Community Foundation of Lethbridge and Southwestern Alberta Act

Summary#

• This bill updates and replaces the law that sets the rules for the Community Foundation of Lethbridge and Southwestern Alberta.
• It keeps the foundation running, clarifies who it serves, and modernizes how it can manage and invest money.
• It sets clear rules for the board of directors, donor wishes, audits, and how funds can be used.

Key points:

• Keeps the foundation and all its property in place, but replaces the old 2010 law with a new one.
• States the foundation’s purpose: to support charitable causes that benefit people, mainly in Southwestern Alberta.
• Lets the board invest funds using a “prudent investor” standard (careful, balanced investing) and hire outside managers.
• Sets a self-appointing board of at least 9 local residents, with term limits (up to 6 years total) and no pay (expenses allowed).
• Clarifies how donor wishes work, including when the board may adjust them to match a donor’s intent.
• Requires an annual independent audit and allows reasonable admin costs to be spread across funds.

What it means for you#

• Donors

  • You can give money or property to the foundation and state your wishes. If you create a legal trust with clear terms, the board must follow those terms.
  • If you give general directions (not a formal trust), the board must try to follow your intent. If your directions are unclear or no longer workable and you are not available, the board may adjust to best match your intent.
  • If you don’t give directions, your gift is treated as long‑term (meant to last) unless tax rules require payouts.
  • Gifts made under past names of the foundation still count for the current foundation.
  • The foundation may charge reasonable admin costs to your fund.

• Local charities and nonprofits

  • You can apply for grants for education, recreation, culture, and other charitable work, mainly in Southwestern Alberta.
  • The foundation may also manage and invest your organization’s funds by agreement (pooled “common trust” options are allowed).
  • The board can lend money to organizations advancing its charitable aims, with or without interest and with terms it sets.

• Residents of Southwestern Alberta

  • The foundation’s focus remains on your region, though it can fund work outside the region when it fits its charitable purpose.
  • Grants may support local programs, facilities, and services that improve community well‑being.

• Board members and candidates

  • Directors must live in Southwestern Alberta, be at least 18, and meet basic suitability rules (for example, not bankrupt).
  • Terms are 3 years, renewable once (maximum 6 years total). Directors are unpaid but can be reimbursed for reasonable expenses.
  • The board can remove a director for repeated absences, conflict of interest, serious misconduct, or incapacity.
  • The foundation must indemnify (protect) directors who act honestly and in good faith. It may buy liability insurance.

• Investors and financial firms

  • The board can invest in a wide range of assets, delegate investing to qualified managers, and pool funds to lower costs.
  • The board must review outside managers at least twice a year and follow prudent investing standards.

Expenses#

Estimated public cost: minimal to none.

• The bill does not authorize government spending; it governs a private community foundation.
• The foundation covers its own operating and audit costs and may charge reasonable administrative fees to funds.
• No publicly available information on any new public expenditures.

Proponents' View#

• Modernizes an older law so the foundation can invest responsibly, hire experts, and manage pooled funds, which can grow endowments and grant dollars.
• Sets clear board rules, term limits, and audits to support good governance and transparency.
• Clarifies donor directions versus binding trusts, helping the board honor donor intent even when situations change.
• Allows funds to be granted or managed across a wide area and, when needed, beyond the region to maximize charitable impact.
• Protects volunteer directors with indemnity and insurance so qualified people are more willing to serve.

Opponents' View#

• The self‑appointing board may reduce public accountability; there is no requirement for member elections or government appointments.
• Broad investment and borrowing powers could increase risk, even with “prudent investor” rules and reviews.
• The ability to adjust donor directions (when not a formal trust) may worry donors who want strict control over how gifts are used.
• Administrative fees charged across funds could reduce amounts available for grants, especially for small funds.
• Funding outside Southwestern Alberta, while allowed, may dilute resources that donors expect to stay local.