91直播

Gift Acceptance Policy

Updated: December 5, 2024

Objective

91直播 is a registered charity (BN: 119269751RR0001) recognized by the Canada Revenue Agency (CRA) and complies with the Income Tax Act and CRA guidelines, including those addressing the provision of receipts for charitable gifts.

The objective of the Gift Acceptance Policy is to provide guidance and direction to staff and volunteers of 91直播 in their discussions with donors regarding their philanthropic goals.

Purpose of Policy

The Board of Trustees of 91直播, staff and volunteers solicit outright and deferred gifts from individuals, foundations and corporations. This policy will govern the acceptance of gifts by 91直播 and provide guidance to prospective donors and their advisors when making gifts to 91直播. The provisions set out in this policy shall apply to all gifts received by 91直播 for any purpose and serve to protect 91直播 and its donors from third party liability, unanticipated costs and negative publicity.

Gifts

Canada Revenue Agency鈥檚 Definition of Philanthropic Intent

The Income Tax Act of Canada defines a gift as a voluntary transfer of property where the donor demonstrates donative intent. In most cases, donative intent exists when any advantage (benefit) received by the donor as a consequence of making a gift does not exceed 80% of the total amount contributed.

A gift is made in any circumstance where all three of the conditions listed below are satisfied:

• A donor transfers some property, usually cash, to a registered charity and the charity irrevocably accepts the gift.
• The gift is strictly voluntary. Any legal obligation on the part of donor may cause the transfer to lose its status as a gift, or result in the value of the gift being reduced.
• The eligible amount of the gift is ascertainable.

Standard Gift Types

The following gifts are considered acceptable:

• Cash
• Gifts of Publicly Traded Securities
• Gifts In-Kind
• Deferred Gifts
  • Bequests by Will
  • Gifts of Life Insurance
  • Gift Annuities
  • Charitable Remainder Trusts

1. Cash: Cash is acceptable in any form. Cheques shall be made payable to 91直播 and shall be delivered to 91直播 at 6 Hoskin Avenue, Toronto, Ontario M5S 1H8. Cheques are considered accepted on the day dated on the cheque if delivered in person. If cheques are mailed or couriered, they will be considered received by 91直播 on the date stamped by a third party (i.e. Canada Post). Credit card payments (Visa, MasterCard, American Express) are considered accepted the date the card number is received, with attestation by a staff member of the Office of Development & Alumni Affairs.
2. Gifts of Publicly Traded Securities: Gifts of securities traded on a public stock exchange are the most common form of non-cash gifts and currently receive favourable tax benefits. The value of the gift for issuing a donation receipt will be the closing trading value recorded the day the securities were received by 91直播.
3. Gifts In-Kind: These are gifts of property other than cash and publicly traded securities. Gifts in-kind include books, private papers of individuals associated with 91直播, ephemera, and artwork. All gifts of land, buildings, or vehicles must have prior approval from the Board of Trustees of 91直播 before acceptance from the donor. Land being considered for donation to 91直播 must have an environmental assessment completed at the donor鈥檚 expense.

Gifts-In-Kind eligible for tax receipt

The following requirements must be met:

• the gift is of value to 91直播
• an independent appraisal has been made of the fair market value of the gift (see section on Fair Market Value below)
• gift certificates should be reviewed with the Office of Development & Alumni Affairs prior to acceptance as the terms of the certificate, and whether or not the donor is the issuer, determine the ability and timing of a receipt being issued.

