family’s Business”.

The group includes Axel Christiansen (Managing Director of BDC Subordinated Finance), Malcolm Ross (President of Investaflex Financial Group and 2002 Advisors Edge Advisor of the Year), Don Sihota (lawyer and Partner at Clark Wilson LLP), and Mark Wardell (management consultant and President of Wardell Professional Development Inc.). The group brings together over 100 years of professional experience working in the areas of business finance, management consulting, tax and legal planning, and family business advising.

Seminar Event Delta Casino Hotel Burnaby from 8.00am to Noon on January 24, 2013 Speakers: Thomas Deans Axel Christiansen Malcolm Ross Don Sihota Mark Wardell Cost $285

Axel Christiansen MBA,CFA Managing Director BDC Subordinate Financing 604 666-7875 2012

Malcolm Ross CFP,CLU,TEP President Investaflex Financial Group 604 331-2520

Don Sihota LLB Partner, Clark Wilson LLP 604 643-3123

Mark Wardell President Wardell Professional Development 604 733-4489

Includes a copy of Deans’ book, and a one-hour complementary consultation with each of the local experts and a free 90 day trial of the Virtual Family Office.

Seating is limited for this exclusive event.

Call 604-331-2520 to Register

Charitable giving and business succession planning Advocis | 7

Insurance Trusts

Rick Montens, TEP Partner Richards Buell Sutton

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f a person already has life insurance in place, consideration should be given as to whether the proceeds may be structured in an insurance trust, to provide more advantageous ongoing results for the surviving family members.

An insurance trust is a trust funded by insurance proceeds. Instead of making a spouse or children the direct beneficiaries of an insurance policy, a person could instead direct these proceeds to a trust, which would list the spouse or children as the beneficiaries.

The Insurance Act in British Columbia permits an insured to appoint a trustee for a beneficiary, via a “declaration”. Such an “Insurance Declaration” is essentially a detailed insurance beneficiary designation, which can be utilized to create separate trusts to deal with the insurance proceeds.

Insurance Declarations provide the same benefits of insurance generally, such as avoiding the probate process for the funds (thereby saving expenses and fees), and offering privacy. In addition however, trusts created by Insurance Declarations will be seen as “testamentary trusts” (so long as the deceased was the sole owner and life insured of the policy). Testamentary trust planning provides the following benefits for the

insurance proceeds: 1. asset protection, as these assets are not directly owned by any of the beneficiaries; 2. income splitting, as the income produced by these assets can be taxed separately and apart from the income and salaries of the beneficiaries, or allocated to the beneficiaries who earn less income, thereby resulting in less tax payable overall; and 3. control and flexibility, as the main beneficiaries (i.e. spouse or children) can be appointed as the trustees.

Consider the hypothetical Donald, who is married to Donna, and who has three infant children with Donna. Donald has a $500,000 life insurance policy. If Donald were to designate his spouse as the direct beneficiary, Donna would receive the funds free of income tax and probate fees upon Donald’s death.

However, the extra income earned every year from the proceeds would be added to Donna’s income and increase her taxes, and the proceeds would be available to be executed upon by any of Donna’s creditors.

Instead of designating Donna directly, Donald could utilize an Insurance Declaration and set up an insurance trust to receive the proceeds. These funds would still be received free of income tax and probate fees by the Insurance Trust, just as before. As well, since Donna would be the trustee, she would still have the same control as owning the funds outright. However, these funds would now be out or reach of any third party creditors of Donna, and so would always be available for Donna and the children. Furthermore, Donna and her children would all be current beneficiaries, to provide for more efficient

8 | Advocis Charitable giving and business succession planning

splitting of income for tax purposes among the whole family class. Donna would be able to allocate the income generated by the proceeds at her discretion among the trust, herself, and her children, to achieve the best tax result possible every year. Finally, upon Donna’s death, the insurance trust would provide for an alternate trustee, and the remaining funds would all flow to Donald’s children, again avoiding Donna’s estate and any probate fees at that time.

Still a further advantage can be seen for Donald, if we assume that, due to Donald’s mortgage and other liabilities, Donald’s net worth is negative. Donald wants to ensure that a specific value of funds ends up in a trust for Donna and his children. By using an insurance trust, Donald could now rest assured that the face value of his insurance would bypass his estate and any probate fees and creditors, and be placed intact in a trust for his family. There would be no surprise payments or liabilities that would reduce the available insurance proceeds. In such circumstances, an insurance trust could end up having more financial importance for Donald’s family than his Will.

Insurance trusts are generally underutilized in estate planning, and offer very interesting opportunities. We recommend that their use be explored in estate planning.

Rick Montens is a partner with BC’s Oldest Law Firm - Richards Buell Sutton LLP. He is the leader of the firm’s Wealth Preservation Department, specifically dealing with Estate & Trust Administration and Personal Estate Planning. Rick can be reached at 604.661.9245 or rmontens@rbs.ca.

2012

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11/28/2012 1:13:55 PM

Doing well by doing good Tax-effective strategies for building your charitable legacy called Bulembu. when you are ready to make those decisions.

Bulembu currently cares for 250 children between ■ The convenience and flexibility of a PGF account the ages of four weeks and 18 years who have been allows you to make substantial contributions to orphaned as a result of losing their parents (mostly your account in profitable years and to sustain a John Nicola, to AIDS). While Bulembu is building long-term similar level of giving to your favourite charities in CLU, CHFC, CFP infrastructure to make itself sustainable financially, leaner times.

Chairman & CEO, Nicola it will need support for at least a decade to achieve ■ Donations can be made in cash or in kind.

Wealth Management those goals.

In-kind donations include mutual funds, stocks, Joan annually commits $5,000 to Bulembu and shares of private corporations, bonds, real estate another $5,000 to other charitable organizations. property, etc.

Each year, Joan receives tax credits for her generosity ■ Any potential asset growth in the PGF account any of you are committed to supporting that amount to approximately $4,400. She has also accumulates tax-free, offering the potential for a number of charities each year. You have changed her will to leave special bequests to all of her greater charitable grants in the future. spent a good deal of time understanding their ■ Contributions provide tax savings up front objectives and learning their needs. Your support charities totalling $200,000.

We are Joan’s financial advisers and wealth that amount to a tax deduction of approximately makes it possible for them to accomplish the great managers. In a recent meeting with her, I suggested 43.7%! work that they do. she consider establishing a donor advised account.

In Joan’s case, I suggested we do the following However, “It takes two to tango.”

First I described the steps and then went over the to create her legacy donor advised fund: Have you thought about the prospective 1. Transfer $200,000 from her non-registered buyer’s needs? If you haven’t, it’s likely that all your benefits to both her and her charities.

A Donor Advised Account is an account investment accounts to her new donor advised planning is moot. established within a foundation to which one can account within PGF (the Dr. Joan Smith Fund).

What will happen to that support when you 2. Over the past 10 years, Joan’s balanced portfolio are no longer here? Will you arrange to leave part contribute capital. The account is held in the name of the donor and or their estate, and the contributed has averaged a return of just over 7% per year. of your estate to those same charities through I suggested she plan on withdrawing 5% per your will? If so, what part? Will the money be used capital is invested in a way that generates sufficient year ($10,000/yr) and hope for growth in the wisely? Will it create a legacy that can continue to annual income to meet its objectives for annual giving and ideally grows the capital over time. portfolio over time, allowing her to increase her give long after you are gone to help ensure the In 2003, Nicola Wealth Management created the annual distributions, as well. sustainability of the organizations you want to NWM Private Giving Foundation (PGF) as a public 3. Joan could save up to almost $88,000 in tax this support? foundation to facilitate our clients’ charitable giving. year for establishing this account.

We believe that for many generous donors, there is a better way to give that accomplishes the As part of our commitment to encourage our clients’ 4. She can add to the capital of her account increase in their own level of “social capital,” we pay whenever she wishes. This, in turn, will increase following: 100% of all administrative costs for PGF. the funds’ ability to make gifts while continuing ■ a permanent endowment fund that can to be a very attractive tax strategy for Joan. support your favourite charities indefinitely; Benefits of a Donor Advised Account 5. Joan directs how much of her account is ■ higher tax deductions today; and ■ As a donor, you do not have to decide immediately distributed each year and to which charities.

■ the ability to change one’s mind about which on a particular charity in order to obtain a tax receipt.

If you believe creating a permanent legacy is a charities to support and to what level.

With a PGF account, you obtain an immediate tax great way to support your favourite charities, then What is this structure? It is called a Donor deduction for your charitable contribution and consider using a donor advised fund now.

Advised Account. Below is a brief case study that recommend grants to qualified charities at a later time You’ll do well by doing good. ◊ illustrates how these creative structures work to build a permanent charitable legacy for donors.

Joan Smith is a successful cardiologist who has “ The value of a man resides in what he gives and not in what always been generous in supporting a number of worthy causes. One of her favourite charities is he is capable of receiving” - Albert Einstein an AIDS orphanage in a small village in Swaziland

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Nicola Wealth Management is more than a financial planning firm. www.nicolawealth.com/the-client-experience Vancouver: Head Office: 5th Floor - 1508 West Broadway, Vancouver, BC V6J 1W8 T: 604.739.6450 Kelowna: Landmark III Suite 520 - 1632 Dickson Avenue, Kelowna, BC V1Y 7T2 T: 250.763.9757

10 | Advocis Charitable giving and business succession planning

2012

Women: No longer a hidden market So why aren’t they the focus of financial planning by financial advisors?

