| Topic: | Financial and Operations |
|---|---|
| Approval Authority: | Board of Governors |
| Approval Date: | November 27, 2023 |
| Effective Date: | January 1, 2024 |
1. Purpose
1.1 Overview
a. This Policy is intended to guide the acceptance of Gifts and Sponsorships made to the University, including how Gifts and Sponsorships are valued and receipted.
b. The University recognizes that its ability to fulfill its Charitable Purposes requires raising Gifts and Sponsorships from a variety of sources. In accepting contributions from these sources, the University will maintain the integrity of its values and freedom of action and will not compromise its mission, vision, values, or its ability to act independently in the fulfilment of its Charitable Purposes.
1.2. Professional Standards
a. No Gift or Sponsorship shall, in any way, compromise the University’s Mission and Vision Statement, constrain academic freedom on campus as described in the University’s Free Speech Statement of Policy, contravene any policy of the University, or reflect negatively on the University’s public image.
b. University representatives engaged in Fundraising will conduct themselves in accordance with accepted professional standards and requirements of the CRA. They will inform, serve, guide, and otherwise assist donors or sponsors who wish to support the University’s activities but will not pressure or unduly persuade donors or sponsors.
c. All University representatives engaged in Fundraising are required to declare to the Division of Advancement any potential conflict of interest, real or perceived, they may have in engaging in Fundraising activities with a specific donor or sponsor or group of donors or sponsors.
2. Scope and Application
2.1 Authorization
a. As delegated by the President, the Vice-President Advancement, is responsible for ensuring that the University’s Gift and Sponsorship acceptance process is compliant with this Policy and that the highest standards of professionalism are followed in the solicitation, review, acceptance, administration, and stewardship of Gifts and/ or Sponsorships, and in working with donors and sponsors.
b. The Division of Advancement is the only department authorized by the University that can issue an Official Donation Receipt, following CRA guidelines.
c. The Division of Advancement, and other units or individuals designated by the Vice-President Advancement, are responsible for the identification, cultivation, solicitation and negotiation of Gifts and Sponsorships and the creation of Gift or Sponsorship agreements with prospective donors and sponsors.
d. The Division of Advancement must be consulted by faculty, staff, students, alumni, volunteers, and other representatives wishing to fundraise for the University prior to preliminary discussions with potential donors.
e. The process for valuation, receipting and documentation of Gifts and Sponsorships will be determined in accordance with guidelines and procedures established from time to time by the Vice-President Advancement.
2.2 Scope
a. The University accepts Gifts and Sponsorships in support of its Charitable Purposes pursuant to the powers granted to it under the York University Act, 1965. The University has established this Policy to cover all charitable Gifts and Sponsorships received.
b. Decisions under this Policy are independent of appointment, admission, curriculum, and other academic and business decisions.
c. This Policy is not intended to be either comprehensive or exhaustive. In situations where the application of this Policy to a particular Gift or Sponsorship is not clear, the staff of the University may review the application of this Policy with the Division of Advancement and University legal and financial advisors where necessary.
2.3 Application
a. This Policy applies to the solicitation and acceptance of Gifts and Sponsorships on behalf of the University, and all other Fundraising activities, and applies to every person, including students, authorized to solicit Gifts and Sponsorships on behalf of the University.
b. Where specified, certain sections of this Policy apply only to Gifts and certain sections apply only to Sponsorships. Where not specified, the balance applies to both Gifts and Sponsorships.
c. For greater certainty, this Policy does not apply to Advertising.
d. In the event of a conflict between the terms of this Policy and the terms of any Gift agreement, Sponsorship agreement or other document creating a Restricted Gift or Sponsorship in effect as of the Effective Date of this Policy, the applicable terms of the Gift agreement, Sponsorship agreement or other document creating a Restricted Gift or Sponsorship shall override the corresponding terms of this Policy, provided that the balance of the Policy that is not in conflict shall continue to be in effect, where applicable.
3. Definitions
When used in this Policy, the following terms shall have the following meanings:
Advertising: the sale or lease of advertising or signage space on University-owned property.
Board: the University’s Board of Governors.
Cause-related Marketing: a Fundraising activity in which the University works with a for-profit collaborator to promote the sale of the for-profit collaborator’s items or services on the basis that a portion of the revenues will go to the University.
Charitable Purposes: the objects and purposes of the University under Section 4 of the York University Act, 1965, as amended from time to time.
