1. PURPOSE

1.01        This Statement of Policy sets out guidance related to the MakeWay ChangeCapital fund.

2. SCOPE

This policy applies to all ChangeCapital donors and MakeWay. 

3. POLICY

3.01        Donations to the ChangeCapital fund will placed in impact investments as approved by the MakeWay Investment Committee.

3.02        The minimum donation amount to the ChangeCapital fund is $50,000 CAD.

3.03        Donations to the ChangeCapital fund are eligible for a charitable tax receipt at the time the donation is made. 

3.04        The target term for ChangeCapital investment portfolio is approximately 10 years.

3.05        Management and administration fees of 1.75% of the portfolio balance will be charged to the ChangeCapital fund on an annual basis.

3.06        At the end of the investment term (i.e. 10 years) the original donated capital amount plus earned interest and distributions will be available for the donor to grant to a qualified donee based on the donors grant recommendation. 

3.07        Earned income and distributions will be allocated to individual ChangeCapital donors, at the end of the term, based on the timing of the original donation and the relative percentage of the donation with respect to the total fund balance over time. For any donors holding a separate donor advised fund at MakeWay the earned income and distributions can be transferred to the donor’s separate donor advised fund.

3.08        MakeWay will invest its own working capital in the ChangeCapital fund in the event that there are insufficient ChangeCapital donor funds available to meet the required investee capital calls.

3.09        MakeWay reserves the right to take the portion of any distribution paid that is related to it’s proportionate working capital investment into operating income or to re-invest in the ChangeCapital fund at management’s discretion.

4. RESPONSIBILITY

4.01        It is the responsibility of the Finance department to calculate the annual management and administrative fee.

4.02        It is the responsibility of the Finance department to track the relative percentages of donor funds over the lifetime of the fund to determine appropriate earned income and distribution allocations for donors.

4.03        It is the responsibility of the Finance department to prepare the annual financial statement for the ChangeCapital fund.

4.04        It is the responsibility of the MakeWay Marketing & Communications department to prepare qualitative reports regarding the social and environmental returns of the ChangeCapital fund portfolio.

5. DEFINITIONS

6. REFERENCES 

 Change Capital Info Sheet:  https://makeway.box.com/s/ulwqefzshvlbeeumevnp859wu5kogq9z

 Change Capital Term Sheet: https://makeway.box.com/s/zuabsjlhgb4si6vramflthi2eifgy405