Mia K. Chang Regional Sales Director and Lawrence Chandler Marketing Communications Desjardins Financial Security

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The purchasing power of women extends to all areas, with wives, mothers and singles in control of most of the purchases for themselves, their parents and their families.”

— Mike Aziz, vice president of sales at Desjardins Financial Security

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t’s tough to overcome inertia. For more than a century the financial services industry has focused on men as the primary target for individual insurance and retirement savings. Yet clearly the tide has changed but many have not seen the reality around us: Women have become the dominant economic force in our society.

The economy This past June at the Distributor’s Summit, Mike Aziz, vice president of sales at Desjardins Financial Security said, “The purchasing power of women extends to all areas, with wives, mothers and singles in control of most of the purchases for themselves, their parents and their families.” In fact, women influence: • 91% of home purchases • 80% of health spending • 90% of financial decisions Overall, it is reported that Canadian women control 67.2% of all household spending, according to a study by the Boston Consulting Group. That’s a lot of purchasing power in our economy.

Leadership It’s a given in Canada that our leaders will be well educated and successful. And, it was once a given that these potential leaders would be men. However, a Statistics Canada report from 2007 stated that 61.5% of undergraduate degrees and 54.6% of master’s degrees are held by women.

Also, the number of women enrolling into

medical faculties has increased from 14.3% in 1969 to 57.7% in 2011. (Source: 2011 Office of Research and Information Services of AFMC) All professional occupations have also seen great increases in — and will likely be dominated by —women. In the years ahead, we should expect to see more women emerge as the CEOs of many large companies and radically change the business culture in Canada. A perfect example of that is Monique F. Leroux, Chair of the Board, President and CEO Desjardins Group.

Your practice – your company In The Female Economy, presented in the Harvard Business Review, the authors stated: “Financial services wins the prize as the industry least sympathetic to women – and one in which companies stand to gain the most if they can change their approach.” (Michael J, Silverstein and Kate Sayre, The Female Economy) Those are strong words that we all should take to heart, and I’m sure that we’re up to the challenge. A friend of mine defines a Financial Services Advisor as an enabler of change. That seems to fit well in this case.

Clearly, a reorientation must take place within our industry. Some things we have identified include: Women respond to sales approaches

Woman want to be proactive in creating a financial safety net for their loved ones; they will look to the advisor for a solution 2012

that they identify with. For example, • Place an emphasis on the human aspects of the client’s needs rather than only the financial needs • Focus on real life stories to put it into context – an emotional story will have a stronger impact than statistics • Recognize that women are more plugged into health issues and more likely to listen to advice on this topic Women recognize that they are more likely to be the primary caregiver and key to the sandwich generation, so they have an affinity towards solutions that will help them Woman want to be proactive in creating a financial safety net for their loved ones; they will look to the advisor for a solution that will provide security and support to their loved ones if they should become seriously ill Many individual health insurance products like critical illness insurance have been spare by the rounds of premium rate increases of the past few years. This means that relatively speaking they are more affordable than in the past, are favoured by manufacturers and often ideal for the women’s market.

At DFS, we have understood that there is a tremendous opportunity in developing initiatives and tools to better serve the needs of women. Have you considered: • Focusing your practice adapting your sales strategies more on the women’s market?

• Providing more support to developing the careers of women employees and advisors within your office?

• Recruiting more women as advisors because women already get it – it is their natural market?

Charitable giving and business succession planning Advocis | 11

Corporate tax planning – the value of life insurance Brenda McEachern, BComm LLB TEP Estate and Tax Consultant Canada Life

M

any entrepreneurs and professionals earn large incomes through their corporation. They have choices whether to take salary or dividends to pay for their annual lifestyle needs. They have choices how best to accumulate retirement savings – inside their corporation or outside – in an RRSP or in a nonregistered portfolio. They have choices how and in what order to convert their assets into income in retirement.

One of the major advantages of incorporation is the ability to defer tax on annual income. The first $500K of taxable active business income is taxed at 13.5% and active income over $500K is taxed at 25%. Compared to earning this same income personally at 43.7%, this represents a deferral of 30% and 18% respectively, so long as the funds remain in the corporation. That extra cash flow can be put to good use creating a retirement nest egg.

It is important to manage the accumulating corporate retained earnings efficiently to minimize the tax payable on annual portfolio income. This can be done by investing in capital appreciating assets and by depositing funds into a tax sheltered insurance portfolio.

So long as the funds remain in the insurance portfolio, the annual growth is tax exempt.

This too has a significant impact on the ultimate size of the retirement fund.

Next step is to access the retirement fund in the most tax efficient manner. The corporation will likely have accumulated special tax accounts that can be applied to reduce the effective tax rate (CDA, RDTOH, GRIP). The corporation can distribute these tax efficient dividends to the shareholders.

Finally, the entrepreneur or professional will want to ensure that the corporate value passes to the next generation with as little estate tax and probate fees as possible. To the extent that the corporation owns insurance, the capital dividend account created by the insurance proceeds can pass from the corporation to the estate tax free.

Corporate Owned Insurance Participating whole life insurance is permanent cash value insurance that provides a tax sheltered vehicle to accumulate corporate retained earnings and pay them out later as a retirement income stream. The insurance contract has built in guarantees – premium, cash value and death benefit are all guaranteed terms. In addition to the guaranteed values, the contract earns dividends annually as declared by the board of Canada Life which add to the ultimate cash value and death benefit.

The dividend rate for 2013 has been set at 6.5%. This rate is reset annually and can go up or down. The investment component of the insurance contract is managed by Canada Life in a balanced fixed income portfolio. It is broadly based on bonds, commercial real estate, and mortgages, with only 14-18% in equities.

Sheltered Growth of Asset Value In addition to the guaranteed insurance value, the contract has an investment component and is entitled to dividends annually as declared by the board of Canada Life. The Income Tax Act contains a specific provision that stipulates investment returns inside insurance contracts are tax exempt while the funds remain inside the contract and when paid out at death. This investment component forms part of the insurance proceeds paid out at death.

Income in Retirement The investment component is available for withdrawal during lifetime. In addition, the annual dividends can be paid out during lifetime. In the early years of the contract the corporation can elect to accumulate all income and dividends within the contract to take advantage of the sheltered growth. Later, the corporation can change the election and begin withdrawing cash from the contract and distribute it to the entrepreneur/ professional as a dividend.

Transfer on Death All cash remaining in the contract together with the insurance amount is received by the corporation as tax free insurance proceeds. These proceeds, less adjusted cost base if any, can be paid to the estate as a tax free capital dividend. The original savings from the tax deferral have grown tax free and the death benefit can be distributed tax free. Corporate insurance has made the tax deferral permanent – and magnified the estate value.

Participating life insurance with Canada Life Long-term, stable coverage built on a core of basic guarantees.

Choose from: • Wealth Achiever • Estate Achiever For more information on participating life insurance products, contact the British Columbia regional marketing centre at 1-800-663-0413.

12 | Advocis Charitable giving and business succession planning

2012

At the end of the rainbow Legacy Funds help make your philanthropic dreams come true.

PHOTO: CLAUDETTE CARRACEDO

B

ill and Manny had definite ideas about what they wanted to do in their retirement.

They wanted to travel. They also wanted to indulge their mutual interest in gardening, opera and art. And, just as important, they wanted to give something back to their community.

At 68 and 72, Bill and Manny are reaping the benefits of almost 40 years together. Forty years of hard work and smart investing. Life is good.

But both men have friends, and friends of friends, who are not having an easy time. Many have not made even the most basic preparations for their “golden years” and are now struggling financially.

“That’s why we decided to start the Rainbow Fund,” says Bill. “It started with our first Will together, on November 6, 1994. We had made money on a couple of properties, and were thinking ahead about what happens to this money when we die.”

“We have no children, and we didn’t want to give money to relatives who we rarely see. We thought of setting up a private foundation. But that proved to be too much work. Then, in 2008, the Will needed to be looked at again. And by that time our plans had become clearer.”

“We had some older friends, and thought ‘What’s going to happen to these people who don’t have a lot of money? One friend of ours lived for many many years in a small apartment in the West End. He didn’t have any money to speak of. He just made ends meet. When he got sick, he was placed in a facility far from home and friends, in a room with a straight, elderly gentleman of a completely different ethnic background — someone he had nothing in 2012

common with. He was very bitter. He died eight months later.”

It was stories like this that re-confirmed Bill and Manny’s plans.

“We decided on trying to create a retirement home for the gay and lesbian community. We wanted to look at something that was doable.

Maybe not in our life-time, but do-able. So when we did our Wills in 2008, we included Vancouver Foundation.”

They started a Legacy Fund at Vancouver Foundation that will contribute towards a home for elderly and financially-challenged gays and lesbians who want a sense of community, in their community.

“It’s tough if you’ve been renting all your life,” says Bill. “Living for the late nights and parties, and not putting anything away for the time when you can’t, or don’t want to, work anymore.

Manny and I have been very lucky. And we want to help where we can.”

Kristin Helgason, Director of Development and Donor Services at Vancouver Foundation, helped the couple set up their fund. She quotes an old Chinese proverb to explain the concept of legacy giving: One generation plants the trees… another gets the shade.

