CHARITIES

We understand – your charity works hard at attracting donors, and you need a portion of the funds raised to be available with short-term liquidity, and another portion to be invested for the long-term.

Your responsibilities include:

  • investing the funds in a prudent and secure way
  • demonstrating good financial management
  • not exposing your investments to unnecessary risk, while also having the money grow for the future

You have important work to do with your charity and you would like to have the guaranteed investment and security of GICs, along with the highest rates, without having to spend a considerable amount of your time shopping around for this solution.

We survey a broad spectrum of the Canadian GIC marketplace so you don’t have to.

Working with GICPlus give you:

  • Access to superior rates from a broad spectrum of Canadian financial institutions – typically higher than the big 5 banks
  • Efficient use of your time – we shop the GIC marketplace for you, manage the paperwork to multiple financial institutions, and assist with re-investment of funds at time of maturity.
  • Knowledge - that due diligence has been done to meet your charity’s specific investment policy
  • A GIC investment plan - that meets your objectives for short-term liquidity needs and longer-term compound growth.

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Case Study - A Charity's Need for Guaranteed, Long-Term Growth

This team of dedicated community leaders had done a solid job of raising the profile of their charity and attracting significant donors. Part of the money raised is to remain invested long-term so the charity can have financial stability and a regular source of income to help those it serves.

SCENARIO

This team of dedicated community leaders had done a solid job of raising the profile of their charity and attracting significant donors. Part of the money raised is to remain invested long-term so the charity can have financial stability and a regular source of income to help those it serves.

The Board of Directors needs to demonstrate good financial management with the growing endowment and not expose it to risk while having the money continue to grow for the future.

SOLUTION

Our GICPlus advisor met with the investment committee of the charity.

She gained a clear understanding of the current investment policy and the objectives of the charity for short-term liquidity and longer-term compound growth.

The GICPlus advisor also helped create a simple and clear summary of the investment approach so the charity could re-assure donors their money was being prudently invested so it would grow and be available to help those the charity serves for many years to come.

The majority of the charities funds had been sitting in a low yield cash account and there were several GICs that were invested at standard retail rates through the charity's bank.

Some of the money was invested in low volatility mutual funds.

A new portfolio of GICs were created with the proceeds of the cash account and the existing GICs.

The new GICs were placed with 3 different financial institutions for increased safety.

The GICs had different maturity dates and income options

RESULT

A laddered portfolio of GICs was created so the charity had liquidity if they quickly needed cash, monthly income for ongoing expenses and compound long-term growth that is guaranteed.

The portfolio of GICs matched their Investment Policy and helped create a predictable endowment for the future.

The Board of Directors could confidently reassure donors that their money was being responsibly managed in a protective strategy while achieving the highest guaranteed rates available in Canada.

Click here to see the benefits of a laddered GIC portfolio.