Clearview sets up endowment fund
Clearview councillor Connie Leishman is hoping a new endowment fund will one day replace the municipality’s community assistance grant program, but it will take a long time.
“That would be my hope, that the money doesn’t come out of taxation,” she said.
Every year, council divvies up a set amount of money to township organizations that apply for grants. Last year, $23,000 was earmarked for community assistance grants and $22,800 was given out in 2015.
It was stated the endowment fund would need more than $1 million before it would see that kind of returns.
Council voted Oct. 24 to direct the mayor and clerk to enter into an agreement with the Barrie Community Foundation to establish and manage the Clearview Community Endowment Fund and contribute $1,000 annually from Community Assistance Grant pool.
According to Barrie Community Foundation, Endowment funds are “forever” funds, meaning that the original capital contributed as well as subsequent donations to the fund are never encroached upon or spent but continue to grow over time. A portion of the investment income generated from the funds are granted out on an annual basis to support the causes the funds were set up to support.
In Clearview’s case, the annual payouts would be in control of Clearview Township for community assistance.
Leishman said when she started looking into it, she didn’t realize Mayor Christopher Vanderkruys is a Barrie Community Foundation board member. Vanderkruys said he sits on the board as a representative of Barrie Public Library and helped found the organization in 2005.
She said she recommends going with Barrie Community Foundation, rather than another foundation, because she considers Clearview to be part of the greater Barrie community.
The hope is that people who have a connection to Clearview will want to donate to the endowment fund, knowing their donation will benefit the community for as long as the fund exists.
She said people are more likely to donate to a foundation than a municipality.
“Clearview council currently has the ability to collect donations for a Clearview Community Foundation. That may be the case but donors are very reluctant to make donations to municipalities since they are already paying taxes to them,” reported Leishman. “I am not aware that there is any municipality in Canada that has created an internal foundation. Community foundations are established as separate legal entities, non-profit corporations and registered charities.”
She said she has heard from people who do not agree with the community assistance grants, which are funded by the taxpayer.
“I think [the fund] will grow faster. People will be more inclined to give knowing it won’t be used one-off, but in perpetuity,” said Leishman.
Councillors Kevin Elwood and Thom Paterson voted in opposition to the establishment of the fund.
Barrie Community Foundation takes one per cent of returns as a fund management fee.
