Policy 7220 — Gift Acceptance Policy | Mount Allison

Policy 7220 — Gift Acceptance Policy

Policy section:
Section 7200-7299 Budgets, Investments and Expenditures
Policy number:
7220
Subject:
Policy for Accepting Gifts
Group:
University Advancement, Finance and Administration
Approved By:
The Board of Regents
Approved date:
February 7, 2020
Effective date:
February 7, 2020

1 — PREAMBLE

1.1  Application

This policy governs the acceptance and administration of donations to Mount Allison University, and is to be applied from the effective date forward. This policy does not supersede existing gift acceptance policies of the Owens Art Gallery located on the Mount Allison University campus.

1.2  Definitions

Gift: Voluntarily transferred property received and receipted by the University as a charitable donation.

Acceptance: The decision by the University to accept a gift in accordance with this policy.

Deaccession: The decision by the University to return or remove a proposed or previously received gift.

2 — GUIDING PRINCIPLES 

2.1 Mount Allison University welcomes gifts that support or advance the mission of the University.

2.2  The University will ensure the acceptance of a gift does not pose reputational harm; infringe on academic freedom or integrity; or interfere with autonomy in deciding what is studied or researched and how.

2.3  The University values and will protect its mission, independence and reputation, and does not accept gifts when a condition of such acceptance would compromise these fundamental principles, or conflict with the authority of the University Senate or the Board of Regents.

3 — AUTHORITY

3.1  It is the authority of the President to accept, decline, or approve the deaccession of, any gift to the University. This authority may be delegated to a Vice President and must be in accordance with Section 8000-8099 of the University's Signing Authorizations Policy.

4 — REVIEW

4.1  This policy shall be reviewed every five years.

Procedures

1. DEFINITIONS

1.1  Property: An asset with determinable value such as cash, securities, life insurance interest, artwork, books, or real estate.

1.2  Gift-in-Kind: Voluntarily transferred physical property received and receipted by the University as a charitable donation. In-kind gifts include, but are not limited to office equipment, computers, software, library and archival materials, real estate or artwork.

1.3  Gift-in-Kind Acquisitions Committee: An internal committee responsible for recommending acceptance of in-kind gifts. The Terms of Reference of the Committee can be found in the Gift Acceptance Procedures document.

2. APPROVALS AND AUTHORITIES

2.1  All cash gifts and pledges of $25,000 or greater are approved by the Vice-President (Advancement) and documented by a Gift Agreement in accordance with the University's Signing Authority Policy.

2.2  A Gift Agreement records the schedule, purpose, use and agreed upon acknowledgement of the gift, and is signed by the Vice-President (Advancement). A Gift Agreement is not a legal document but is meant to reflect the mutual understanding and intentions of the University and a donor.

2.3  The University may elect to accept or decline any donation. The University will not accept a donation unless there is a reasonable expectation that acceptance of the donation would benefit the University. The University will not accept a donation if such acceptance imposes upon the University overly burdensome administrative or other efforts or costs not supported by the donation. Potentially contentious donations will be brought to the attention of the President who may from time to time seek legal counsel, or consult the Board of Regents. Ultimate acceptance and approval of contentious donations resides with the President.

2.4  Charitable in-kind donations require a Deed of Gift and an independent appraiser or qualified faculty or staff member of the University to determine the fair market value for any gift valued over $1,000. A second independent appraiser is required for all gifts valued over $50,000, and for gifts that require Canadian Cultural Property Export Review Board (CCPERB) designation. Costs associated with appraisals and the acceptance of in-kind donations are taken into considerations when accepting such gifts. It is the preference of the University to request the donor to cover such costs associated with accepting in-kind donations.

2.5  The deed of gift for an in-kind donation is a formal legal agreement between the donor and the University that transfers ownership of and legal rights to the University. The signed deed of gift establishes and governs the legal relationship between donor and the University and the legal status of the materials.

2.6  Any terms or conditions governing the use of donations are matters of public record, except for information that is personal or proprietary, in accordance with provincial and federal privacy legislation.

3. UNIVERSITY ADVANCEMENT GIFT ACCEPTANCE PROCEDURES AND OPERATIONS

3.1  The Office of University Advancement will notify the appropriate academic or administrative office of all incoming donations of $1,000 or greater.

3.2  A list of all donations may be produced annually and made available, as needed, to the Board of Regents, and may be made public by the Office of University Advancement in the form of a listing of donors for stewardship and recognition purposes. Donors may request to be identified as anonymous in all public recognition and donor relations activities.