“This is the idea of Legacy Giving,” she says enthusiastically. “When you leave a gift to Vancouver Foundation in your Will, you are planting a seed, a seed that with careful tending, will grow into something that can benefit future generations.

“We invest your gift wisely. With expert advice, your legacy fund is invested to grow over time.

“And whether you establish a legacy fund now, or through a gift in your Will, you or your estate will also benefit from the tax deductions.”

Bill and Manny appreciate the flexibility and peace of mind that legacy funding can provide.

Once a fund is set up, they can easily change the beneficiaries at any time, without the effort or expense of changing their Will. Also, having a fund pre-established makes it much easier for an Executor to carry out any charitable wishes.

Vancouver Foundation has been helping people leave legacies to their community for almost 70 years.

“I can’t think of any other foundation in the city that would be suitable for what we wanted to do,” says Bill. “There isn’t any really. Certainly not one with the variety, the breadth of offering that Vancouver Foundation has. You can put money into the arts, into medical research. And you could change your plans if you wanted to. Also, I wanted to know where the money was going. Vancouver Foundation has a lot of different components. And we knew there would be over-sight on the money.”

Join the hundreds of generous donors, like Bill and Manny, and start building your legacy today. You’ll find this is not the end of the rainbow. In fact, it’s just the beginning.

To find out more about legacy funds, and how you can start your own, contact: Kristin Helgason LL.B., Director of Development and Donor Services at Vancouver Foundation via e-mail kristin.helgason@vancouverfoundation.ca or call 604.629.5186 or visit the Foundation website at: www.vancouverfoundation.ca

Charitable giving and business succession planning Advocis | 13

What do the designations mean?

C

hoosing a financial advisor can be one of the most important decisions you’ll ever make. Start by looking for an advisor who’s acquired the skill, experience and education that comes with a professional designation. Here’s a guide to some of the most highly regarded designations in the financial services industry.

Certified Financial Planner®, CFP® CFP® stands for Certified Financial Planner®. The CFP® designation identifies individuals who are dedicated to a high level of professionalism in providing financial planning advice.

The CFP® credential assures you that those using it have agreed to adhere to the highest internationally recognized standards of competence and ethical practice as set out by Financial Planners Standards Council (FPSC). The CFP® is an internationally recognized credential held by more than 100,000 people in 19 countries around the world including almost 17,000 in Canada.

(Source: http://www.cfp-ca.org).

Chartered Life Underwriter, CLU™ A Chartered Life Underwriter (CLU™) is a financial advisor with advanced knowledge in wealth transfer and estate planning. The CLU™ curriculum is comprised of four courses in Financial Planning Fundamentals, Contemporary Practices in Financial Planning, Comprehensive Practices in Risk & Retirement Planning and Wealth Management and Estate Planning. The last three courses that lead to the CLU™

14 | Advocis Charitable giving and business succession planning

designation are comprised of Advanced Taxation, Law, and Applied Estate Planning.

The CLU™ designation is internationally recognized in financial services industry and is respected by clients and other professions. The CLU™ designation is 80 years old. The CLU™ designation is recommended to financial advisors who want to meet the financial needs of high net worth clients. The CLU™ designation program is available through Advocis and the CLU™ Institute.

Chartered Financial Consultant, CH.F.C. A Chartered Financial Consultant (CH.F.C.) is a financial advisor with advanced knowledge in wealth accumulation and retirement planning.

Registered Financial Planner, R.F.P. A Registered Financial Planner is a designation awarded annually by the Institute of Advanced Financial Planners (IAFP) to its members who have met and

2012

to meet their clients’ personal, business and estate planning needs. The course consists of two semesters and is available through Advocis.

maintained the professional standards as established by the Institute. By earning the R.F.P. designation, IAFP members demonstrate to their clients and their peers that they are highly competent professionals who actively practice a comprehensive financial planning process

Registered Health Underwriter, RHU A Registered Health Underwriter (RHU) is an advisor with advanced knowledge in, critical illness, long term care and employee benefits. The RHU advisor has the education and specialized knowledge to provide strategic living benefits advice in order

Registered Employee Benefits Consultant, REBC An advisor with an REBC designation is versed in group insurance programs, planning for retirement and employee benefits In addition to a designation, you should insist that your advisor belong to a professional association such as Advocis (The Financial Advisors Association of Canada). Advocis is committed to helping its members more effectively serve their clients.

Advocis members are dedicated professionals and are required to either possess or be on track to earning a recognized professional designation.

To protect consumers, Advocis also presses governments, regulators, and policy makers to require recognized professional

designations of those holding themselves out as financial advisors. Consumers need to know who is qualified to provide appropriate advice, where to get that advice, and where to find redress outside of the costly court system.

The more than 10,000 Advocis members across Canada adhere to an established Code of Professional Conduct, subscribe to best practices, participate in ongoing competencybased continuing education requirements, and maintain appropriate levels of professional liability insurance. That’s what being an Advocis member means.

What does it mean to you, as a consumer? It means that you can have confidence in your advisor knowing that your best interests will always be the driving force in any advice giving or product transaction.

For more information about Advocis, visit www.advocis.ca.

BCIT matters.

Wherever you are, a BCIT grad is making an impact.

Support the future generation of BC’s workforce with a gift in your will to the BCIT Foundation.

Contact Pommashea Noel-Bentley at 778.928.2200.

bcit.ca/foundation

i

choose...

Knowledge

BENEFITS OF BEING A SPONSOR WITH ADVOCIS GREATER VANCOUVER Sponsoring with Advocis Greater Vancouver, gives you and your company access to many of the country’s best financial advisors and planners.

Advocis members represent a broad spectrum of the financial services industry, including insurance, investments and securities, and they work closely with their clients in the areas of financial, retirement, estate and succession planning. Our advisors and planners consistently strive to improve and enhance their practical and technical knowledge by attending a variety of industry events and functions-the result is that they, more than any other group, have their finger on the country’s financial pulse.

Benefits of Sponsoring: UÊÀ> ÃiÊ>Ü>Ài iÃÃÊ vÊÞ ÕÀÊ«À `ÕVÌÃÊ> `ÊÃiÀÛ ViÃ\ÊÌ iÊ `Û V ÃÊ Ài>ÌiÀÊ Vancouver chapter is a well-connected community of approximately 1,000 financial advisors, plus our members are active participants in their local communities

Integrity

UÊ>VViÃÃÊ>Ê`Þ > V]Êi ÌÀi«Ài iÕÀ > Ê >À iÌ\Ê > ÞÊv > V > Ê>`Û Ã ÀÃÊ>ÀiÊ small business owners and therefore searching for companies that can improve business efficiencies in a cost effective manner UÊ}> ÊiÝ« ÃÕÀiÊÌ Êv > V > Ê«À viÃà > Ã\Ê `Û V ýÊv > V > Ê>`Û Ã ÀÃÊ> `Ê planners deal on a daily basis with scores of Canada’s best companies in the financial services industry-let them carry your message and extend your brand recognition

Community

UÊ`iÛi «Ê iÞÊLÕÃ iÃÃÊÀi >Ì Ã «ÃÊv ÀÊ } }Ê}À ÜÌ Ê «« ÀÌÕ Ì iÃ\Ê Advocis’ financial advisors and planners routinely speak to large numbers of individuals, business owners and community leaders, which makes them beneficial business contacts ready and able to help you expand your network

ÀÊ ÀiÊ v À >Ì Ê Ê ÕÀÊ-« Ã ÀÃ «Ê «« ÀÌÕ Ì iÃ]ÊÜiÊ Û ÌiÊÞ ÕÊÌ ÊV Ì>VÌ\

Professionalism

Advocis Greater Vancouver * i\ÊÈä{ {£ ÈxÇ info@advocisvancouver.ca > \Ê v J>`Û V Ã Û> V ÕÛiÀ°V> "ÀÊÛ Ã ÌÊ ÕÌÊÜiLÃ ÌiÊ>Ì\ www.advocisvancouver.ca

Advocis®, CLU® and APA® are trademarks of The Financial Advisors Association of Canada.

16 | Advocis Charitable giving and business succession planning

2012

What Is A Will?

A

will is a legal document, which sets out your wishes regarding the administration and distribution of your estate and gives powers to your Executor to carry out those wishes.

Your Will does not take effect until you die so until then, you are free to deal with your assets and change the terms of your Will or revoke it completely as long as you are mentally competent.

Changes in your family or legislation relating to taxation, Wills and estate can have an impact on your Will so it is important to review it on a regular basis to make sure that it is up to date and still reflects your wishes. The will speaks from the moment immediately before death.

Why do i need a will?

Making a Will is the only way in which you can be sure that the assets you have worked so hard to accumulate can be distributed to the heirs/beneficiaries you choose, in a timely and tax efficient manner. The terms and conditions you set out in your Will are subject to provincial laws regarding family law and dependents relief.

Planning your Will involves decisions, including the choice of Executors, cash legacies to individuals or charities, specific legacies of personal items, provision for your spouse and minor children. If you own or operate a successful business, it is important to give careful consideration to the orderly succession of the ownership of the business, perhaps to the most logical successors, other family members or key employees. Canadian income tax and capital gains tax arising on death as well as probate fees in some jurisdictions are other important factors to consider in planning your Will. Careful planning can significantly reduce these liabilities on death.