CRA: the Canada Revenue Agency.
Cultural Property: artistic, historic, or scientific objects that may fall into a number of categories as determined by the Canadian Cultural Property Export Review Board (CCPERB).
Fair Market Value: generally, the highest price expressed in dollars that a property would bring in an open and unrestricted market, between a willing buyer and a willing seller, both of whom are knowledgeable, informed, and prudent, and who are acting independently of each other.
Fundraising: solicitation of Gifts and Sponsorships from the public or private sector.
Gift: a voluntary transfer of property without valuable consideration to the donor, and includes the following:
Bequest: a provision in a will, directing a Gift of property from an estate to be donated to the University.
Cash Gift: a Gift of cash or near-cash including cheque, money order, and credit card.
Gift-in-Kind: a gift of property other than a Cash Gift. Examples of Gifts-in-Kind include capital property, including real property, depreciable property, personal-use property, a leasehold interest, a residual interest, a right of any kind, a license, securities (such as stocks), a chose in action, and the inventory of a business. A Gift-in-Kind does not include a gift of services.
Expendable Gift: a Gift to be spent in its entirety over a period of time, in accordance with an established schedule or at the University’s discretion.
Endowed Gift: a Gift to be held permanently and invested to produce income to be used for the Charitable Purposes of the University as restricted by the Donor.
Restricted Gift: a Gift that a donor makes to the University for specific purposes consistent with the University’s Charitable Purposes and which restrictions are determined to be acceptable by the University.
Unrestricted Gift: a Gift made by a donor for uses to be determined by the University consistent with its Charitable Purposes.
ITA: the Income Tax Act (Canada), as amended from time to time.
Official Donation Receipt: a receipt that qualifies for charitable tax credits under the ITA.
Pledge: a commitment by a donor to donate a Gift or Sponsorship according to a fixed time schedule.
Policy: this Gift and Sponsorship Acceptance Policy.
Qualified Donee: has the meaning given to such term in the ITA, namely, organizations that can (i) issue Official donation Receipts as appropriate for Gifts they receive from individuals and corporations including but not limited to a registered charity, a registered Canadian amateur athletic association, and a registered Canadian municipality; and (ii) receive gifts from registered charities.
Sponsorship: a mutually beneficial or desirable arrangement in which an external party, whether for profit or otherwise, provides cash and/or in-kind contributions of property or services to the University, and in return may receive public acknowledgement or commercial marketing and/or promotional benefits such as publicity, promotional consideration, and merchandising opportunities. Sponsorships may be provided by way of cash or in-kind contributions.
University: York University, which is a non-share capital corporation under the York University Act, 1965.
4. Policy
4.1 Acceptance of Gifts and Sponsorships
a. Statement of Principles of Acceptance
i. The University welcomes Gifts and Sponsorships from individuals, organizations, corporations, foundations, and governments to help it achieve its academic mission, to enhance its programs and support its students. In considering whether to accept a Gift or Sponsorship, the University will consider the donor’s or sponsor’s intent and direction and whether these are consistent with University objectives and priorities. The University values and will protect its integrity, autonomy, and academic freedom. It will not accept Gifts or Sponsorships when a condition of such acceptance would result in an abridgement of its academic freedom or its integrity. The University will also be guided by the following non-exhaustive set of principles:
a) it must be consistent with the University's Charitable Purposes, academic vision, freedom, mission and core values;
b) it must not present a risk to the University or to its reputation;
c) it must be reasonable for the University to administer or manage;
d) it must not put the University in a conflict of interest;
e) it must not have come from illegal activities;
f) it cannot have terms that may require the University to violate the Ontario Human Rights Code;
g) it cannot give the donor or the donor’s representatives the right to designate a specific or intended person to be the recipient of a donation including an award, lectureship, professorship, chair, or other honorific;
h) it must not inhibit the University from seeking Gifts or Sponsorships from other donors or sponsors or potential donors or sponsors, unless agreed upon by the donor or sponsor and the University; and
i) it must be designed and administered in a manner consistent with legal and accounting requirements.
ii. Acceptance of Gifts and Sponsorships will be done in a manner that respects the responsibility of the Board of Governors for the financial affairs of the University and the responsibility of Senate for academic policy matters including establishing academic programs and awarding scholarships. A Gift or Sponsorship may be subject to review by the Board, Senate or designate, President and/or the Vice-President Advancement or designate prior to acceptance.
