Donation Policy

Donation Policy

Category: Advancement

Number:
5.05

Responsibility:
Director, Development
and Donor Relations

Approval:
Board of Trustees

Approval Date:
June 24th, 2004

Issue Date:
May 2004, Revised June 2005, Revised February
2006, Revised November 23, 2006,
Revised June 25, 2009, October 2012

Next Review:
June 2015

INTRODUCTION
Brock University has flourished through the commitment and generosity of a growing circle of supporters. This support has allowed the University to fulfill its mission of teaching, research and service to the community. To administer and steward these donations in an appropriate manner, the University has adopted the following donation policy.

PURPOSE
The purpose of this policy is:

  • To clarify who may solicit donations on behalf of the University.
  • To define the various roles and responsibilities of the parties involved in the donation process.
  • To identify the circumstances under which a charitable tax receipt or business receipt will be issued.
  • To ensure that the University operates in accordance with Canada Revenue Agency (CRA) with respect to all donations.
  • To outline when gifts will be accepted on behalf of the University.
  • To establish gift valuation criteria.
  • To provide guidelines on gifts with specific terms of reference.

SCOPE
This policy applies to all donations to Brock University and all revenue related to philanthropy. In addition, the Friends of Brock University Inc. operates in accordance with this and all other Brock Development and Donor Relations policies.

POLICY
Professional and successful fundraising requires organization and discipline to ensure that potential donors are being approached with respect for approved projects at the right point in the donation cycle and not continually and concurrently solicited by various entities within the University. Therefore, while faculty and staff are encouraged to cultivate potential donors, no person shall solicit donations on behalf of the University unless authorized to do so by the Office of Development and Donor Relations through the Prospect Management Guidelines.

 The Office of Development and Donor Relations is responsible for:

1.  Coordinating the solicitation of donations through the Prospect Management Committee.
2.  Coordinating the efforts of all areas of the University to assess a gift's acceptability.
3.  Administering (e.g. receiving, valuing, recording, depositing) all donations.
4.  Issuing charitable tax receipts for donations in accordance with CRA regulations.
5.  Acknowledging gifts to each donor in accordance with the Donor Relations Policy.
6.  Operating to ensure the charitable status of the University is maintained.
7.  The Board of Trustees has delegated the investment of all endowed gifts to the Financial Planning, Investment and Human Resources Committee. This committee operates in accordance with all related Brock Policies.

Definition

CRA defines a gift as "a voluntary transfer of property without valuable consideration to the donor”. Gifts will qualify for current calendar year charitable tax receipts if they are post marked in the current year or officially received at the University in the current year.

 
Business receipts, not charitable tax receipts, are provided for corporate sponsorships.
 
Where the University provides something of value in return for a donation, the value of the eligible amount of the charitable gift receipt will be determined by calculating the excess value of the donation over the amount of the advantage provided.

Gift Acceptance
The Office of Development and Donor Relations will work with all donors and recipients to ensure that the terms of reference for all gifts can be satisfied. The Office of Development and Donor Relations will ensure relevant Offices are consulted prior to gift acceptance in the light of donor requested stipulations, fund matching possibilities, ongoing costs including insurance coverage, and other implications.

The Board of Trustees has set forth the signing authorities required to accept gifts in the Signing Authority Policy. While the University will make every effort to accept all gifts, it retains the right to refuse any gift. The University may refuse a gift if its acceptance is incompatible with its mission, image and values; limits or imposes conditions on academic freedom; or compromises the autonomy of the institution. If necessary, adjudication will be conducted by the Provost in consultation with the Vice President, Advancement.

Return of Gifts
Where events or information available subsequent to gift acceptance occurs, which constitutes a significant and continuing challenge to the University and or its mission, vision and values, the University will seek legal counsel to resolve the issue within the law.

Gift-In-Kind Valuation
Gifts-in-kind, also known as non-cash gifts, are gifts of property. They include, but are not limited to, items such as artwork, equipment, securities, and cultural and ecological property. Gifts-in-kind may be retained by the University and used for purposes consistent with its objectives or may be liquidated.

A contribution of service is not property and, therefore, does not qualify as a gift or gift-in-kind for purposes of issuing official donation receipts.
 
The Office of Development and Donor Relations follows the regulations set out by the CRA governing the valuation of gifts-in-kind. A charitable tax receipt is issued for the fair market value of the gift at the date the ownership is transferred to the University.
 
Where a charitable tax receipt is provided, CRA guidelines permit qualified personnel within the University to appraise items valued at $1,000 or less. If the value is greater than $1,000, a third party (i.e. arm's length from both the donor and the University) appraisal is required from a qualified appraiser.
 