Common terms: TESTATOR: Person making Will, if male TESTATRIX: Person making Will, if female EXECUTOR: Person charged with duty to realize and distribute estate, if male EXECUTRIX: Person charged with duty to realize and distribute estate, if female TRUSTEE: Person who holds and administers estate in accordance with the will provisions commonly used to refer to both Executor/Executrix and Trustees synonymously BENEFICIARY: Person who inherits BEQUEST: Gift made to a Heir/ beneficiary 2012

INTESTATE: An individual who dies without a valid will is considered intestate What happens if you die intestate?

(I.e. without a will, your will has been revoked, or it is not properly signed and witnessed and is therefore invalid) • No one is authorized to begin handling your estate. Applications must be filed in Court. Court appearances may be necessary.

• The estate will be distributed according to the provisions of the Estate Administration Act, not deceased’s intentions.

• Persons entitled to administer the estate may be difficult to locate, have little interest or be incompetent.

• Adverse tax consequences.

• Person must apply for right to be guardian of children.

• Public Trustee may become involved with a minor child’s interests.

• Cost of administration is generally higher.

• Separated spouses, common law spouses and illegitimate children will have to apply to receive any benefit from the estate.

• Consider the impact of such legislation as the Wills Variation Act and the Family Relations Act • A professionally drawn up will allows you to include advanced features such as the setting up of a trust in order to control the timing of the distribution of your estate assets Statistics show that more than 50% of Canadians have not prepared a Will for a number of reasons, some of which are: • They believe they do not have a sufficient estate or have nothing to leave • They believe that their family will receive everything anyway • They are afraid that after making a Will they will die • They don’t want anyone to know the details of their estate or affairs

current Intestate Succession Laws.

The handling of an Estate in each province is different as the many laws concerning these matters are all under provincial jurisdiction. Some of the Provincial laws, which may need consideration, are: • Matrimonial Property Act • Family Law Act • Intestate Succession Act • Devolution of Estates Act • Trustees/Public Trustees Act • Estate Administration Act • Dependents Relief Act • Wills Act • Survivorship Act • Human Tissue Act • And others

No matter which one of these excuses is yours, it is not a sufficient reason to leave your loved ones with the problem of dealing with your affairs, without the benefit of your written instructions in the form of a Will.

Each province has laws on intestate succession, which clearly outline what happens to your Estate if you die without a Will (intestate).

These laws are different for each province. Included in this guide is a separate list of all provincial

Purpose The purpose of this guide is to provide you with a list of the things you will need to prepare and consider prior to seeing your lawyer or notary to have your Will drafted. When you are prepared with the details of your assets, liabilities, wishes and decisions, the actual meeting with your legal advisor to prepare your Will can go much more smoothly and, hopefully, will be less expensive. This step-bystep guide should help you in that preparation.

How is a will revoked?

A will is revoked by: • Execution of a new will • A written declaration that it is revoked • Burning, tearing or other destruction with the intent to revoke • And further, if after making a will, there is a judicial separation, decree of divorce, or the marriage is found to be a nullity, the Wills Act states that the will is to be read as if the surviving spouse predeceased the testator.

Therefore, the spouse cannot be executor and any gifts are invalid.

PARTNERS WITH YOU Proudly Canadian, and helping Canadians build wealth and protect their financial security for more than 89 years.

When should you review your will?

• After marriage, divorce, or separation • On death of a spouse or beneficiary • When financial circumstances change • When you change jurisdictions each province has jurisdiction over property within it and the laws vary • Periodically consult your lawyer or accountant re changes in the law, particularly tax law • When you are developing an overall financial plan

Offering a full array of products including critical illness, insurance, investments and group benefit plans, we are a company built on partnering with our distribution partners to provide responsive and personalized service.

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What are the advantages of a professionally drawn will?

• Provides an opportunity to review and discuss your wishes with experienced third party to ensure that what you intend is reflected in the will • Ensures that it is properly executed

*A detailed examination of the above legislation is beyond the scope of this guide

Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.

Investments • Insurance • Group solutions www.empire.ca info@empire.ca (11/12) E.&O.E.

AdvocisAd-2012-11-ALL.indd 3

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Charitable giving and business succession planning Advocis | 17

Biggest registered foundations in B.C. RANKED BY | Total assets in 2012 Rank '12 Organization

Address

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Vancouver Foundation 555 Hastings St W Suite 1200, Vancouver V6B 4N6 P: 604-688-2204 F: 604-688-4170 www.vancouverfoundation.ca Victoria Foundation 645 Fort St Suite 109, Victoria V8W 1G2 P: 250.381.5532 F: 250.480.1129 www.victoriafoundation.bc.ca Apotex Foundation 700 Georgia St W Suite 2700, Vancouver V7Y 1B8 P: 416-749-9300 F: 416-401-3812 NP John Volken Foundation 6911 King George Hwy, Surrey V3W 5A1 P: 604-592-3001 F: 604-592-3004 www.johnvolkenfoundation.org Jim Pattison Foundation 1067 Cordova St W Suite 1800, Vancouver V6C 1C7 P: 604-688-6764 F: 604-694-6900 www.jimpattison.com Lotte and John Hecht Memorial Foundation 325 Howe St Suite 502, Vancouver V6C 1Z7 P: 604-683-7575 F: 604-683-7580 www.hecht.org Sherman Foundation 700 Georgia St W Suite 2700, Vancouver V7Y 1B8 P: NP F: NP NP Diamond Foundation 105 Commercial Dr N, Vancouver V5L 4V7 P: 604-255-9301 F: 604-255-3434 NP Audain Foundation 1333 West Broadway Suite 900, Vancouver V6H 4C2 P: 604-877-1131 F: 604-871-4280 NP Tula Foundation PO Box 309, Heriot Bay V0P 1H0 P: 519-272-9982 F: NP NP Aqueduct Foundation 650 Georgia St W Suite 510 PO Box 11538, Vancouver V6B 4N7 P: 604-718-7100 F: 604-718-7152 www.aqueductfoundation.ca Coast Conservation Endowment Fund Foundation 409 Granville St Suite 1455, Vancouver V6C 1T2 P: 604-684-0223 F: NP www.coastfunds.ca Vancity Community Foundation 815 Hastings St W Suite 510, Vancouver V6C 1B4 P: 604-877-7553 F: 604-709-6909 www.vancitycommunityfoundation.ca Loyalty Foundation 1500 Georgia St W Suite 1555, PO Box 62, Vancouver V6G 2Z6 P: 604-683-7006 F: 604-683-5676 NP Access Foundation 1040 Georgia St W Suite 850, Vancouver V6E 4H1 P: NP F: NP NP Sitka Foundation 650 Georgia St W Suite 510, Vancouver V6B 4N7 P: 604-718-7119 F: 604-718-7152 www.sitkafoundation.org Mr. and Mrs. P.A. Woodward's Foundation 1155 Pender St W Suite 710, Vancouver V6E 2P4 P: NP F: NP NP Rix Family Foundation PO Box 514, Nanaimo V9R 5L5 P: 604-737-7224 F: 604-737-7204 NP Central City Foundation 304 Cordova St W Suite 206, Vancouver V6B 1E8 P: 604-683-2263 F: 604-683-2205 www.centralcityfoundation.ca Rick Hansen Foundation 3820 Cessna Dr Suite 300, Richmond V7B 0A2 P: 604 295 8149 F: 604 295 8159 www.rickhansen.com

Year founded

Area of focus

Top staff executive

Top volunteer executive

Revenue '12 Expenditures '12 Liabilities '12

Assets '12

1943

Vancouver Foundation recognizes the complexity of communities and funds a wide array of areas: animal welfare; arts and culture; children, youth and families; education; environment; health and social development; medical research; youth philanthropy and youth homelessness A pool of charitable gifts to create permanent, income-earning funds to benefit the community, supporting charities in the arts, community services, education, environment, health and recreation

Faye Wightman, president and CEO

Gordon MacDougall, board chair

$46.79 million1 $45.33 million1 $1.54 million1

$748.39 million1

Sandra Richardson, CEO

Deirdre Roberts, board chair

$17.56 million1 $12.11 million1 $52.06 million1

$180.69 million1

1984

Scholarships, bursaries, awards, hospitals, places of worship

NP

$107.43 million

1998

Operators of Welcome Home Society, Lift the Children, Welcome Home for Children, PricePro and PriceCo to provide disadvantaged people with what they need to become self-sufficient, contributing members of society

$2.15 million $1.43 million $10,000 $9.09 million1 $6.28 million1 $11.5 million1

1994

The principal gifts made by the charity were in the areas of medical/hospital NP capital programs, Christian independent schools and other religious activities Medical research, economic education and assistance to recipients in need. Angela Webster, Investigation and support of complementary and alternative medicine executive director

1967

1962 1999 1984 1997 2001 2006

2005 1989

2003 1973 2008 1967 1977 1907

1989

Bernard Sherman, chair and CEO, Apotex Inc. John Volken, founder, NP Bil Koonar Jim Pattison, chair

