How to Start a Club Fund

The process for establishing a new club or award endowment fund is as follows:

Start a New Fund 20220107

1. A Memorandum of Agreement (MOA) is prepared and signed between the Canadian Rugby Foundation and the Club. This outlines the obligation of both parties. The basic points of the standard may include:

  • the funds are kept in trust for the purposes outlined in the MOU. These must be rugby related, i.e., student awards, funds for coaching, junior development etc.
  • as the funds accumulate interest is paid on an annual basis. This is currently set at 3.5 percent for assets under $100,000 and 4.0 percent for assets over $100,000. We have always met this target though if there is an extraordinary downturn in the market this rate of return may be reduced.
  • The capital of the fund cannot be withdrawn. Occasionally clubs want to engage in a capital campaign for new facilities. We are not set up for that purpose but if there is also an endowment element i.e., 50 percent of funds are directed into a permanent endowment fund, then it may be entertained. Several clubs have established a separate “Capital” Fund with an MOA that excludes the restriction of asset withdrawals for the purposes of raising funds for a major capital project such as a new field or clubhouse.
  • One or two people are appointed as Fund Representatives to liaise with the Canadian Rugby Foundation and direct the annual payout of interest, although many clubs choose to reinvest the interest in order to accelerate the Fund’s growth.
  • A “Schedule A” that describes the specific purpose and other details of the Fund.

As of December 2021, the standard MOA template (funds under $1 million) is as follows:

MOA Standard Template 20211220

2. All investments funds are pooled and invested by an institutional manager and overseen by our internal Investment Committee and Board of Directors ‎in accordance with the terms of our investment policy.

3. Tax receipts are issued for all donations over 25 dollars. The website is set up with the club name as a drop down menu choice and donors can donate online through Canada Helps or donate directly to the Foundation by cheque or bank wire. Donations can be set up as a monthly subscription and this has proven to be a successful method for many clubs as monthly subscribers have on average donated greater cumulative amounts and over a longer tenure.

4. Our financial statements, investment policy, board of directors, AGM minutes, and By-laws are available online.

5. Our organization is composed of volunteers. We have no employees and contract out accounting and certain administration services. This enables us to keep our administration and other costs to less than 1 percent of our capital per year.

We hope this is helpful and will provide some guidance. We look forward to assisting you with the startup of a new Canadian Rugby Foundation fund.

Mike Holmes , Chair, Canadian Rugby Foundation
Jeff Chan , Executive Director, Canadian Rugby Foundation