b. Determination of Costs of the University
Proposed Gifts and Sponsorships will be evaluated to determine whether the costs to the University associated with receiving or managing the Gift or Sponsorship can be accommodated prudently.
c. Pass Through or Directed Gifts
i. The University does not accept Gifts where the Gift is expressly or implicitly conditional on the University making a gift to another person, club, society, association or organization other than a Qualified Donee.
ii. A donor may not direct that funds be given to specific individuals who are not Qualified Donees, except when the University’s mandate specifically contemplates the type of Fundraising that would benefit those individuals.
iii. The University will not accept Gifts where a donor wishes to direct the funds to a specified person or family member.
d. Pledges
i. All Pledges of Gifts or Sponsorship must have written documentation that contains the following:
a) a clearly specified amount of the Pledge; or a clearly specified identification of the property Pledged;
b) a clearly defined payment/donation schedule; and
c) there must be no contingencies or conditions for fulfilment of the Pledge.
ii. The University may require documentation from the donor or sponsor evidencing that the donor or sponsor intends to fulfill the Pledge.
iii. A Pledge by a donor to donate a Gift is not in itself a Gift until the Pledged property is received by the University. Only fulfilled instalment payment of Pledges of Gifts may be receipted by the University. Unfulfilled instalment Pledge payments do not qualify for an Official Donation Receipt.
iv. If, for any reason, a Pledge of a Gift is not completely realized and it is not possible to come to a new arrangement with the donor, the Division of Advancement must be consulted. The Division of Advancement will notify donors concerning any unfulfilled payments/Pledges of Gifts, where possible. The University will have the authority to redirect any partial funds received towards such other purposes as are, in the University’s discretion, consistent with the original purpose of the Pledge.
e. Anti-Money Laundering and Anti-Terrorism Issues
The University does not accept Gifts or Sponsorships from donors or sponsors who are involved or appear to be involved in terrorist activities, terrorist groups, or financing or facilitating terrorist activities or terrorist groups. All donors, sponsors, Gifts and Sponsorships shall be subject to review under the University’s applicable policies, procedures, or guidelines in place, as they exist from time to time.
f. Confidentiality
The University will keep all information, data, or other communications with donors and sponsors strictly confidential in accordance with its privacy policy in place from time to time. The University reserves the right to disclose such information where it is required to do so by law.
g. No Persuasion or Pressure
The University does not permit any employee, volunteer, or person representing the University to use pressure on a donor or sponsor in securing any Gift or Sponsorship. The University honours donors’ and prospective donors’ or sponsors’ requests to limit the frequency of solicitations, not be solicited by telephone or other technology, and receive printed material concerning the University.
h. No Advice to Donors or Sponsors
The University does not provide any legal, accounting, tax, or financial advice to donors or sponsors. Donors and sponsors are encouraged to seek independent legal, accounting, tax, or financial advice and are responsible for all costs incurred in relation to obtaining such advice.
i. Legal Advice to the University
The University reserves the right to seek legal advice in relation to the negotiation, acceptance, receipting, and management of Gifts or Sponsorships where necessary.
j. No Compensation
The University does not, directly or indirectly, pay finder’s fees, commissions, or percentage compensation based on contributions.
k. Decolonization, Equity, Diversity and Inclusion (DEDI)
The University will raise funds in accordance with its DEDI strategy, which upholds the fundamental belief that everyone should be treated fairly and equitably, with respect and dignity.
l. Use of Name, Logo and Emblems
Any use of the University’s name, logo and emblems by donors or sponsors will require prior written approval of the University.
4.2 Gifts
a. Compliance with Governing Principles
Before accepting a Gift, the University may undertake such due diligence steps as it determines necessary, in keeping with the principles outlined in Section 4.1(a)(i) of this Policy.
b. Unrestricted Gifts
A Gift that is not subject to donor restrictions will be held by the University to be applied towards the Charitable Purposes of the University in the sole discretion of the University.
c. Gifts Subject to Donor Restrictions
i. Restricted Gifts - All restrictions that a donor desires to be imposed on a Restricted Gift must be set out in a Gift agreement where applicable and approved by the University. A donor can choose to make their donation by way of an Expendable Gift or Endowed Gift; provided that for the establishment of a new Endowed Gift, the donation must meet the University’s minimum threshold amount for an endowment, as set by the University from time to time, based on market conditions.