$2.52 million1 $8.08 million $5.06 million1 NP $18.64 million1 $18.15 million1 $6.16 million1 Funds various religious, education and health organizations in Canada Bernard Sherman, NP $876,089 chair $184,469 $11,000 Donations to qualified donees Jill Diamond, Gordon Diamond, $12.73 million1 $12.27 million1 executive director president $114,3891 Donations to qualified donees in support of the visual arts NP Michael Audain $11.12 million1 $3.59 million1 $9,3001 Nature and habitat-conservation groups, research and universities and NP Eric Peterson, $5.44 million colleges founder and $3.86 million president $193,490 Aqueduct receives gifts from individuals across Canada and makes grants to NP Rodney $36.99 million1 a wide variety of charities at the recommendation of our donors Scheuerman, chair, $31.06 million1 $696,3271 Terry Didus, secretary, James Parks, treasurer Long-term fund designed to support activities that maintain or improve the Scott Rehmus, CEO Merv Child, board $1.4 million1 $2.83 million1 Great Bear Rainforest chair $391,3171 Primary focus in areas of nonprofit social enterprise, community owned real Derek Gent, executive Cam Brewer, Sean $10 million estate and collaborative approaches to change director Markey, co-chairs $7.91 million $441,937

$95.87 million1 $87.64 million1 $81.25 million $75.23 million1 $75.08 million1 $74.07 million1 $68.33 million1

$67.22 million1 $45.13 million

$887,418 NP $4,383 Supports performing arts education for disadvantaged children and youth NP $8.67 million and assistance to disadvantaged individuals living in poverty $900,9841 $7,8731 Support organizations that advance land and nature conservation, invest in Pauline Megannety, Ross Beaty, $1.64 million1 $1.04 million1 community projects and groups globally, and provide leadership in executive director president $66,0011 stewardship and environmental education Providing grants to charitable organizations in B.C. for projects that benefit NP Leo Sauve, president $1.09 million1 $1.08 million1 the health of British Columbians NP Private foundation supporting universities and colleges, museums, galleries NP Laurie Rix, president $1.15 million1 $1.5 million1 and concert halls and hospitals $2,0001 Improving the lives of people in need in Vancouver's inner city by bringing Jennifer Johnstone, Julie McGill, Board $1.41 million together neighbours helping neighbours build a community of hope president and CEO Chair $1.83 million $7.36 million

$35.21 million

Finding a cure for spinal cord injury and improving the quality of life for those Catherine Ruby, CFO Rick Hansen, Lyall with spinal cord injury and related disabilities Knott, foundation board co-chairs

$26.6 million

Gifts to qualified donees

NP

Greg Kerfoot, Lisa Kerfoot, Sandra Hancock, directors Robert Bentall, board chair

$101.19 million1

$27.59 million $35.12 million $6.76 million

$34.99 million1 $34.89 million1 $29.09 million1 $28.11 million1 $26.67 million

Sources: Interviews with charities that responded to requests for information and BIV research of Canada Revenue Agency T3010 filings. NR Not ranked NP Not provided 1 - 2011 figure

18 | Advocis Charitable giving and business succession planning

2012

Biggest health charitable organizations in B.C. RANKED BY | 2012 expenditures Rank '12 Organization

Year founded

Area of focus

Top staff executive

BC Children's Hospital Foundation 938 28th Ave W, Vancouver V5Z 4H4 P: 604-875-2444 F: 604-875-2596 www.bcchf.ca VGH & UBC Hospital Foundation 855 12th Ave W, Vancouver V5Z IM9 P: 604-875-4676 F: 604-875-5433 www.worldclasshealthcare.ca BC Cancer Foundation 686 Broadway W Suite 600, Vancouver V5Z 1G1 P: 604-877-6040 F: 604-877-6161 www.bccancerfoundation.com Canadian Cancer Society, BC and Yukon Division 565 10th Ave W, Vancouver V5Z 4J4 P: 604-872-4400 F: 604-879-4533 www.bc.cancer.ca Terry Fox Foundation 46165 Yale Road Suite 303, Chilliwack V2P 2P2 P: 604-701-0246 F: 604-701-0247 www.terryfox.org Heart and Stroke Foundation, BC & Yukon office 1212 Broadway W Suite 200, Vancouver V6H 3V2 P: 604-736-4404 F: 604-736-8732 www.heartandstroke.bc.ca

1949

Pediatric health care

Teri Nicholas, president and Kevin Bent, board chair CEO

1980

Raising funds for VGH, UBC Hospital, GF Strong Rehab Centre and Ron Dumouchelle, Vancouver Coastal Health Research Institute president and CEO

1935

BC Cancer Foundation is the bridge that connects philanthropic support and research breakthroughs in cancer knowledge

Douglas Nelson, president and CEO

Jess Ketchum, board chair

1938

Research and enhancing the quality of life for people living with cancer

Barbara Kaminsky, CEO

1993

Donna White, provincial director, B.C. and Yukon

Rick Hansen Institute 818 10th Ave W Suite 6400, Vancouver V5Z 1M9 P: 604-707-2100 F: 604-707-2121 www.rickhanseninstitute.org Canuck Place Children's Hospice 1690 Matthews Ave, Vancouver V6J 2T2 P: 604-731-4847 F: 604-739-4376 www.canuckplace.org Peace Arch Hospital Foundation 15521 Russell Ave, White Rock V4B 2R4 P: 604-535-4520 F: 604-541-5820 www.peacearchhospital.com St Paul's Hospital Foundation 1081 Burrard St Suite 178, Vancouver V6Z 1Y6 P: 604-682-8206 F: 604-806-8326 www.helpstpauls.com BC Lung Association 2675 Oak St, Vancouver V6H 2K2 P: 604-731-5864 F: 604-731-5810 www.bc.lung.ca Alzheimer Society of BC 828 8th Ave W Suite 300, Vancouver V5Z 1E2 P: 604-681-6530 F: 604-669-6907 www.alzheimerbc.org Lions Gate Hospital Foundation 231 15th St E, North Vancouver V7L 2L7 P: 604-984-5785 F: 604-984-5786 www.lghfoundation.com Canadian Mental Health Association, BC Division 1111 Melville St Suite 1200, Vancouver V6E 3V6 P: 604-688-3234 F: 604-688-3236 www.cmha.bc.ca The Arthritis Society, BC & Yukon Division 1600 6th Ave W Suite 201, Vancouver V6J 1R3 P: 604-714-5550 F: 604-714-5555 www.arthritis.ca Kelowna General Hospital Foundation 2268 Pandosy St, Kelowna V1Y 1T2 P: 250-862-4438 F: 250-862-4377 www.kghfoundation.com Children's Health Foundation of Vancouver Island2 2400 Arbutus Rd, Victoria V8N 1V7 P: 250-519-6977 F: 250-519-6715 www.childrenshealthvi.org Spirit of the North Healthcare Foundation 1475 Edmonton St, Prince George V2M 1S2 P: 250.565.2515 F: 250.565.2595 www.spiritofthenorth.ca Positive Living BC 1107 Seymour St Suite 200, Vancouver V6B 5S8 P: 604-893-2200 F: 604-893-2251 www.positivelivingbc.org Victoria Hospice and Palliative Care Foundation 1952 Bay St 4th floor Suite 400, Victoria V8R 1J8 P: 250-952-5720 F: 250-888-2678 www.victoriahospice.org

2009

Raises funds for use in cancer research, primarily through the annual Terry Fox Run, National School Run Day and the Great Canadian Hair "Do" Event A volunteer-based health charity that leads in eliminating heart disease and stroke and reducing their impact through the advancement of research and its application, the promotion of healthy living and advocacy Committed to accelerating the translation of discoveries and best practices into improved treatments for people with spinal cord injuries

Bill Barrable, CEO

Bernie Bressier, board chair $12.06 million $12.04 million $17.7 million

$17.89 million $15.12 million

1995

North America's first free-standing children's hospice

Margaret McNeil, CEO

John Rose, board chair

$8.33 million $8.24 million

1988

Provides funding for the purchase of new and replacement capital equipment at Peace Arch Hospital

Jackie Smith, executive director

Graham Cameron, board chair

$14.57 million $7.26 million $9.35 million $27.74 million $1.1 million $9.21 million

1980

Raises funds for innovation in patient care and research at St. Paul's, Vancouver's downtown teaching hospital

Dick Vollet, president and CEO

David Poole, board chair

$40.86 million $317,803 $15.99 million To improve lung health through research, education, advocacy Scott McDonald, executive Muff Hackett, board chair $13.11 million and community programs director $2.32 million $6.33 million Support services and education programs locally and provincially Jean Blake, CEO Harry Diemer, board chair $5.56 million to help Canadians who are affected by Alzheimer's disease and $1.35 million related dementias $7.01 million Raises funds to support the highest quality health care on the Judy Savage, president Clark Quintin, board chair $37.39 million North Shore for 10 facilities and programs including Lions Gate $2.17 million Hospital $11.38 million Exists to promote the mental health of British Columbians and Bev Gutray, CEO Judith Moore, board chair $5.26 million support the resilience and recovery of people experiencing $3.83 million mental illness $4.67 million Provides leadership and funding for research, advocacy and Nancy Roper, executive Drew McArthur, chair, $1.14 million solutions to improve the quality of life for over 600,000 men, director divisional advisory board $1.49 million women and children in BC and the Yukon living with arthritis $4.45 million Independent, volunteer-driven charitable organization Doug Rankmore, CEO Karen Borring-Olsen, board $11.32 million committed to enhancing the delivery of health care to the chair $239,208 patients of Kelowna General Hospital and its associated facilities $4.66 million Supports the physical, mental and social well-being of children, Ron Hewitt, CEO Margot McLaren Moore, $46.33 million youth and families primarily on Vancouver Island and the Gulf board chair $1.09 million Islands in B.C. by raising, investing and stewarding funds $4.46 million To facilitate philanthropic investment in the enhancement of Jessica Aldred, CEO Darren Masse, president $3.68 million health care throughout the referral area of the University $1.82 million Hospital of Northern BC, Prince George $2.47 million Treatment information, support services, advocacy and Ross Harvey, executive John Bishop, chair $322,825 resources for people living with HIV/AIDS director $359,324 $3.15 million Fundraising for palliative/end-of-life care services Wayne Peterson, executive Peter Maddaugh, $5.18 million director president, board chair $726,904 $3.43 million

