5d. Treasurer's Report

[Lloyd Lombard]

Vlad is correct. The loss of the CFC's chartitable tax status has taken away a major incentive to donate to the Foundation, however, I should add that very little money ever did come in as donations. The vast majority of revenue always has been from Life Memberships.

Charitable status no doubt encourages donators as they get some benefit from income tax relief and not only the satisfaction of donating to a cause they believe in. In this age of baby-boomers where some of our older players are "well-off", it seems to me that estate planning may include donations, especially those which permit tax deductions. In my view, the chess foundation should be registered as a registered charitable foundation. I'm in the process of drafting something for Nova Scotia. The essence of it is that any monies placed in the foundation is to remain within the foundation with only income being available for distribution (less expenses). This means that any and all donations remain "in the pot" to generate income for future generations. Expenses are paid from the income generated and only the remainder is available for distribution. Perhaps the CFC isn't getting much in terms of donations but it seems to me that if we provide tax relief "and" market the foundation properly, the foundation may be able to generate future donations.