ii. Donor-Advised Funds - A donor who wishes to provide non-binding advice to the University with respect to a Gift will be required to establish the Gift as a donor-advised fund and to enter into a Gift agreement with the University to set out the terms of the Gift and how advice may be provided to the University by the donor from time to time.
iii. Fund Name - Funds may be “named” by the donor, provided that the name is acceptable to the University. Such naming shall be subject to the applicable University recognition policy in place from time to time.
iv. Anonymous Donors - The University will respect and observe the wish of a donor to remain anonymous with respect to Gifts made to the University. The University reserves the right to disclose the identity of the donor and the type and value of the Gift where it is required to do so by law.
d. Where Gift Agreement Required
In accordance with applicable University policies, procedures, or guidelines as they exist from time to time, the University will request donors to enter into Gift agreements with the University to evidence the Gift and set out the terms of any restrictions on the Gift. Gift agreements will typically be required with respect to Restricted Gifts, Endowed Gifts, large Gifts and Gifts of real estate.
e. Execution of Gift Agreements
All Gift agreements must receive the appropriate internal approvals and shall be signed according to the University's Signing Authority Register, unless otherwise directed in accordance with the Policy on Signing Authority.
f. Cash
The following terms apply to acceptance of Cash Gifts:
i. A Gift by credit card is considered to have been made on the date the donor authorized the charge to the credit card.
ii. Gifts received after the end of the year may not be added to the previous year's donations unless the Gift was postmarked in the previous year.
g. Gifts-in-Kind
The following terms apply to acceptance of Gifts-in-Kind, as applicable:
i. The University accepts, at its discretion, Gifts-in-Kind that are in reasonable condition and meet other criteria set out in this Policy. The University reserves the right to display or store the gifted property, use the property for Fundraising purposes, or sell it and apply the proceeds towards the Charitable Purposes of the University.
ii. Costs such as legal fees and appraisals will be the responsibility of the donor, unless otherwise agreed to by the University.
iii. The acceptance of works of art is governed by the University’s Art Acquisition Guidelines, as it exists from time to time.
h. Gifts of Cultural Property
York University may accept gifts of Cultural Property and shall follow the procedures for application, valuation and receipting as prescribed by Heritage Canada, the CCPERB and CRA as they may exist from time to time.
i. Real Estate
The following terms apply to acceptance of Gifts of real estate:
i. All Gifts of real estate shall be evaluated in light of the need for an environmental audit whose cost shall be borne by the donor.
ii. All Gifts of real estate shall require independent appraisal.
iii. The University reserves the right to inspect the property from time to time to assure that its interest is properly safeguarded and will be allowed access to the property upon reasonable notice when requested.
iv. Costs such as title searches, legal fees, appraisals, and real estate fees will be the responsibility of the donor, unless otherwise agreed to by the University.
v. The University reserves the right to retain the property or sell it and apply the proceeds towards the Charitable Purpose of the University.
vi. The Division of Advancement must be consulted prior to the acceptance of any Gifts of real estate.
j. Life Insurance
The following terms apply to acceptance of Gifts of life insurance:
i. When a life insurance policy on which premiums remain to be paid is irrevocably assigned to the University, the acceptance of the assigned policy shall be conditional upon the University not having any liability to the insurance company or to the donor with respect to the payment of future premiums, unless otherwise agreed to by the University in advance. The University shall require assurance from the donor that the donor will continue to make donations towards paying future premiums, unless otherwise agreed to by the University in advance.
ii. The University will only accept Gifts of whole life insurance policies or term to 100 life insurance policies.
iii. The Division of Advancement must be consulted prior to the acceptance of any Gifts of life insurance.
k. Publicly Listed Securities
The following terms apply to acceptance of Gifts of publicly listed securities:
i. Donors shall bear transfer costs when transferring securities to the University. A Gift of publicly listed securities must be received by the University no later than ten (10) business days before the end of the calendar year to be eligible for an Official Donation Receipt within that calendar year.
ii. The Division of Advancement must be consulted prior to the acceptance of any Gifts of publicly listed securities.
l. Private Securities
The following terms apply to acceptance of Gifts of private securities:
i. Donors may give shares of closely held corporate securities to the University in the same manner as publicly traded securities, subject to the following:
a) The University assumes no liability in accepting these Gifts;
b) The Fair Market Value of the Gifts must be able to be easily determined by an independent appraisal carried out in accordance with this Policy;
c) The Gifts must not be subject to a volatile market;
d) The Gifts must be readily converted into cash within a reasonable period of time after having received them and there is no agreement or other obligation in place that may prevent the University from doing so; and
e) The donor deals at arm’s length with both the University and any of the members of the University’s Board of Governors.