Gifts-In-Kind NOT ELIGIBLE for tax receipt

The following Gifts-In-Kind do not qualify as charitable donations under the Income Tax Act:

• gifts of professional or personal services of an individual
• gifts by a company of its principal product or service. Such gifts are considered promotional expenses rather than charitable donations under the Income Tax Act
• donations of old clothes, furniture, home baking, etc.
• a payment for a lottery ticket or other chance to win a prize is not a gift

4. Deferred Gifts

1. Bequests: Donors and supporters of 91直播 are encouraged to make provisions for the College in their wills in the form of charitable bequests. Where possible, it is preferable for a donor to consult with staff to ensure their proposed gift can be accepted by 91直播.
2. Life Insurance: 91直播 will accept gifts of life insurance policies provided that 91直播 and the donor reach prior written agreement regarding arrangements for the ownership of said policy and the payment of future premiums should they exist.
3. Gift Annuities: A Gift Annuity combines the donor鈥檚 gift to 91直播 with an annuity that 91直播 purchases on the donor’s behalf through a licensed insurance company. Guaranteed annuity payments will continue throughout the donor鈥檚 lifetime, unaffected by changes in the economy or interest rates. If the donor wishes, the annuity can be written to cover the donor and his/her spouse through both lifetimes.The exact amount of the annuity payments will depend on the donor(s) age(s), the size of the contribution and the annuity rates in effect at the time of the gift. Depending on the donor鈥檚 age, all or a portion of the annuity payments will be tax-free. Older individuals will receive entirely tax-free payments plus a donation receipt. The portion of the contribution not required to purchase the annuity will be used by 91直播 as the donor directs.
4. Charitable Remainder Trusts: A charitable remainder trust is a deferred giving arrangement under which a donor transfers property (cash, securities or real estate) to a trustee. The donor retains the right to the income from the trust either for life or a specified term of years and 91直播 has irrevocable title to the assets when the donor dies.

Designated Gifts

Expendable gifts and endowments (or portions of these types of gifts) may be classified as either 鈥渄esignated鈥� or 鈥渦ndesignated鈥�.

• Designated gift- a gift for which the donor has given specific directions on how the gift is to be used.
• Undesignated gift – a gift for which the donor has left it to the College to decide how to use the funds (e.g. 鈥渇or the general purposes of the College鈥�, or 鈥渢he highest priorities of the College鈥�).

International Gifts

Gifts by Residents of the聽United States聽to 91直播

Under the Canada-United States Income Tax Convention, certain donors resident in the United States may have their gifts receipted for income tax purposes directly by 91直播:

• alumni and their families (family members are defined as: spouses, children, grandchildren, parents and siblings),
• corporations and foundations with Canadian income.

All other donors must continue to make their donations through聽The Associates of the University of Toronto, Inc. (the聽鈥淎ssociates鈥�)聽if they require a U.S. tax receipt. Established in 1947 to facilitate donations, the聽Associates聽is a not-for-profit organization recognized under the U.S. Internal Revenue Code, Section 501(c)(3).Gifts for 91直播 made through the Associates are paid to 91直播 through the University of Toronto.

Gifts by Residents of Hong Kong

Donors who are residents of Hong Kong can make their gift through The University of Toronto (Hong Kong) Foundation if they require a Hong Kong tax receipt. The University of Toronto (Hong Kong) Foundation is registered with the Inland Revenue Department (Hong Kong) and is authorized to issue Hong Kong tax receipts for gifts received. Gifts for 91直播 made through the Hong Kong Foundation are paid to 91直播 through the University of Toronto.

Endowed Funds

An endowment is a gift of cash or property given for the College鈥檚 permanent use, or use for a period of time. A gift may establish a new endowment fund or augment an existing one. A minimum gift of $50,000 is required to establish an endowment fund.

Endowment funds may be established to support a wide range of College priorities. Unless specified in writing prior to the gift, endowment funds are segregated accounts in which the initial gift capital is invested in perpetuity and only the income is available to fulfill the purpose of the fund as defined in the Gift Agreement. Endowment funds are administered according to 91直播鈥檚 Statement of Investment Policy and Procedures, as it may change from time to time.

The income generated by an endowment may be directed to 91直播 activities such as academic programs, student awards and general operations. The purpose of the fund will be described within the Gift Agreement between 91直播 and the donor.