3.3  Charitable and business receipts for gifts of cash or securities are mailed within 2 weeks of accepting a gift.

3.4  Copies of all charitable and business receipts are kept on file in accordance with Canada Revenue Agency (CRA) guidelines.

3.5  Original records concerning archival gifts are managed by the Archives.

3.6  Any tangible benefit value associated with the gift is deducted from the value of the charitable receipt in accordance with Canada Revenue Agency Guidelines.

3.7  Gifts made in memory or in honour of individuals result in a notification to the honouree or next of kin.

3.8  Estate gifts received result in a notification of receipt to the executor and/or next-of-kin if known.

3.9  A multi-payment pledge is properly recorded and subsequent pledge instalment reminders are forwarded to the donor on a mutually agreed upon schedule.

3.10  Restricted gifts are allocated to the appropriate departmental cost centre and account. If new accounts are required to properly record and designate gifts or pledges, University Advancement will make such a request to the Controller. The Controller or designate in Financial Services approves expenditures from restricted accounts based on the signed gift agreement or documentation from a donor such as a copy of the will.

3.11  Donors establishing endowments will receive an annual report on principal and market values of the endowment, and earnings/losses and disbursements of the endowments.

3.12  University Advancement will record all donations to the University in the alumni and donor database and ensure the timely and accurate valuation and issuance of donation receipts on behalf of the University and in accordance with the Income Tax Act and the Canada Revenue Agency Guidelines.

3.13  University Advancement ensures the University will follow both institutional policy and federal and provincial laws with respect to the acceptance of donations that include designations relating to ethnic, religious, gender, or analogous personal characteristics. For example, scholarship terms must not violate the Charter of Rights and Freedoms.

3.14  University Advancement refers and adheres to the University Naming of Assets Policy before accepting a gift which involves the naming of a physical space of non tangible assets such as scholarships or academic entities.

3.15  The University does not accept or recognize as a charitable donation any monies or other property that provides a tangible benefit or consideration to the donor or anyone designated by the donor. In the context of the Gift Acceptance Policy and these related procedures, tangible benefit is defined as something of monetary value or worth promised in exchange for making a donation. This includes employment at the University, enrolment in a University Program, or a University procurement contract, in accordance with Procurement Policy 7101.

3.16  Gift of publicly traded securities will be accepted and the fair market value will be determined based on the closing price on the day such securities are received. The University will issue a charitable tax receipt in compliance with Canadian tax laws and regulations for such fair market value. It is the University's general practice to sell securities upon receipt.

4. TYPES OF GIFTS

Donation type Description
Expendable gifts of
cash or securities
The University receives the donation as "unrestricted" or "restricted". An expendable gift is made through a voluntary and irrevocable transfer of property by a donor, to the University, to be available for immediate expenditure by the University, in return for which no valuable benefit flows to the donor from the University.

Unrestricted donations are unfettered in the manner in which they may be expended, and are available to use for such purposes as the University President determines will best advance the University's strategic plan and priorities. The President may choose to seek the counsel of the Board of Regents for large unrestricted donations.

Restricted expendable donations are used expressly for the purposes for which they are given, as identified on a pledge form or gift agreement, or recorded by the Office of University Advancement.
Endowed gifts of
cash or securities
Endowed gifts are considered restricted gifts. The University receives the donation to hold, as trustee, in a charitable purpose trust. Endowment returns are generated by the property for use by the University in accordance with the University's Budgets, Investments and Expenditures Policies (Policy Section 7200-7299) and in support of the purpose or object of the endowment when identified by the donor.
In-kind gifts   A gift in kind refers to a voluntarily transferred physical property received and receipted by the University as a charitable donation. In-kind gifts include, but are not limited to office equipment, computers, software, library and archival materials, real estate or artwork. Gifts of service or expertise are not receiptable and thus not reflected in the Gift Acceptance Policy.

            

5. ACCEPTANCE OF IN-KIND DONATION PROCEDURES

5.1  When considering the acceptance of an in-kind gift, the University will undertake appropriate consultation and analysis as guided by the considerations of the Acquisitions Committee. The Acquisitions Committee is only activated to provide guidance on in-kind gifts valued at $1,000 or greater. In-kind gifts valued under $1,000 can be accepted and receipted without Committee input.

5.2  In-kind gifts will be valued based on their fair market value on the effective date ownership transfers to the University. 'Fair Market Value' is defined by the CRA as the highest price, expressed in dollars, that 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 independently of each other.

5.3  In-kind gifts of Cultural Property will be accepted in accordance with the Gift Acceptance Policy under the appropriate guidelines of CRA and CCPERB.