ii. Donors shall bear the transfer costs when transferring closely held securities to the University.
iii. The University does not accept Gifts of “non-qualifying securities” (i.e., private company shares of a donor who controls the company and Gifts of debts in respect of a donor’s corporation) where the donor does not deal at arm’s length with the University or with each director of the University.
iv. The University does not accept Gifts of business interests such as partnership interests or units in a limited partnership.
v. The Division of Advancement must be consulted prior to the acceptance of any Gifts of private securities.
m. Bequests
The following terms apply to acceptance of Bequests:
i. Sample Bequest language will be made available to donors and their lawyers to ensure that the Bequest is appropriately documented in the donor’s will.
ii. The University does not provide any legal, accounting, tax, or financial advice to donors in the preparation of their will or become involved in the execution or witnessing of a will in which the University is named as beneficiary. Neither University staff nor the University may be named as executor in a donor’s estate. The University recommends that donors consult legal and tax professional advisors before completing a will.
iii. Donors are invited and encouraged to provide information to the University about their Bequest and, if they so choose, to send to the University a copy of the relevant section of their will. The University encourages donors to disclose their Bequest intentions to the University ahead of time in writing to ensure that the University can carry out their wishes and that the intended Gifts conform to the principles stated in this Policy.
iv. The University may decline the Bequest if, in the discretion of the University, the legal, accounting, or other professional fees associated with administration of the estate exceeds the amount of Bequest. The University may also decline a Bequest involving an estate that has not been properly administered, and its trustees not having received appropriate compensation.
v. If there is a Gift from the estate of a deceased donor that does not meet the principles of this Policy, that decision will be communicated to the legal representative of the estate. Attempts will be made to achieve mutually acceptable terms for the use of the Gift by the University where possible.
vi. Any legal, accounting, or other professional fees borne by the University in receiving the Bequest from the estate of the donor will be deducted from the Gift received.
vii. The Division of Advancement must be consulted prior to the acceptance of any Bequests and during the post-death administration of any Bequests.
n. Registered Retirement Plans
The University accepts donations of registered retirement plans, subject to the following terms:
i. An Official Donation Receipt based on the value of the registered retirement savings plan (RRSP) or registered retirement income fund (RRIF) on the day the transfer will be issued. Should there be tax withheld by the financial institution holding the RRIF or RRSP, an Official Donation Receipt may be issued for the net amount of the donation made to the University.
ii. RRIFs or RRSPs cannot be transferred to a registered charity during the lifetime of the donor and be eligible for Official Donation Receipts.
iii. The Division of Advancement must be consulted prior to the acceptance of any Gifts of registered retirement plans.
o. Other Planned Gifts
The University accepts Gifts through other planned gift vehicles such as charitable gift annuities, charitable remainder trusts and gifts of residual interest.
The following terms apply to acceptance of such planned gifts:
i. It is not the practice of the University to manage charitable gift annuities, but rather to purchase reinsured gift annuities from life insurance companies.
ii. The University will not serve as trustee of charitable remainder trusts.
iii. The Division of Advancement must be consulted prior to the acceptance of any planned gifts.
p. Gifts from other Qualified Donees
Before any Gifts are accepted from other Qualified Donees, the donor charity will be required to advise the University whether the Gift is a Restricted Gift, and if so, to provide the University with full particulars of the restrictions. A Gift agreement may need to be entered into with the donor charity.
4.3 Sponsorships
a. Compliance with Governing Principles
Before accepting a Sponsorship, the University may undertake such due diligence steps as it determines necessary, in keeping with the principles outlined in Section 4.1(a)(i) of this Policy.
b. Where Sponsorship Agreements Required
All Sponsorships shall be documented in writing. In general, Sponsorship over $10,000 will require sponsors to enter into Sponsorship agreements with the University to evidence the Sponsorship and set out the terms of any restrictions on the Sponsorship. Sponsorships under $10,000 will be documented in a letter or invoice with terms and benefits clearly defined.