The University will obtain a second appraisal where the value of the gift is greater than $100,000 or the gift is real estate. If the difference in value between the two appraisals is less than 10%, the University will take the lower of the two. Where the difference is greater than 10%, a third appraisal will be considered if the cost of the appraisal is less than 1% of the value of the asset. In either case, the average of the appraisals will be the final deemed fair market value.
 
To ensure independent appraisal integrity, the Office of Development and Donor Relations or the recipient Faculty/Department will bear the cost of the appraisal, not the donor. The recipient Faculty/Department will absorb all transfer and ongoing maintenance costs.
 
Gifts of cultural property may be entitled to special tax treatment under CRA. The Canadian Cultural Property Export Review Board (CCPERB) is responsible under the Cultural Property and Export and Import Act (CPEIA) for certifying property as cultural property that is of "outstanding significance and national importance" and also for determining the fair market value of such property for income tax purposes. The University, which includes Rodman Hall, must apply with the donor for this certification.
 
Gifts of land (i.e. servitude, covenant or easement) may be entitled to special tax treatment. The Minister of the Environment is responsible for certifying land as ecologically sensitive land "important to the preservation of Canada 's environmental heritage".
 
The University accepts gifts of securities. The University liquidates all securities received as donations at the earliest possible opportunity. An exception may be considered through the Pedagogy, Advancement and Research Committee or through the Executive Committee of the Board of Trustees.
 
Where a charitable tax receipt is not required, the receiving department will still work with the Office of Development and Donor Relations in accepting the gift-in-kind. This will ensure the value of the gift is added to the capital records of the University, sufficient insurance coverage is obtained and the donor is recognized in accordance with the Donor Relations Policy.
 
The University welcomes donations made by will, gift annuity, life income agreement, living trust or life insurance. The University will provide guidance to individuals who are considering a planned gift. Prospective donors are always encouraged to retain their own, independent advice.

Endowments & Single Year Donations

All donations are encouraged and appreciated. The donation may be endowed with a principal sum whose income pays an award in perpetuity or may be a sum that is paid annually over a number of years.
 
Donations designated to the University's endowment fund are welcomed and named awards with specific terms of reference are also accepted. The Office of Development and Donor Relations consults with the Faculty of Graduate Studies, Student Awards and Financial Aid and the Department concerned to ensure the donor's stipulations can be satisfied before the terms of reference are confirmed. Named awards and awards with specific terms of reference typically involve greater levels of administration. To ensure meaningful impact on students the following minimum donation levels have been established.
 
Gifts at levels lower than the amounts detailed in the following section will be accepted and as much as is possible, employed for a purpose that match the donor's wishes.

Scholarships recognize academic excellence and are awarded on the basis of terms of reference reflecting the donors' interests and academic priorities.


Endowed Minimum donation commitment of $25,000


Non-endowed Minimum annual commitment of at least 5 years will be consistent with the spending allocation as determined by the Board of Trustees.

Bursaries are awarded based on demonstrated financial need.


Endowed Minimum donation of $25,000

Non-endowed Minimum annual commitment of at least 5 years will be consistent with the spending allocation as determined by the Board of Trustees.

Book prizes are awarded for academic excellence and a high degree of leadership, commitment, support and participation in specific programs, departments or the University as a whole, or for other reasons as may be confirmed by the University from time to time.

 
Endowed Minimum donation of $5,000

Non-endowed Minimum annual commitment of at least 5 years will be consistent with the spending allocation as determined by the Board of Trustees.
 
Awards and other funds may be established to reward students, faculty or staff in forms other than scholarships, bursaries and book prizes.
 
Endowed Minimum donation of $5,000

Non-endowed Minimum annual commitment of at least 5 years will be consistent with the spending allocation as determined by the Board of Trustees.
 
Named Chairs can be endowed or expendable over a set term of at least 5 years. To establish a named Chair, a minimum endowed donation of $2 million or an equivalent consistent with the spending allocation as determined by the Board of Trustees will support, but is not limited to, salary, benefits and an appropriate measure of scholarly and research support as confirmed by the Provost.
 
Named Professorships can be endowed or expendable over a set term of at least 5 years. To establish a named Professorship, a minimum endowed donation of $1 million or an equivalent consistent with the spending allocation as determined by the Board of Trustees will support, but is not limited to salary, benefits and an appropriate measure of scholarly and research support as confirmed by the Provost.
 
Named Fellowships can be endowed or expendable over a set term of 5 years. To establish a named Fellowship, a minimum donation of $500,000 or an equivalent consistent with the spending allocation as determined by the Board of Trustees will support, but is not limited to, the funding required for research of a full time graduate student.
 
Related Policies:
 
Endowment Fund Investment
Trust and Endowment Management
Development
Donation
Donor Relations
Signing Authority