$6.95 million $8.69 million

Address

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

1955

1922 1981 1981 1967 1948 1980 1985 1991 1986 1997

Diego Marchese, CEO, B.C. and Yukon

Top volunteer executive

Assets '12 Liabilities '12 Revenue '12

Expenditures '12/'11

$236.77 million $102.75 million $81.9 million $138.15 million $4.5 million $58.86 million

$80.43 million $74.88 million

$78.55 million $4.21 million $50.45 million

$35.99 million $32.71 million

Lorraine Grant, board chair $35.1 million $6.78 million $39.12 million NP $92.9 million $930,897 $25.84 million Peter Scott, board chair $21.09 million1 $6.31 million1 $21.88 million1

$30.99 million $31.42 million

David Rowntree, board chair

$48.17 million $39.28 million

$26.44 million $38.02 million $20.08 million1 $20.08 million

$7.75 million $7.29 million

$6.42 million $7.99 million $5.93 million $4.81 million $5.16 million $10.28 million $4.79 million $4.13 million $4.32 million $5.78 million $4.3 million $4.66 million $3.51 million $3.74 million $3.46 million $3.07 million $3.12 million $2.94 million $2.97 million $2.43 million

Sources: Interviews with charities that responded to requests for information and BIV research. NR Not ranked NP Not provided 1 - 2011 figure 2 - Formerly Queen Alexandra Foundation for Children

2012

Charitable giving and business succession planning Advocis | 19

Biggest social charitable organizations in B.C. RANKED BY | 2012 expenditures Rank '12 Organization

Year founded

Area of focus

Top staff executive

Number of staff '12/'11 Assets '12 Liabilities '12 Revenue '12

Expenses and distributions '12/'11

S.U.C.C.E.S.S.1 28 Pender St W, Vancouver V6B 1R6 P: 604-408-7229 F: 604-408-7234 www.successbc.ca YMCA of Greater Vancouver2 1166 Alberni St Suite 801, Vancouver V6E 3Z3 P: 604-681-9622 F: 604-688-0220 www.vanymca.org United Way of the Lower Mainland 4543 Canada Way, Burnaby V5G 4T4 P: 604-294-8929 F: 604-293-0010 www.uwlm.ca Greater Vancouver Community Services Society 1212 West Broadway Suite 500, Vancouver V6H 3V1 P: 604-737-4900 F: 604-737-2922 www.gvcss.bc.ca Options Community Services Society 9815 140th St, Surrey V3T 4M4 P: 604-584-5811 F: 604-584-7628 www.options.bc.ca

1973

Social services and training, health care, housing, and foundation

Queenie Choo, CEO

Christine Brodie, board chair

$35.46 million $37.09 million

1886

We are a charity dedicated to strengthening the foundations of community.

We tackle three key causes: vulnerable families and children; unhealthy lifestyles and Isolation United Way prevents social problems from becoming crises. We are tackling the root causes of some of our community's greatest challenges — child poverty, bullying and seniors isolation.

Home support services for seniors, the disabled and financially disadvantaged

Stephen Butz, president and CEO

Mary Beck, board chair

Michael McKnight, president and CEO

Yuri Fulmer, board chair

Ron McLeod, CEO

Lynn Carter, president

Christine Mohr, executive director

John Russell, board chair

Family Services of Greater Vancouver 1638 Broadway E Suite 201, Vancouver V5N 1W1 P: 604-731-4951 F: 604-733-7009 www.fsgv.ca Immigrant Services Society of BC 333 Terminal Ave Suite 501, Vancouver V6A 2L7 P: 604-684-2561 F: 604-684-2266 www.issbc.org PLEA Community Services Society of BC 3894 Commercial St, Vancouver V5N 4G2 P: 604-871-0450 F: 604-871-0408 www.plea.ca YWCA Metro Vancouver 535 Hornby St, Vancouver V6C 2E8 P: 604-895-5800 F: 604-684-9171 www.ywcavan.org Association of Neighbourhood Houses of BC 3102 Main St Suite 203, Vancouver V5T 3G7 P: 604-875-9111 F: 604-875-1256 www.anhbc.org Abbotsford Community Services 2420 Montrose Ave, Abbotsford V2S 3S9 P: 604-859-7681 F: NP www.abbotsfordcommunityservices.com Variety - The Children's Charity 4300 Still Creek Dr, Burnaby V5C 6C6 P: 604-320-0505 F: 604-320-0535 www.variety.bc.ca Union Gospel Mission Foundation 601 Hastings St E, Vancouver V6A 1J7 P: 604-253-3323 F: 604-253-3496 www.ugm.ca St James Community Services Society 329 Powell St, Vancouver V6A 1G5 P: 604-606-0300 F: 604-606-0309 www.sjcss.com Covenant House Vancouver 575 Drake St, Vancouver V6B 4K8 P: 604-685-5437 F: 604-685-5324 www.covenanthousebc.org Jewish Federation of Greater Vancouver 950 41st Ave W Suite 200, Vancouver V5Z 2N7 P: 604-257-5100 F: 604-257-5110 www.jewishvancouver.com SHARE Family and Community Services 25 King Edward Ave Suite 200, Coquitlam V3K 4S8 P: 604-540-9161 F: 604-540-2290 www.sharesociety.ca

1928

Social services organization with more than 50 programs and services for families and children, youth, employment, women in crisis, counselling programs, for people with mental health issues, programs for the homeless and programs for immigrant newcomers Creating brighter tomorrows for children, youth, adults and families across the Lower Mainland

Caroline Bonesky, CEO

Joanne Hausch, board chair

Quest Outreach Society (Quest Food Exchange) PO Box 2156, Station Main Terminal, Vancouver V6B 3V3 P: 604-876-6626 F: 604-876-6526 www.questoutreach.org United Way of Greater Victoria 1144 Fort St, Victoria V8V 3K8 P: 250-385-6708 F: 250-385-6712 www.uwgv.ca

1990

Collingwood Neighborhood House Society 5288 Joyce St, Vancouver V5R 6C9 P: 604-435-0323 F: 604-451-1191 www.cnh.bc.ca

1985

Address

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

1932 1986 1969

1972 1979 1897 1894 1969

1965 1940 1951 1997 1986 1972

1967

$38.74 million $30.2 million $36.42 million $65.31 million3 $31.87 million3 $35.91 million3 $56.2 million $5.38 million $46.43 million $7.05 million $4.05 million NP $15.52 million $9.24 million $25.1 million

$4.72 million $3.48 million $21.45 million Immigrant services, language college, employment and career services Patricia Woroch, CEO Manchan $7.3 million Sonachansingh, $2.67 million president $21.75 million Families, youth and adults Timothy Agg, David Duncan, $6.79 million executive director president $3.95 million $19.69 million To touch lives and build better futures for children, youth and women through Janet Austin, CEO Karen Gilmore, $32.29 million3 $7.88 million3 advocacy and integrated services that foster economic independence, board chair $18.8 million3 wellness and equal opportunities Community and social services Mamie HuttDarlene Dean, $12.16 million Temoana, CEO president $7.1 million $17.71 million Social services organization with 70 programs serving young families and Rod Santiago, Virgina Cooke, board $7.88 million3 $2.32 million3 children, youth, legal aid, a food bank with a free dental clinic, recycling depot, executive director president $16.66 million3 the immigrant and multi-cultural community, seniors and people with developmental disabilities Children who have special needs Barbara Hislop, Dave McConachie, $20.12 million3 executive director president and chief $271,8843 $14.26 million barker Provides meals, emergency shelter, free clothing and personal care products, Bill Mollard, Teresa Black $25.89 million3 alcohol and drug recovery programs, education and employment programs president Hughes, board chair $18.06 million3 $15.19 million3 and abstinence-based housing Housing, health and social services to the most vulnerable in the community Jonathan Oldman, Marleen Morris, $17.6 million executive director president $15.59 million $12.17 million Crisis shelter, outreach, community services, transitional living and support Krista Thompson, Jeffrey Bacha, board $9.25 million3 $6.05 million3 services for homeless youth executive director chair $11.62 million3 Building a strong, vibrant and enduring Jewish community on the Lower Mark Gurvis, CEO Mitchell Gropper, $39.92 million Mainland, in Israel and throughout the world board chair $3.11 million $13.12 million Social services and programs to the Tri-cities including a food bank, early Martin Wyant, CEO Lynn Pelletier, board $3.35 million intervention therapy for children with developmental delays or disabilities, chair $1.45 million housing, counselling, addictions and gambling counselling, early education for $6.59 million preschool children and support for vulnerable families Rescuing food, reducing hunger Elizabeth Peter Brasso, board $2.5 million3 Crudgington, president $1.08 million3 $5.8 million3 executive director Funds social service agencies through a granting process to create and Linda Hughes, CEO Peter Lockie, board $11.78 million implement programs and services which address: housing for homeless, lowchair $3.95 million income and working poor; mental health and addictions and family and $892,070 community well-being Working collaboratively in the community to develop and support inclusive, Jennifer Gray-Grant, Julie Linkletter, $1.67 million innovative, sustainable initiatives and services executive director board president $1.2 million $4.85 million