All Sponsorship agreements must be arranged for a fixed term. All Sponsorship agreements shall be consistent with the size, complexity, and scope of the Sponsorship.
c. Execution of Sponsorship Agreements
Unless otherwise set out in the University’s Signing Authority Register or as directed by the Board, all Sponsorship agreements shall be signed by the Vice-President Advancement of the University and respective Faculty or Department representative, as appropriate, on behalf of the University.
d. Business Expense Deduction
The University does not provide any legal, accounting, tax, or financial advice to sponsors with respect to the deductibility of a Sponsorship as a business expense. Sponsors are advised to seek their own independent legal, accounting, tax, or financial advice.
e. Sponsorship Criteria and Restrictions
i. Unrestricted Sponsorship - A Sponsorship that is not subject to sponsor restrictions will be held by the University to be applied towards the corporate objects of the University at the sole discretion of the University.
ii. Restrictions in Writing - All restrictions that a sponsor desires to be imposed on a Sponsorship must be set out in writing and approved by the University before the Sponsorship is accepted.
iii. No Personal Benefit - The Sponsorship must not confer a personal benefit, directly or indirectly, to any particular University employee or official.
iv. The University’s Obligations - The Sponsorship must not create an ongoing financial obligation for the University beyond the term set out in the Sponsorship agreement or otherwise as agreed to in writing by the University. The Sponsorship must not interfere with existing contractual obligations of the University.
v. Benefits to the Sponsors - Benefits to the sponsors are limited to those expressly stated in the Sponsorship agreement or otherwise as agreed to in writing by the University. Benefits to the sponsor are to be commensurate with the size and scope of the Sponsorship. The Sponsorship must not result in, or be perceived to result in any competitive advantage, benefit, or preferential treatment for the sponsor outside of the Sponsorship agreement.
vi. Comply with Law - Sponsorships shall conform to all applicable federal and provincial statutes, and to all applicable University by-laws, policies, and practices.
vii. Sponsored Property - The Sponsorship must not unduly detract from the character, integrity, aesthetic quality, or safety of the sponsored property or unreasonably interfere with its enjoyment or use.
viii. No Endorsement - The University does not endorse or sanction the products, services, or ideas of any sponsor. There shall be no actual or implied obligation to purchase the product or services of the sponsor. Sponsors may not imply that their products, services, or ideas are endorsed or sanctioned by the University.
ix. No Access to Personal Information - Sponsors may not have access to personal information about an identifiable individual held by the University.
x. Naming - Naming of a program/event, physical space, etc. may be associated with Sponsorships, provided that the name is acceptable to the University. Such naming shall be subject to naming requirements set out in this Policy or the applicable University recognition policy.
4.4. Receipting and Acknowledgment
a. Issuance and Management of Charitable Receipting
Only the Division of Advancement is authorized to issue Official Donation Receipts. Management of Official Donation Receipting rests with the Gift Processing team within the Advancement Services and Operations unit of the Division of Advancement.
Official Donation Receipts shall be issued and managed by the University in accordance with the requirements of the ITA and the CRA, as well as any applicable University policies, procedures, or guidelines, as they exist from time to time.
b. Inquiry
The University reserves the right to inquire of its donors concerning circumstances surrounding the Gifts that may be relevant for the purpose of the issuance of Official Donation Receipts and in determining the correct eligible amount for the Gift.
c. Cash Gifts
Official Donation Receipts will be issued for Cash Gifts based on the amount received. Year-end Cash Gifts will qualify for receipts in the year in which they are post marked.
d. Gifts-in-Kind: Fair Market Value
i. An Official Donation Receipt will be issued for the eligible amount of the Gift-in-Kind on the date of donation based on the Fair Market Value of the property. The Fair Market Value of a Gift-in-Kind as of the date of the donation must be determined before an amount can be recorded on an Official Donation Receipt. If the Fair Market Value of an item cannot be reasonably determined, an Official Donation Receipt will not be issued. In some circumstances, Fair Market Value will be “deemed” in accordance with the ITA.
ii. Where the Fair Market Value of a gifted/sponsored property (e.g., Gifts-in-Kind) must be determined, generally an independent third-party appraiser will be engaged. A staff member of the University may be engaged to conduct the appraisal in certain circumstances.
iii. The appraiser will be required to provide an appraisal report to the University. A conditions report may also be required where the Gift is a work of art of Canadian Cultural Property. The report must include an estimate of the Fair Market Value of the property as of the date of donation.
