Paul began by distinguishing the Rotary Club from the Charitable Trust. While the club itself is an incorporated society under the Societies Act of Nova Scotia, the Charitable Trust is not incorporated. Instead, it is a relationship between people and property, where trustees are responsible for managing the property according to specific terms and conditions. These trustees hold a fiduciary obligation, one of the highest levels of legal responsibility, to manage the trust's assets appropriately.
The Charitable Trust was established many years ago by the former Rotary Club of Halifax. Although the exact terms of the original trust were not documented formally, oral evidence from involved members has provided guidance. During the merger process of Halifax Harbourside and Halifax, Paul worked to articulate and document the trust's objectives, creating a new deed of trust with broad terms to ensure clarity and compliance with modern standards.
Trustees and Their Responsibilities
Paul explained that the trustees are appointed by the club's executive committee for specific terms, typically two years. The trust deed outlines the succession plan for trustees, ensuring a continuous and responsible management of the trust's assets. The trustees' primary role is to manage the trust's property in accordance with the specified charitable objectives, while also adhering to the Canada Revenue Agency (CRA) regulations.
Benefits of the Charitable Trust
One of the key benefits of the Charitable Trust is its ability to raise funds through donations that qualify for charitable tax receipts. This capability makes the trust an essential tool for funding the club's charitable activities. Paul emphasized that the trust can support the club's projects that meet both CRA requirements and the trust's objectives, providing a significant advantage in terms of fundraising.
Examples of Fundraising and Spending
Paul provided examples of how the trust can be utilized for fundraising. Bequests, where individuals leave money to the trust in their wills, are one such method. These donations can reduce the tax burden on the donor's estate, making it an attractive option for planned giving. Additionally, the trust can coordinate with the club to fund specific charitable projects, ensuring that donations are used effectively and in alignment with the trust's purpose.
Relationship Between the Club and the Trust
While the club and the trust are separate entities, their relationship is symbiotic. The club's executive committee appoints the trustees, who then manage the trust's assets with a focus on supporting the club's charitable initiatives. This collaboration allows the club to undertake projects that might otherwise be financially challenging, with the trust providing necessary funding and tax benefits.
Challenges and Considerations
Paul acknowledged that managing the trust requires formalities such as annual CRA filings and maintaining separate bank accounts. However, the benefits of having a charitable trust outweigh these challenges. By leveraging the trust, the club can enhance its fundraising capabilities and support a wider range of charitable activities.
Conclusion and Call to Action
Paul concluded by encouraging members to consider the Charitable Trust as a valuable resource for achieving the club's goals. He invited questions from the members, ensuring a thorough understanding of how the trust operates and its potential benefits.
Paul Radford's presentation provided an enlightening overview of the Charitable Trust, highlighting its importance in supporting the Rotary Halifax Harbour's mission and expanding its impact through effective fundraising and responsible management.