$34.36 million3 $32.51 million4 $33.57 million $33.83 million $29.68 million $27.67 million $24.7 million $25.35 million $21.66 million $22.28 million $21.6 million $20.15 million $19.5 million $17.19 million $17.45 million3 $17.45 million $17.41 million $17.02 million $17.3 million3 $17.3 million $14.65 million3 $14.65 million $14.43 million3 $14.43 million $12.18 million $12.75 million $11.43 million3 $11.43 million $11.3 million $6.12 million $6.11 million $5.96 million $5.84 million3 $5.84 million $5.22 million $5.94 million $4.9 million $4.58 million

Sources: Interviews with charities that responded to requests for information and BIV research. NR Not ranked NP Not provided 1 - Includes SUCCESS, SUCCESS Multi-level Care Society, and SUCCESS Foundation. SUCCESS Group 2 - Fiscal year ends December 31 3 - 2011 figure 4 - 2010 figure

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2012

Biggest educational charitable organizations in B.C. RANKED BY | Ranked by 2012 expenditures Rank '12 Organization

Year founded

Area of focus

Top staff executive

Vancouver Aquarium Marine Science Centre 845 Avison Way, Vancouver V6G 3E2 P: 604-659-3474 F: 604-659-3515 www.vanaqua.org Vancouver Art Gallery 750 Hornby St, Vancouver V6Z 2H7 P: 604-662-4700 F: 604-682-1086 www.vanartgallery.bc.ca Knowledge Network 4355 Mathissi Pl, Burnaby V5G 4S8 P: 604-431-3200 F: 604-431-3387 www.knowledgenetwork.ca Science World British Columbia 1455 Quebec St, Vancouver V6A 3Z7 P: 604-443-7440 F: 604-443-7430 www.scienceworld.ca Arts Umbrella 1286 Cartwright St, Vancouver V6H 3R8 P: 604-681-5268 F: 604-681-5285 www.artsumbrella.com Western Canadian Universities Marine Sciences Society PO Box 100 Bamfield Marine Sciences, Bamfield V0R 1B0 P: 250-728-3301 F: NP www.bms.bc.ca BC Agriculture in the Classroom Foundation 1767 Angus Campbell Rd, Abbotsford V3G 2M3 P: 604-556-3088 F: 604-556-3030 www.aitc.ca/bc BC Technology for Learning Society 6741 Cariboo Rd Suite 206, Burnaby V3N 4A3 P: 604-250-9936 F: NP www.cfsbc.ca

1956

Self-supporting, non-profit association dedicated to effecting the conservation of aquatic life through display and interpretation, education, research and direct action Non-profit organization with more than 10,000 artworks in its permanent collection

John Nightingale, president Margot Spence, board chair Kathleen Bartels, director

George Killy, board chair

1981

B.C.'s public education broadcaster

Rudy Buttignol, president and CEO

Nini Baird, board chair

1977

Education and leadership in science and technology

Bryan Tisdall, president and Andrew Harries, board CEO chair

1979

Arts education for young people

Lucille Pacey, president and Richard Prokopanko, CEO board chair

1972

Operates the Bamfield Marine Sciences Centre, a permanent base for marine and coastal-oriented field operations on the west coast of Canada Working with educators to bring B.C.'s agriculture to our students

Bradley Anholt, director

Junior Achievement of BC 475 Georgia St W Suite 110, Vancouver V6B 4M9 P: 604-688-3887 F: NP www.jabc.org Columbia Basin Alliance for Literacy 1535 - 14th St RR 4 #2, Invermere V0A 1K4 P: 250-342-3210 F: 250-342-9221 www.cbal.org HR MacMillan Space Centre 1100 Chestnut St, Vancouver V6J 3J9 P: 604-738-7827 F: 604-736-5665 www.spacecentre.ca Forrex Forum for Research and Extension in Natural Resources Society 235 1St Ave Unit 702, Kamloops V2C 3J4 P: 250-371-3746 F: NP www.forrex.org Leading Edge Endowment Fund 1188 Georgia St W Suite 900, Vancouver V6E 4A2 P: 604-438-3220 F: NP www.leefbc.ca Irving K. Barber British Columbia Scholarship Society 645 Fort St Suite 1094, Victoria V8W 1G2 P: 250-381-5532 F: 250-480-1129 www.bcscholarship.ca DSRF Down Syndrome Research Foundation 1409 Sperling Ave, Burnaby V5B 4J8 P: 604-444-3773 F: 604-431-9248 www.dsrf.org Pacific Centre Family Services Association 345 Wale Rd, Victoria V9B 6X2 P: 250-478-8357 F: 250-478-3699 www.pacificcentrefamilyservices.org Vancouver Maritime Museum 1905 Ogden Ave, Vancouver V6J 1A3 P: 604-257-8300 F: 604-737-2621 www.vancouvermaritimemuseum.com Disabled Workers Foundation of Canada 4755 Cherry Creek Rd, Port Alberni V9Y 0A7 P: 778-421-0821 F: 778-421-0823 www.nidmar.ca Hippy Canada (Home Instruction for Parents of Preschool Youngsters) 1030 Denman St Suite 125, Vancouver V6E 3W1 P: 604-676-8250 F: 6046768250 www.hippycanada.ca People's Law School: The Public Legal Education Society 900 Howe St Suite 150, Vancouver V6Z 2M4 P: 604-331-5400 F: 604-331-5401 www.publiclegaled.bc.ca

1955

To practise ethical recycling of computer waste by providing refurbished computers for students and learners of all ages, and give youth interns job skills in hardware repair, team-building and mentorship World’s largest organization dedicated to educating young people about business. Our three educational pillars for student success: work readiness, entrepreneurship and financial literacy Literacy services to communities within the Columbia Basin with programs ranging from early childhood to seniors computers, English as a second language and volunteer tutoring To educate, inspire and evoke a sense of wonder about the universe, our planet and space exploration

Mary-Em Waddington, executive director, Wayne Johnson, operations manager Jan Bell-Irving, president and CEO, JA BC

1998

Founded to help people develop science and knowledge-based solutions to complex natural resource challenges

Sasko Despotovski, CEO

2003

The fund's objective is to encourage social and economic development in B.C. through university research chairs

Max Cairns, executive director

2004

Provides scholarships to students attending post-secondary institutions

NP

1995

To empower individuals with Down syndrome to reach their full potential throughout life by pioneering and providing educational programs and services, grounded in foundational research Dedicated to maintaining outstanding services for the people we work with through education, counselling and creative programming

Dawn McKenna, executive director

1958

To educate and preserve the region's maritime heritage

Simon Robinson, executive Craig Beattie, president director

1992

An education, training and research organization committed to reducing the human, social and economic costs of disability

Wolfgang Zimmermann, executive director

2002

Early childhood education program supporting families and children Debbie Bell, executive at risk director

1974

Our goal is helping people throughout B.C. gain a better understanding of their rights and responsibilities under the law

Address

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

1931

1996 1995

2001 1968

1979

Top volunteer executive

NP

Linday Babineau, executive Sarah Ryall, president director

Ali Wassing, executive director Rob Appleton, executive director

Mitzi Dean, executive director

Terresa Augustine, executive director

NP

Assets '12 Liabilities '12 Revenue '12

Expenses and distributions '12/'11

NP NP $29.42 million1 $57.7 million1 $57.7 million1 $14 million1 $14.83 million $4.81 million $11.71 million $48.19 million $3.74 million $9.19 million $3.52 million2 $1.66 million2 $4.98 million1 $6.67 million1 $2.5 million1 $3.86 million1 $6.01 million1 $5.05 million1 $3.22 million1 $944,994 $5,746 $2.82 million

$29.74 million1 $29.74 million $14.81 million1 $14.81 million $10.63 million $10.08 million $9.84 million $10.44 million $5.06 million1 $5.06 million $3.65 million1 $3.65 million $3.34 million1 $3.34 million $3.1 million $2.68 million

Tim Manning, board chair $2.33 million1 $670,5681 $2.08 million1 Marilyn Peterson, chair $784,4311 $337,6741 $1.72 million1 Eric Pringle, president $221,978 $221,978 $1.52 million Grant Parnell, chair $1.11 million $129,403 $1.36 million

$2.01 million1 $1.8 million3

Martha Salcudean, chair

$1.52 million $7.01 million

$15.28 million $8.06 million $239,250 Hugh Gordon, board chair NP NP NP Victor Giacomin, board $3.7 million1 chair $3.25 million1 $1.64 million1 Bill McElroy, board chair $3.7 million1 NP $1.24 million1 $1.14 million1 $1.14 million1 $1.05 million1

Trevor James, Ken Neumann, co-chairs

$1.65 million1 $1.65 million $1.62 million $1.6 million $1.57 million $1.96 million

$1.47 million1 $1.47 million $1.44 million1 $1.54 million3 $1.27 million1 $1.27 million $997,9171 $997,917