iv. All appraisals (and conditions reports for CCPERB) shall be at the cost of the donor or sponsor, unless otherwise agreed to by the University. The University reserves the right to obtain, at its expense, its own appraisal in addition to the donor’s or sponsor's appraisal.
e. Split-Receipting Rules
The University is required to comply with applicable requirements under the ITA and the administrative requirements of the CRA in relation to split-receipting in issuing Official Donation Receipts to donors. Non-compliance with these requirements may jeopardize the University’s charitable status.
f. Minimum Amount
An Official Donation Receipt will only be issued where the eligible amount of the Gift exceeds twenty dollars ($20.00).
g. No Official Donation Receipt to Qualified Donees
Official Donation Receipts will not be issued for Gifts received from other Qualified Donees, e.g., charitable foundations that are Qualified Donees. However, the Gift may be acknowledged by way of a letter or written acknowledgement that states that it is not an Official Donation Receipt for income tax purposes.
h. Donations for Research
Depending on the circumstances surrounding the donation, a donation for research purposes may take the form of a Gift. An Official Donation Receipt may be issued to a donor if the donation meets the criteria of the ITA and CRA. Where the donation is not eligible for an Official Donation Receipt, the donation may be acknowledged by way of a letter or written acknowledgement that states that it is not an Official Donation Receipt for income tax purposes.
i. Donations of Services, Space rentals, and Loans
Gifts of services, as well as space rentals, and loans do not qualify for an Official Donation Receipt. However, an Official Donation Receipt can be issued for Gifts of services under certain conditions as permitted by the CRA. The Division of Advancement must be consulted for all space rentals, loans and for Gifts of services.
j. Publicly-listed securities
Official Donation Receipts will be issued for Gifts of publicly traded securities for the eligible amount of the Gift based on the Fair Market Value of the securities, in accordance with the requirements of the ITA and the CRA.
It is the University’s general practice to sell securities immediately upon receipt. The University reserves the right, on a case-by-case basis, to sell securities over a period of days, weeks, or months when it is determined that the regular trading volume is not sufficient to absorb the securities without significantly and adversely affecting their value.
The University also reserves the right to refuse to accept a gift of securities that has negligible value in normal and active market trading.
k. Planned Gifts
Gifts such as life insurance policies, gifts of residual interests, charitable remainder trusts, charitable gift annuities, gifts of retirement benefits, and other planned gift vehicles will be valued and receipted using the formulas employed by recognized bodies such as the Canadian Association of Gift Planners and approved by CRA as they may from time to time change and in accordance with any requirements of the ITA and the CRA.
l. Anonymous Gifts
The University may issue Official Donation Receipts for anonymous Gifts if the donor establishes an agency or trust agreement to make the anonymous Gift to the University.
m. Sponsorship
Sponsorship constitutes an advantage to the sponsor. Consequently, a Sponsorship is not a Gift and does not qualify for an Official Donation Receipt.
n. Part Gift and Part Sponsorship
Where a contribution consists partly of a Gift and partly of a Sponsorship, the portion of the contribution that constitutes a Sponsorship will not be eligible for an Official Donation Receipt. The portion of the contribution that constitutes a Gift will be treated as a Gift, and an Official Donation Receipt may be issued for such portion in accordance with ITA and CRA criteria. In practice, it is difficult to calculate the value of the advantage for Sponsorship. If the value cannot be calculated, the University cannot determine the eligible amount of the Gift, and accordingly cannot issue the business an Official Donation Receipt for a contribution that consists partly of a Gift and partly of a Sponsorship.
o. Gift/Sponsorship Acknowledgements
The University will provide an acknowledgement letter for all Gifts and Sponsorships made to and accepted by the University. Where appropriate, Gift acknowledgements may be accompanied by an Official Donation Receipt.
4.5. Declining and Returning Gifts/Sponsorship
a. Declining Gifts or Sponsorship
The University reserves the right to decline a Gift or Sponsorship, as applicable, in any circumstance.
b. Returning a Gift or Sponsorship
In general, once a Gift has been received by the University, the property becomes the University’s asset and cannot be returned to the donor. Unspent or uncommitted Sponsorship funds can be returned to the sponsor in accordance with the terms of the Sponsorship agreement.
