The following policies and guidelines are applicable to all fundraising and sponsorship activities undertaken by the Canada West Foundation and are in accordance with the Canada Revenue Agency (CRA). View the CRA’s fundraising guidance here. ( http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cgd/fndrsng-eng.html )
The purpose of this policy is to identify the various types of gifts to the Canada West Foundation, the general policies applicable to those gifts and the specific guidelines for gift acceptance.
General Policy Statement
The Foundation seeks outright gifts, gifts-in-kind, future gift commitments and sponsorships that are consistent with its mission and acceptable to Revenue Canada. Gifts will generally be accepted from individuals, partnerships, corporations, organizations, government agencies or other entities without limitations unless such gifts originate from a source that is inconsistent with the beliefs, values and mission of the Foundation.
The Foundation accepts gifts in support of its mission and strategic plan. This policy applies to all fundraising activities of the Foundation including endowments, scholarships, planned gifts, campaigns, program-based initiatives, and any arms length bodies conducting fundraising on behalf of the Foundation.
The Canada West Foundation encourages and solicits contributions of cash, securities, and personal and real property, either as outright gifts or through planned gift vehicles in accordance with CRA IT-110R3 -Gifts and Official Donation Receipts. Planned gifts include bequests, life insurance policies, charitable trusts and gift annuities.
The Foundation shall at all times reserve the right to accept or decline a donation. The following conditions justify such an action, although other situations may also occur:
If the gift constitutes a non-gift as per CRA IT-110R3;
There are unusual features to the gift that are contrary with the objectives, values and goals of the Foundation;
- The gift could not be fairly assessed and processed prior to a calendar year-end as per Revenue Canada gift-in-kind guidelines and the donor clearly wants the gift accounted for in that specific year;
- The gift could financially or morally jeopardize the donor and/or the Foundation;
- The gift or terms of the gift are illegal;
- The Canada West Foundation is unable to honour the terms of the gift;
- An appropriate fair market value cannot be determined, or will result in unwarranted or unmanageable expense to the Foundation;
- There are physical or environmental hazards to the Foundation in accepting the offered gift;
- The gift involves false promises on the part of either party;
- The gift could jeopardize the Foundation’s CRA status;
- The gift could improperly benefit an individual;
- The gift could bear liens or caveats that result in unmanageable expense to the Foundation;
- There are conditions attached to the gift or an understanding sought by the donor, which are unacceptable to the Foundation.
In addition to the above terms, the Canada West Foundation will not accept gifts from individuals or entities whose support may be perceived as undermining the Foundation’s nonpartisan status, such as political parties and elected officials. The Foundation will not accept gifts with conditions that seek to determine the results of its research or in some way compromise the independence of its research.
Where appropriate before acceptance, relevant information about the gift shall be ascertained, including a copy of, where appropriate/required an appraisal secured by the donor. The Foundation reserves the right to secure and rely on its own appraisal.
Gift Acknowledgement and Donor Anonymity
Eligible gifts will be acknowledged with a charitable tax receipt with a pre-printed card or personal letter, depending on the level of the gift.
All donors shall be offered the opportunity to remain anonymous. Their wishes will be strictly adhered to and a confirmation of receipt of their request will be acknowledged in writing.
All gifts, regardless of value, form or designated use, should be made payable to the Canada West Foundation. Donors may choose to have their gift fully expended in the current year, endowed into the future or directed to a program or project provided that:
- no benefit accrues the donor;
- the directed gift does not benefit any person not dealing at arm’s length with the donor; and,
- decisions regarding use of the donation within a program rests with the charity, although, where possible, the Foundation will act in concert with and be respectful of the donor’s wishes.
In certain instances, a gift may be declined as a result of the limitations proposed by the donor.
The Canada West Foundation issues official donation receipts in accordance with CRA IT-110R3 Gifts and Official Donation Receipts:
(a) Receipts are only issued for funds that the Foundation will be responsible for spending.
(b) Each receipt is prepared in duplicate, has its own serial number, and will be signed by the CEO or an authorized signature. In instances of donations of property other than cash, the fair market value of the property and the name and address of the appraiser is required.
The Canada West Foundation aims to send out thank-you letters and appropriate documentation (such as charitable tax receipts) to donors within three to five working days of receipt of gifts.
All charitable tax receipts must contain the mandatory elements as listed below, as required by the CRA checklist.
For gifts of cash:
- a statement that it is an official receipt for income tax purposes;
- the name and address of the charity as on file with the CRA;
- the charity’s registration number;
- the serial number of the receipt;
- the place or locality where the receipt was issued;
- the day or year the donation was received;
- the day on which the receipt was issued if it differs from the day of donation;
- the full name and address of the donor;
- the amount of the gift;
- (under proposed legislation) the value and description of any advantage received by the donor;
- (under proposed legislation) the eligible amount of the gift;
- the signature of an individual authorized by the charity to acknowledge donations; and
- the name and website address of the Canada Revenue Agency.
For non-cash gifts (gifts in kind), these additional elements:
- the day on which the donation was received (if not already indicated);
- a brief description of the property transferred to the charity;
- the name and address of the appraiser (if property was appraised); and
- (under proposed legislation) in place of the amount of the gift mentioned above, the deemed fair market valueof the property.
(c) The Foundation and its employees guard against the unauthorized use of official receipts by restricting access to charitable donation receipts.
(d) The Foundation may issue a replacement for an official receipt. The replacement receipt must include a notation confirming it as a replacement for a receipt with the serial number of original receipt. The Foundation will mark the copy of the lost or spoiled receipt as “cancelled.”
“Gift” refers to philanthropic donations, corporate sponsorships, foundation and government grants and any other forms of support deemed acceptable by the Canada West Foundation. A gift “is a voluntary transfer of money or property for which the donor expects and receives nothing of value in return”. Donations to registered charities are eligible for a charitable tax receipt that may be claimed as a non-refundable tax credit on an income tax return.
No benefit of any kind may be provided to the donor or to anyone designated by the donor except where the benefit is of nominal value. The CRA defines nominal value as a fair market value of less than $75 or 10 per cent of the amount of the gift. The Foundation provides donor recognition (unless the donor requests anonymity) based on the total donation amount on its website and in its annual report.
If the Canada West Foundation provides something of value in return for a gift (including admission to a fundraising event) the donor’s tax receipt is reduced by the fair market value of the benefit received. Value is defined as exceeding the CCRA definition of “nominal value.”
The following transactions do not constitute philanthropy and are NOT eligible for charitable tax receipts:
A gift of service. However, if the Foundation pays for the services provided, the service provider may then donate that payment to the charity. In this case, this is considered to be a cash donation and the charity can issue a tax receipt to the donor;
- The purchase of an item or service from the Foundation;
- Sponsorship of Canada West Foundation events or programs for which the donor receives advertising or promotional value above and beyond “nominal value;”
- A gift of debt from a person or partnership, or a share of a capital stock of a corporation that does not deal at arm’s length with the charity.
“Donor” refers to individuals, corporations, organizations or government agencies who, or which, provide support or make gifts to the Foundation.