Fair Market Value

Prior to acceptance of in-kind gifts, Development staff must review all requirements associated with the gift and consult relevant departments regarding all costs (including the cost of obtaining appraisals if required) and implications associated with acceptance of the gift.

Fair market value (FMV) must be determined before the gift is accepted. The appraised FMV can be used to calculate the eligible amount of the gift unless the deemed FMV rules apply, as outlined in the CRA document – P113 Gifts and Income Tax 2015.

Fair market value can be determined by:

• the value of an item in a retail store;
• independent appraisal, or
• highest price that the property would bring in an open and unrestricted market between a willing buyer and a willing seller who are both knowledgeable, informed and prudent, and who are acting independent of each other.

If the fair market value of a gift is $1,000 or less, a qualified staff member of 91直播 can appraise the gift.

If the fair market value is more than $1,000, the FMV must be established by consulting published current price lists for comparable items. If a value cannot be established by this means by the donor or by representatives of 91直播, 91直播 will undertake to obtain an FMV assessment from an independent appraiser who is an expert in his/her field. Payments of appraisal fees are the responsibility of the donor unless otherwise agreed to by 91直播.

Valuation documents are required to issue charitable receipts to the donor and must be forwarded to the Office of Development & Alumni Affairs. If the property is appraised, the name and address of the appraiser must be included on the official donation receipt.

Cheque Exchanges

Gifts of Services

As outlined CRA policy CPC-017, contributions of services are not property and therefore do not qualify as gifts for purposes of issuing official donation receipts. An official donation receipt may be issued if a person provides a service, 91直播 pays for the service, and the person then returns the payment to 91直播 as a gift. Two transactions have taken place, the first being the provision of a service and the payment of the service, and the second being a gift. This cheque exchange ensures the presence of an audit trail, as the donor must account for the taxable income that would be realized. The charge for the service must be at market rate.

Out-of-Pocket Expenses

As outlined in CRA policy CPC-012, a charity can reimburse a volunteer for the expenses incurred on behalf of the charity and later accept the return of the payment as a gift, provided that the amount is returned voluntarily. Reimbursed expenses must be for items and/or activities directly on behalf of 91直播.

To facilitate the reimbursement and charitable donation receipt, an exchange of cheques will occur. 91直播 issues a cheque to the volunteer covering the costs incurred authenticated by receipts provided by the volunteer. The volunteer writes a cheque to 91直播 for an equivalent amount. This process ensures 91直播 has the proper financial records justifying the receipt it issues to the volunteer and the volunteer can document that he/she has transferred property to 91直播.

Eligible expenses are to be approved in advance of the expenditure whenever possible. Expenses will be assessed by the Executive Director, Development & Alumni Affairs in consultation with the Chief Financial Officer.

Types of Eligible Expenses:

Travel expenses incurred by the volunteer while on 91直播 business. Example: 91直播 hosts an alumni branch event in New York; the Board Chair attends the event and pays for his or her transportation and other travel costs. 91直播 directly benefits from these activities and will facilitate a cheque exchange and the Board Chair will receive a donation receipt.

Expenses incurred by a host volunteer on behalf of 91直播 for advancement purposes. Example: The Provost of 91直播 hosts an event at the home of a volunteer and the volunteer pays for all costs associated with the event. 91直播 made the request of the volunteer to incur the expenses and 91直播 directly benefits from these activities and will, therefore, facilitate a cheque exchange. For additional guidance, volunteers are asked to consult with the Executive Director, Development & Alumni Affairs.

Types of Ineligible Expenses:

Expenses incurred that do not directly support the activities of 91直播 do not have a market value. Example: A class year representative organizes a reunion for their class at a restaurant and attendees each pay their own costs. A benefit is received and no charitable receipt will be issued.

Contributions of a non-financial nature benefiting a school activity. Example: An alumnus donates second-hand books to the Friends of the Library for the annual Book Sale. This donation has little or no financial value and no receipt will be issued.