NP NP NP Tim Casgrain, board chair $185,563 $186,107 $789,915

$970,7591 $970,759

Tim Timberg, chair

$888,726 $1.02 million

$516,103 $244,999 $905,000

$906,746 $1.32 million

Sources: Interviews with charities that responded to requests for information and BIV research. NR Not ranked NP Not provided 1 - 2011 figure 2 - 2011 estimate 3 - 2010 figure 4 - c/o the Victoria Foundation

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Biggest environmental charitable organizations in B.C. RANKED BY | 2012 expenditures Rank '12 Organization

Address

Year founded

Area of focus

Top staff executive

Top volunteer executive

Assets '12 Liabilities '12 Revenue '12

Expenses and distributions '12/'11

1895

Dedicated to protecting and enhancing the quality of life for domestic, farm and wild animals in British Columbia

Craig Daniell, CEO

Marylee Davies, president

$26.52 million $26.52 million

1999

Our mission is to provide uncommon solutions for the common good by leading and supporting actions that foster a healthy environment and just Canadian society

Ross McMillan, president and CEO

Jodi White, board chair

$28.86 million1 $18.14 million1 $28.45 million1 $36.26 million1 $7.07 million1 $16.51 million1

1990

The foundation works through science and education to protect the diversity of nature and our quality of life now and for the future

$12.75 million1 $2.47 million1 $8.7 million1

$8.47 million1 $8.47 million

$4.81 million1 $3.98 million1 $5.88 million1

$6 million1 $6 million

$88.5 million1 $1.12 million1 $5.66 million1 $4.67 million $4.34 million $5.06 million $3.29 million1 $567,5501 $5.17 million1 $47.67 million1 $7.32 million1 $5.31 million1 $3.45 million1 $805,7121 $4.29 million1 $1.56 million1 $951,8471 $1.43 million1 $4.37 million1 $63,2471 $997,1031 $169,4521 $170,0991 $1.11 million1 $355,0161 $284,6191 $1.07 million1 $350,7071 $37,6941 $1.09 million1 $373,0211 $28,8711 $816,6421 $2.46 million1 $95,6031 $771,4241

$5.42 million1 $5.42 million

3

BC Society for the Prevention of Cruelty to Animals (SPCA) 1245 7th Ave E, Vancouver V5T 1R1 P: 604-681-7271 F: 604-681-7022 www.spca.bc.ca Tides Canada Foundation 163 Hastings St W Suite 400, Vancouver V6B 1H5 P: 604-647-6611 F: 866-780-6611 www.tidescanadafoundation.org David Suzuki Foundation 2211 4th Ave W Suite 219, Vancouver V6K 4S2 P: 604-732-4228 F: NP www.davidsuzuki.org

1987

4

Pacific Salmon Foundation 1682 7th Ave W Suite 300, Vancouver V6J 4S6 P: 604-664-7664 F: NP www.psf.ca The Nature Trust of British Columbia 1000 Roosevelt Cres Suite 260, North Vancouver V7P 3R4 P: 604-924-9771 F: 604-924-9772 www.naturetrust.bc.ca Fraser Basin Council Society 470 Granville St 1st Floor, Vancouver V6C 1V5 P: 604-488-5350 F: 604-488-5351 www.fraserbasin.bc.ca Ecojustice Canada Society2 131 Water St Suite 214, Vancouver V6B 4M3 P: 604-685-5618 F: 604-685-7813 www.ecojustice.ca TLC The Land Conservancy of BC PO Box 50054 RPO Fairfield Plaza, Victoria V8S 5L8 P: 250-479-8053 F: 250-744-2251 www.conservancy.bc.ca Ecotrust Canada 425 Carrall St Suite 260, Vancouver V6B 6E3 P: 604-682-4141 F: 604-682-1944 www.ecotrust.ca BC Wildlife Federation 101 - 9706 188 St, Surrey V4N 3M2 P: 604-888-9988 F: 604-888-9933 www.bcwf.bc.ca Shaw Ocean Discovery Centre 9811 Seaport Pl, Sidney V8L 4X3 P: 250-665-7511 F: 778-426-0715 www.oceandiscovery.ca Richmond Animal Protection Society 12071 No. 5 Rd, Richmond V7A 4E9 P: 604-275-2036 F: NP www.rapsociety.com Sierra Club of BC Foundation 733 Johnson St Suite 304, Victoria V8W 3C7 P: 250-386-5255 F: NP www.sierraclub.bc.ca Langley Animal Protection Society (LAPS) 26220 56th Ave, Aldergrove V4W 1J7 P: 604-857-5055 F: 604-857-5057 www.lapsbc.ca Langley Environmental Partners Society 4700 224 Street, Langley V2Z 1N4 P: 604-532-3511 F: 604-534-6593 www.leps.bc.ca Marmot Recovery Foundation Box 2332 Stn A, Nanaimo V9R 6X9 P: 877-462-7668 F: NP www.marmots.org

1971

1 2

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Raincoast Conservation Foundation 2506 Beacon Ave Suite 216, Sidney V8L 1Y2 P: 250-655-1229 F: 250-655-1339 www.raincoast.org WRA Wildlife Rescue Association of BC 5216 Glencarin Dr, Burnaby V5B 3C1 P: 604-526-2747 F: 604-524-2890 www.wildliferescue.ca West Coast Environmental Law 2006 10th Ave W Suite 200, Vancouver V6J 2B3 P: 604-684-7378 F: 604-684-1312 www.wcel.org Critter Care Wildlife Society 481 216 St , Langley V2Z 1R6 P: 604-530-2064 F: 604-532-2009 www.crittercarewildlife.org

1998 19902

Peter Robinson, CEO

Tara Cullis, president and cofounder, David Suzuki, cofounder, James Hoggan, board chair To achieve healthy, sustainable and naturally diverse populations Brian Riddell, president and Terry Lanigan, board chair of wild Pacific salmon for generations to come; to promote CEO collaborative governance of natural resources in B.C. and the Yukon to effectively involve communities in decisions affecting Pacific salmon The Nature Trust is dedicated to conserving British Columbia's J. Jasper Lament, CEO Doug Christopher, board chair biological diversity through securement and management of ecologically significant lands Advancing sustainability through the Fraser Basin, ensuring social David Marshall, executive Charles Jago, board chair well-being supported by a vibrant economy and sustained by a director healthy environment Organization of lawyers and scientists devoted to protecting the Devon Page, executive Cathy Wilkinson, president environment director

Protects important habitat for plants, animals and natural communities as well as properties with historical, cultural, scientific, scenic or compatible recreational value Enterprising non-profit whose purpose is to build the conservation economy in coastal B.C.

Kathleen Sheppard, director of operations

Alastair Craighead, board chair

Brenda Reid-Kuecks, president

Julia Levy, board chair

1969

Voluntary conservation organization of hunters, anglers and recreational shooters

Cheryl Johnson, director of operations

Bill Bosch, president

2005

Our mission is to create advocates for the Salish Sea and for the the oceans of the world through our live exhibits and interactive programs Operates two animal shelters in Richmond

Angus Matthews, executive Nancy Barbour, board chair director

1997 1995

1989 1969 2003 1993 1998

1990

NP

Wilderness and wildlife protections in legislation, monitoring of George Heyman, executive provincial environmental protections, environmental stewardship director education Our mandate is to promote the physical, emotional and NP psychological well-being of companion animals in Langley Watershed stewardship: education and outreach, agricultural stewardship, habitat restoration, community stewardship, wildlife conservation, youth employability skills development Works to save the endangered Vancouver Island marmot from extinction, operating the Marmot Recovery Centre, managing the captive breeding program, assisting the wild population and conducting research Team of conservationists and scientists empowered by research to protect the lands, waters and wildlife of coastal B.C.

Doug McArthur, Doug McArthur NP

Nichole Marples, executive director

Tracy Stobbe, board chair

Viki Jackson, executive director

Jim Walker, board chair

Chris Genovali, executive director

Jane Woodland, board chair

1979

Wildlife rehabilitation and promoting wild animal welfare in urban Glenn Boyle, executive environments director

1978

Provider of legal information, guidance and support for individuals and organizations seeking to protect their water, lands and air Provides short- and long-term care to native mammal species, and through rehabilitation and public education, helps prevent suffering of injured and orphaned wildlife

2011

NP

Craig Fisher, president

Jessica Clogg, executive director

Mark Underhill, president

Gail Martin, founder and executive director

Maureen Binnie, president

$2.39 million1 $115,6531 $1.07 million1 $1.9 million1 $35,4771 $710,3621 $866,900 $363,653 $805,453 $437,4401 $10,7371 $613,2131

$18.06 million $18.06 million

$5.04 million $5.38 million $4.66 million1 $4.66 million $4.21 million1 $4.21 million $2.87 million1 $2.87 million $1.4 million1 $1.4 million $1.31 million1 $1.31 million $1.13 million1 $1.13 million $1.06 million1 $1.06 million $997,5331 $997,533 $813,5911 $813,591 $758,2791 $758,279 $720,1931 $720,193 $694,5781 $694,578 $659,811 $659,811 $562,0161 $562,016

Sources: Interviews with charities that responded to requests for information and BIV research. NR Not ranked NP Not provided 1 - 2011 figure 2 - Originally the Sierra Legal Defense Fund

Their

Future

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