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Donation Acceptance Operating Procedure – Gifts-In-Kind and Securities

Donation Acceptance Operating Procedure - Gifts-In-Kind and Securities

Approval Date: March 21, 2024
Replaces: None

Purpose

To outline the process for the acceptance of gifts-in-kind and gifts of securities made to Cambrian College.

Scope

This procedure applies to all Cambrian College employees and students.

Definitions

Donor: A person or entity making a gift to the College.

Gifts-In-Kind: Non-cash gifts, such as but not limited to artwork, books, vehicles, equipment, software, furniture, artifacts, or property.

Gifts of securities: These gifts include stocks, bonds, trust units, exchange-traded funds, segregated funds, and mutual funds units.

Operating Procedure

Gifts-In-Kind

  1. Employees and students must record all information and complete the Gift-In-Kind (GIK) Donation Form when approached by a potential donor wishing to provide a gift-in-kind.
  2. Employees and students will then discuss the gift with the Alumni and Development Office to determine the need and appropriateness of the offer. The Alumni and Development Office will coordinate and obtain the appropriate approvals and signatures.  Cambrian’s I.T Department will be notified when offers of software are made.
  3. It is the responsibility of the Director, Alumni and Development, with input from Cambrian’s Finance Department, to determine if the gift qualifies as a donation under the Revenue Canada definition, or whether the gift should be processed as a non-donation receipt.
  4. Only gifts that require a tax receipt and qualify as a donation under the Revenue Canada definition require an appraisal.
    1. If the value is $999 and under, the appraisal may be made by a qualified Cambrian College employee knowledgeable in the field of the gift.
    2. If the value is $1,000 or over, an objective third-party assessment is required. When finding an appraiser is difficult or expensive, Revenue Canada will accept the appraisal of a qualified Cambrian College employee knowledgeable in the field of the gift.
    3. The responsibility for securing appraisals will be borne by the department that will ultimately benefit from the gift.  In certain cases, such as where the gift is difficult and expensive to appraise, the donor may be asked to absorb the cost.  The Alumni and Development Office can assist as required.
    4. In situations where the gift is not of direct benefit to a particular department, the Alumni and Development Office will be responsible for arranging an appraisal.
    5. The appraisal must be a signed document that indicates, at a minimum, the appraiser’s name, address, phone number and the appraised value of the gift.
  5. Once all the above has been completed and all parties agree, a tax receipt for the appraised value and a gift acknowledgment letter will be issued by the Alumni and Development Office.
  6. The original GIK Form, along with the signed appraisal and any other supporting documents and correspondence, will be maintained by the Alumni and Development Office.

Gifts of Securities

  1. The Securities Transfer Form must be completed, and a copy sent to the Alumni and Development Office and to the donor’s broker. This ensures proper receipting and intention of donation.
  2. The donor’s broker transfers the gifts of securities they directed to Cambrian College.
  3. The tax receipt issued will reflect the value of the gifts of securities at the close of the markets.
  4. The College’s Investment Manager sells the securities as soon as possible and directs funds as requested.
  5. The process takes approximately three weeks. There are occasions when it takes longer. If the gift is time-sensitive, the Finance Department and Alumni and Development Office should be notified before initiating the transfer.

Quality Assurance Compliancy

Executive Director, Alumni, Development and Office of the President is responsible for:

  • Ensuring overall compliance of this procedure.
  • Ensuring the development, review, and availability of this procedure.

Supporting Documents

Please contact the Alumni and Development Office for the appropriate form:

  • Gifts-In-Kind Form
  • Securities Transfer Form