Reference: CRA鈥檚

Split Receipting

Split receipting is the method used to calculate the聽eligible amount of a gift聽for receipting purposes when the donor has received an聽advantage聽(consideration) in return for his or her donation. To determine the eligible amount of the gift, a charity has to subtract the聽fair market value聽(FMV) of the advantage from the聽FMV聽of the gift.

Criteria for split receipting

Where a donor receives an advantage in exchange for a gift, a charity must be able to calculate with an accurate figure for the聽FMV聽of that advantage. The gift, minus the advantage, still has to constitute a voluntary transfer of property and meet the intention to make a gift threshold.

What is the intention to make a gift threshold?

When the聽FMV聽of an advantage received for a gift is more than 80% of the聽FMV聽of the gift itself, the Canada Revenue Agency (CRA) generally considers that there is no true intention to make a gift. Therefore, a charity cannot issue a receipt.

Understanding the de minimis rule

Certain advantages are of nominal value and are considered too minimal to affect the value of a gift. Advantages that have a combined聽FMV聽that is not more than $75 or 10% of the聽FMV聽of the gift, whichever is less, are considered too minimal to affect the amount of the gift. A charity does not have to subtract these advantages from the FMV聽of the gift when issuing receipts.

The de minimis rule does聽not聽apply to:

• cash or near-cash equivalents (for example, redeemable gift certificates, vouchers, and coupons)
• the object of a fundraising event (for example, the meal at a fundraising dinner, or the green fees, cart rental and meal at a golf tournament)

The charity must always subtract the value of these items from the聽FMV聽of the gift before issuing a receipt.

Fees

91直播 will levy a fee on both expendable gifts and the payout on endowed donations as the College determines is appropriate from time to time. For expendable funds, 91直播 applies a 2 per cent fee on new expendable gifts (beginning January 1, 2025). This fee is capped at $100,000. The fee on payout on endowment donations is captured in 91直播鈥檚 Statement of Investment Policy and Procedures. Any changes to the fees will be approved by the Board of Trustees.

Gift Agreements

When an expendable or endowment gift is in excess of 25,000 or includes designations and/or restrictions, a gift agreement will be drafted for signature by the donor and 91直播 through staff representatives.

Ideally, the gift agreement should include the following points:

• clearly state the donor鈥檚 commitment to make a gift
• clearly state a description of the funded property
• provide a description of the gift and the payment schedule
• identify the purposes for which the gift will be used and any recognition, acknowledgement and stewardship by 91直播 in appreciation of the gift
• variation of Purpose Clause

Conflict of Interest

The concept of conflict of interest covers a wide range of situations where what is at stake for individuals鈥� conflicts with their official responsibilities and the confidence vested in them. This type of 鈥渋nterest鈥� may, for instance, be related to financial gain, professional advancement or promotion, commitments to third parties, allegiance to institutions, and roles or responsibilities of a religious or administrative nature.

When accepting and or negotiating donations on behalf of 91直播, staff, volunteers, and faculty will be aware of any potential conflict of interest that may arise, and endeavor to inform the appropriate authorities (e.g., Board Chair, Provost, Executive Director of Development & Alumni Affairs, etc.) of a situation that involves a conflict of interest.

In accordance with prevailing ethical standards of fundraising, 91直播, staff, volunteers, and faculty may not accept personal gifts, or several gifts, from donors, regardless how the gift was made, where the cumulative value exceeds $50.00.

91直播 urges all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax or estate planning consequences. For additional clarity on the relationship between 91直播 and its donors, please review the Donor Bill of Rights attached as Appendix A.