4.6. Cause-Related Marketing
a. Principles for Entering into Cause-related Marketing Arrangements
i. All Cause-related Marketing arrangements will require review and approval by the Vice-President Advancement or designate prior to acceptance and will require a written agreement.
ii. The University will not issue an Official Donation Receipt for a donation made as a result of Cause-related Marketing if the value of the advantage the for-profit partner receives is more than 80% of the amount Gifted to the University, or if the value of any advantage the donor received as a result of the Cause-related Marketing cannot be calculated.
4.7. Donor Recognition
a. General
The University has a donor-centered approach to its Fundraising programs. It is the University’s policy to provide appropriate public recognition for all Gifts and Sponsorships contributed to the University where appropriate.
b. Recognition Principles
i. Recognition is based on Gift and Sponsorship levels set by the Division of Advancement. Specific recognition requirements requested by a donor or sponsor will be assessed on an individual basis and will be subject to the CRA requirements and the University recognition policy as it exists from time to time.
ii. Public recognition in printed materials or in public space outside of the University will be mutually agreed upon between the donor or sponsor and the University.
iii. In all matters involving recognition, the interest and integrity of the University must take priority. The University reserves the right to revoke any recognition or naming rights if, in the reasonable opinion of the University, the recognition or naming right may cause prejudice, impair the image or reputation of the University or embarrassment to the University or as otherwise provided in the University recognition policy as it exists from time to time.
c. Naming Principles
The University welcomes the opportunity to honour those who have rendered outstanding service to the University or to honour individuals who have made generous Gifts to the University through naming in accordance with the applicable University policies, subject to donor anonymity requests as set out in Section 4.2(c)(iv) of this Policy. Where applicable, such naming may be addressed in the Gift or Sponsorship agreement provided that it shall be subject to the applicable University policies in place from time to time.
4.8. Investments and Disbursement
a. Investment
The investment and management of each fund and its income from time to time, if any, will be in accordance with the University’s applicable policies, procedures and/or guidelines, as they exist from time to time.
5. Roles and Responsibilities
The Vice-President Advancement is responsible for:
a. the implementation of this Policy and may establish procedures, and guidelines pursuant hereto from time-to-time regarding accepting or declining a gift or sponsorships, receipting and acknowledgement of gifts and sponsorships, recognition of donors, conflicts of interest, and any other matters set out in this Policy;
b. ensuring that the University’s gift and sponsorship acceptance process is compliant with this Policy and that the highest standards of professionalism are followed in the solicitation, review, acceptance, administration, and stewardship of gifts and/or sponsorships, and in working with donors and sponsors;
c. issuing Official Donation Receipts, in accordance with the requirements of the ITA and the CRA, as well as any applicable University policies, procedures or guidelines, as they exist from time to time;
d. advice on the application of this Policy to a particular Gift or Sponsorship, in consultation with University legal and financial advisors where necessary;
e. the identification, cultivation, solicitation and negotiation of Gifts and Sponsorships and the creation of Gift or Sponsorship agreements with prospective donors and sponsors;
f. advising faculty, staff, students, alumni, volunteers, and other representatives wishing to fundraise for the University prior to preliminary discussions with potential donors;
g. receiving declarations from all University representatives engaged in Fundraising of any potential conflict of interest, real or perceived, they may have in engaging in Fundraising activities with a specific donor or sponsor or group of donors or sponsors;
h. advice on the acceptance of any Gifts of Cultural Property, real estate, life insurance, bequests, publicly listed securities, private securities, and registered retirement plans, space rentals, loans and other gifts of services;
i. advice on Pledges of a Gift when it is not possible to come to a new arrangement with the donor, and notifying donors concerning any unfulfilled payments/Pledges of Gifts;
j. setting of Gift and Sponsorship levels and advising on recognition requirements requested by a donor or sponsor, advising on Gifts and Sponsorships, and approval of all Gift and Sponsorship agreements unless otherwise set out in the University’s Signing Authority Register or as directed by the Board; and
k. advice and approval of all Cause-related Marketing arrangements prior to acceptance.
6. Review
The Vice-President Advancement is responsible for the review of this policy every five years at a minimum.
| Legislative History: | Approved by External Relations Committee 2023/11/17; Approved by the Board of Governors 2023/11/27 |
|---|---|
| Date of Next Review: | November 2028 |
| Policies Superseded by this Policy: | Acceptance of Gifts Policy (Legislative history: Approved by the Board of Governors: 1995/06/26; Date Effective: 1995/06/26, Amended: 2006/12/04, Amended: 2018/05/01) |
| Related Policies, Procedures and Guidelines: |