For private foundations where an individual, let's say Bill Gates, decides to put aside his money, he receives a tax receipt today, and the foundation is now set up...is that a tax incentive that I'm worried about? No, it is not. We've seen tax schemes run in both public foundations and in operating charities, so we see no distinction. The scoundrels get in and they are sophisticated, and they're not really worried about the legalese of it.
One of the things I would consider, if you are concerned about the money being put away today and the tax receipt issued today, is I would look at increasing the payout ratio. Currently, the payout ratio I believe is 3.5%. Canada has one of the lowest payout ratios in the developed world. That means that less money has to come out of that foundation into an operating charity each year. The U.S. is at 5%; other countries are looking at that tax issue and are looking to raise the payout ratio. It would mean that the money would be released faster.