Use of Legal Counsel

When appropriate, 91直播 will seek the advice of legal counsel (either through the Counsel, Business Affairs and Advancement at the University of Toronto鈥檚 Division of University Advancement or independently retained) in matters relating to the acceptance of gifts. Review by counsel is recommended for:

• The review of certain gifts, such as closely held stock, or stock subject to restrictions
• The review of all transactions governed by legal documents or contracts
• The review of all transactions with the potential for conflict of interest
• Other circumstances when the Board of Trustees of 91直播 believe that the use of counsel is appropriate

Declining a Donation

91直播 will accept gifts provided that such gifts are consistent with its stated mission, purposes and priorities. At times, 91直播 and/or the Board of Trustees of 91直播 may choose to decline a proposed donation. The following conditions justify such an action, although other situations may also occur:

• If the donation constitutes a non-qualifying security, non-qualifying investment or otherwise deemed inappropriate by the CRA.
• The donor applies unacceptable restrictions or conditions on the gift.
• The gift will be unreasonably onerous to administer.
• 91直播 is unable to honour the proposed terms of the donation.
• An appropriate fair market value cannot be determined or will result in unwarranted or unmanageable expense to 91直播.
• If the donation involves unlawful discrimination on prohibited grounds, as defined in the
• There are unusual features to the donation that are contrary with the objectives, values, and goals of 91直播.
• The donation could financially or morally jeopardize the donor and/or 91直播.
• The donation or donation terms are illegal or contrary to public policy.
• The donation could jeopardize 91直播鈥檚 registered charitable status.
• The donation is determined to be counter to, inappropriate for, or beyond the scope of the mission of 91直播.

The Board of Trustees of 91直播 shall make all final decisions on proposed gift designations, and their acceptance or refusal.

Approved 91直播 Development Committee: November 27, 2024
Approved 91直播 Board of Trustees: December 5, 2024

Appendix A

The Donor Bill of Rights

Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To ensure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the nonprofit organizations and causes they are asked to support, we declare that all donors have these rights:

1. To be informed of the organization’s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
2. To be informed of the identity of those serving on the organization’s governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.
3. III. To have access to the organization’s most recent financial statements.
4. To be assured their gifts will be used for the purposes for which they were given.
5. To receive appropriate acknowledgement and recognition.
6. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law.
7. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
8. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.
9. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
10. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.

The Donor Bill of Rights was created by the Association of Fundraising Professionals (AFP), the Association for Healthcare Philanthropy (AHP), the Council for Advancement and Support of Education (CASE), and the Giving Institute: Leading Consultants to Non-Profits. It has been endorsed by numerous organizations.

Appendix B

How 91直播 Manages Endowments

鈥淓ndowments鈥� are funds subject to externally imposed restrictions that the capital must be maintained and only the income used for the fund鈥檚 specified purpose. The College has almost 300 endowments, the majority for scholarships and bursaries.

Endowments are pooled for investment purposes, but each endowment is accounted for separately on the books of the College.

Each endowment has a capital account and a revenue account. At the end of the fiscal year (April 30), the total return on the investment pool is distributed pro-rata as follows:

• 4% of the opening balance of the capital account of each endowment is credited to the revenue account;
• 1% of the opening balance is used to cover administrative costs;
• the rest of the total investment return remains in the capital account, with the objective of long-term capital growth to maintain the endowment鈥檚 real value.

For example, if the pool earns 7% in a given year, 2% is added to capital. This is known as 鈥渋ndexation鈥�. Indexation may be negative in some years, but the expectation is that the 4% 鈥渄raw鈥�, given the nature of the College鈥檚 investments, will allow endowment capital to keep pace with inflation over time.

Disbursements for scholarships and bursaries are determined by two committees, one for the Faculty of Arts and the other for the Faculty of Divinity, which meet several times a year. Awards are assessed based on the relevant criteria and on the expendable funds available in each of the endowment revenue accounts. The list of recommended awards is then forwarded to the Provost for approval. Disbursements from other types of endowments are determined by the terms of each endowment. Unused revenue is carried forward and available for use in subsequent years.