5.4  The University will consider gifts according to the following process:

5.4.1  A potential gift is identified.

5.4.2  The Acquisitions Committee completes consultations as specified in section 5.2 of this document.

5.4.3  The Acquisitions Committee reviews the matter and makes a recommendation to the appropriate dean or director; Vice-President, University Advancement; or President, as is required.

5.4.4  University Advancement conveys the decisions to the prospective donor.

5.4.5  If the gift is accepted a monetary appraisal is completed, a Deed of Gift is completed, a Gift Agreement is completed (if the gift has a value of $10,000 or greater), and a receipt and gift acknowledgement is forwarded by University Advancement to the donor.

6. THE GIFT-IN-KIND ACQUISITIONS COMMITTEE

6.1 The preferred composition of Acquisitions Committee includes the following and meets three times per calendar year:

  • Controller
  • Dean of Arts
  • Vice-President, Advancement
  • Managers, Advancement Services
  • University Librarian
  • Archivist
  • Director, Owens Gallery
  • A Representative of Facilities Management

6.2  General Considerations of the Acquisitions Committee when determining acceptance of an in-kind gift:

6.2.1  The University welcomes gifts that will assist in fulfilling its mission of providing a high quality liberal education to undergraduate students in a residential setting.

6.2.2  The acceptance of in-kind gifts will be approved by the University Librarian, dean or director if the value of the gift is under $1,000; by the Vice-President, University Advancement, if the value of the gift is at least $1,000 but less than $100,000; or by the President if the value of the gift is at least $100,000.

6.2.3  Factors that will be taken into account when the Committee considers whether or not to recommend the acceptance of a gift include, but are not limited to, the following:

  • The benefits to the University if the gift is accepted;
  • The value of the gift;
  • Its provenance and custodial history;
  • The expenses that would be necessary to store and maintain the gift if it were accepted; and
  • The University's ability to meet the terms of the gift or the expectations of the donor

6.3  The Committee will undertake the following consultation when determining acceptance of an in-kind gift:

6.3.1  The dean or director of the unit which will house, maintain or use the gift;

6.3.2  The Director of Facilities Management if that department will be responsible for the maintenance of the gift or if the acceptance of the gift may have an impact on the campus or may increase the workload of Facilities Management;

6.3.3  The Director of Computing Services if the gift involves computer hardware, software or software licenses;

6.3.4  The University Librarian if the gift will be added to the Library's collections;

6.3.5  The Archivist if the gift will be added to the Archive's collections;

6.3.6  The Director of Marketing and Communications if the gift could have an impact (positive or negative) on the reputation of the University; and

6.3.7  Other experts as may be appropriate in the circumstances.

7. THE DEACCESSION OF A GIFT

7.1  When the deaccession of an in-kind gift is being considered, the following will be taken into consideration:

  • The reason for the disposal;
  • The value of the gift;
  • The cost of maintaining the gift;
  • The condition of the gift;
  • The Gift Agreement and/or Deed of Gift;
  • The recommendations of interested parties; and
  • The integrity of the gift and the donor's initial intentions

7.2  When asked to do so by a department head; University Librarian, University Archivist, Dean; Director; the Vice-President, University Advancement; or President, the Committee will review plans to dispose of a gift and, taking into account CRA rules and whether the gift has been designated as cultural property, may offer its advice on whether the gift should be disposed of and on the following matters:

  • Whether the gift should be returned to the donor or to their estate;
  • Whether the ownership of the gift should be transferred to another institution so that as near as possible the intentions of the donor re the gift would be fulfilled; and
  • Whether any proceeds from the sale of a gift should be used in a specific way taking into account the purpose of the donation.

7.3  After reviewing the considerations in 7.1, the decision on whether and how to dispose of an in-kind gift will be made by the appropriate department head, or University Librarian if the value of the gift is under $1,000; by the Vice-President, University Advancement, if the value of the gift is at least $1,000 but less than $100,000; or by the President, if the value of the gift is at least $100,000.

7.4  The proceeds from the sale of an in-kind gift will be administered in accordance with the Surplus Assets Policy 7104, administered by Financial Services.

7.5  The deaccession of an endowed or expendable gift is at the discretion of the President, who may seek the counsel of the Board of Regents.

7.6  When the deaccession of an endowed or expendable gift is being considered, the following will be taken into consideration:

  • The reason for the disposal;
  • The Gift Agreement and/or Deed of Gift;
  • The recommendations of interested parties;
  • The integrity of the gift and the donor's initial intentions; and
  • Whether the gift should be returned to the donor or to their estate