President's Message

I am pleased to report that the Community Foundation of the North Okanagan has enjoyed another successful year. The Foundation continues to grow and I believe is positioned to play an increasingly positive role in addressing the charitable needs of the North Okanagan community.

In 2007 the Foundation distributed charitable grants totaling $328,018. Funds available for grants in 2008 have increased 29% to $423,873. Grants made since the inception of the Foundation now total $3,425,000.

Endowment funds under management are currently $8.7 million, continue to grow and with an improving investment outlook, should soon break through $9 million. Charitable contributions were down in 2007 but I am happy to report contributions are again accelerating, over $510.000 in contributions being received this year to date.

Some donors are taking advantage of recent changes to the income tax rules which now provide substantial tax benefits in donating shares or securities for which the donor has a substantial capital gain. For further information on this subject I recommend that you visit the web site www.donateshares.com.

A trend which particularly pleases me is the increasing use of the Foundation by many of Vernon’s agencies and organizations for the investment of their funds. The Foundation takes very seriously its stewardship of funds on behalf of these agencies. Our investment goal is to achieve an annual investment return of 8% while maintaining a conservative investment strategy. Of the 8% investment return, 5% is paid out in grants, 1% is allocated to administrative expense and the remaining 2% is added back to each fund as an inflation hedge.

Earlier this year our Executive Director, David Fletcher attended a conference of Community Foundations in the $2 million to $20 million category. Of the 33 foundations from across Canada in attendance, the Community Foundation of the North Okanagan was the only Foundation paying out annually a return of 5% on its funds under investment, most foundations paying out 3.5% to 4%. Our Foundation over the past 5 years has achieved an annual average investment return of 9.1% and has paid out grants of 5% of funds under investment during those years. It is our expectation to continue to pay out 5% of funds under investment each year in the future.

I would like to thank our Board of Directors, our Executive Director and volunteers for their continued contribution to the Foundation and its development.

Finally and most importantly on behalf of the Foundation our sincere thank you to the many generous donors who enable the Foundation to grow and better address the charitable needs of the North Okanagan.

Keith Allan, President