Bridgepoint Health Foundation

Transcription

1 POLICY: Gifts to the Foundation must align with the Mission, Vision, Values and priorities of the Foundation and the Hospital. The Foundation reserves the right to decline a gift that does not meet these criteria. SCOPE: This policy applies to all donations to Bridgepoint Health Foundation and to all fundraising activity conducted on behalf of Bridgepoint Health. Bridgepoint Health Foundation encourages and receives a variety of monetary and nonmonetary gifts in accordance with the guidelines of Canada Revenue Agency ( CRA ) including: Cash Bequests Life Insurance Charitable Gift Annuities Charitable Remainder Trusts Personal Property Real Estate Gifts in Kind (securities, appreciated property, medical equipment, gifts for auction, works of art); PRINCIPLES: The following are the principles that shape the Foundation s relationships with donors. 1. The solicitation and acceptance of gifts is informed by and consistent with the Mission, Vision, Values and priorities of Bridgepoint Health. Undesignated gifts will be used for such purposes as the Foundation judges will best advance its mission. Restricted gifts must be used expressly for the purposes for which they are given in so far as these purposes are consistent with the mission of the Foundation and the priorities of the Hospital. 2. The terms and conditions governing the use of donations are matters of public record except for information that is personal or proprietary. 3. The President & CEO of Bridgepoint Health Foundation may elect to accept or decline any gift. The Foundation does not accept any gifts: that require the Foundation to provide any valuable consideration to the donor or anyone designated by the donor (e.g. employment, enrollment in a Bridgepoint program, execution of a procurement contract); where association with the prospective donor or acceptance of the gift would jeopardize the moral, legal, or financial integrity of the Bridgepoint Health I:\P&P\2-Finance 2-1-Gift Acceptance.doc page 1 of 8

2 community, or have an adverse impact upon the Foundation s standing and reputation in the community; that contain conditions which, by explicit designation, require the exclusion of, or discrimination against, a group or class, unless such exclusion or discrimination has the effect of favoring one or more designated groups as provided for in any approved institutional plan or equity scheme; where acceptance of the gift would create an undue burden on the Foundation s financial resources through ongoing operating requirements or other required financial commitments; or, where the conditions of acceptance are inconsistent with existing Foundation policies. 4. Donor recognition for gifts accepted by the Foundation will be effected in accordance with the Donor Recognition Policy. In the course of negotiations concerning formal agreements with donors, the above principles will be communicated to donors, and the Policies and Guidelines referred to herein will be referenced in agreements as appropriate. DEFINITIONS: A Business Receipt is official acknowledgement of receipt of a gift but is ineligible for the purpose of supporting any claim to CRA for determining allowable non-refundable tax credits. A Business Receipt will not, for example, include the Foundation s charitable registration number, and is issued primarily for acknowledgement purposes. A Charitable Tax Receipt is an official declaration of the name of the donor, and the value and date of the gift. It will bear the Foundation s business number issued by CRA. Charitable tax receipts are normally accepted by CRA to support the calculation of the allowable non-refundable tax credits. Commemorative or Tribute Gifts are accepted in memory of or in honour of persons or departments, or to express appreciation (e.g. to a care-giver). Commemorative Gifts can be used to recognize special occasions such as retirements, anniversaries, weddings, and birthdays. I:\P&P\2-Finance 2-1-Gift Acceptance.doc page 2 of 8

3 An endowed gift is a gift that is intended to be invested by the Foundation. The gift will be transferred to a trust fund to be held in perpetuity or for a minimum of 10 years, the income but not the principal of which can be expended. Gift: In most cases, a gift is a voluntary transfer of property without valuable consideration to the donor. A transfer of property for which the donor received an advantage will still be considered a gift for purposes of the Income Tax Act providing the transfer of property was made with the intention to make a gift. The existence of an advantage will not necessarily disqualify the transfer from being a gift if the amount of the advantage does not exceed 80% of the fair market value of the transferred property. [modified excerpt from A Pledge is a promise of a gift to be made in the future. Pledges usually take the form of a promise for a certain amount to be delivered in installments over several months or years. Recognition is effected in accordance with the Donor Recognition Policy but pledges cannot be receipted until honoured because a pledge does not constitute a legally binding contract and is not enforceable. Restricted Gifts or Pledges are gifts subject to certain conditions imposed by the donor such as purpose or designation. Restricted Gifts may be used for current purposes or retained as endowed gifts. Unrestricted Gifts or Pledges are given by the donor without restriction or designation of a specific purpose, and will be recorded in the Foundation s General Fund. DEFINITION of GIFTS ELIGIBLE FOR CHARITABLE TAX RECEIPTS: 1) Cash A gift of cash includes any gift that is cash or cash-like (e.g. payment by cheque, bank draft, money order, credit card, debit card, bank transfer). 2) Bequests The Foundation encourages individuals to include a bequest in their will. The legal name of the Foundation is Bridgepoint Health Foundation, and a bequest may be expressed as: I hereby give, devise and bequeath to the Bridgepoint Health Foundation the amount or (or a description of the gift). I:\P&P\2-Finance 2-1-Gift Acceptance.doc page 3 of 8

4 Individuals are encouraged to name the Foundation as a residual beneficiary after they have made adequate provision for their heirs. Bequests of specific dollar amounts and gifts of securities or real property are also encouraged. A donor may wish to include a contingency clause which provides a bequest to charity after the death of a named last survivor. In this case, the donor may provide to the Foundation all, or a portion of, the residual Estate following the death of the named beneficiary. Donors will be advised to seek independent legal counsel in the drafting of their will. Foundation staff cannot be involved in the final preparations of a will such as the execution or witnessing of a Will in which the Bridgepoint Health Foundation is named as a beneficiary. Bequests, unless otherwise so restricted by the donor in a will or trust document, or by special resolution of the Board of the Foundation, will be endowed by the Foundation. 3) Gifts of Insurance The Foundation may accept the assignment of a fully paid up life insurance policy or a policy with premiums still owing. In order to issue a charitable tax receipt for a gift of insurance, the Foundation must be named as the owner and beneficiary of the policy for any charitable tax receipt to be considered. A charity that is merely named as a beneficiary will receive payments upon the death of the life insured as a matter of contract, and no charitable tax receipts can be issued. a) Gift of a paid-up policy will be receipted at the cash surrender value of the policy. b) Gift of an existing policy on which premiums are still owing will be receipted at the cash surrender value when the policy is transferred, and for subsequent premium payments. c) Gift of a newly purchased policy will normally have no cash surrender value and there will be no charitable tax receipt issued. Premium payments made after the assignment to the Foundation will be receipted when made. 4) Charitable Gift Annuities A charitable gift annuity is a life insurance product that allows a donor to make an immediate tax-receipted gift and receive tax-free income for life. The Bridgepoint Health Foundation purchases annuities only from top-rated commercial insurance companies. The Foundation should receive an immediate benefit equal to approximately 20% to 30% of the amount contributed by the donor. I:\P&P\2-Finance 2-1-Gift Acceptance.doc page 4 of 8

5 The immediate tax receipt is calculated by determining the amount of income the donor will receive annually and multiplying that by the number of years the donor is expected to live (according to the actuarial life expectancy in annuity mortality tables). If the resulting income is less than the amount donated, the client will receive a tax receipt for the difference. 5) Charitable Remainder Trusts A Charitable Remainder Trust is a specialized vehicle in which title to an asset (e.g. a house or investment) is transferred to the Foundation but the donor is permitted to continue to use the property (e.g. reside in the house or enjoy the investment income) during the donor s lifetime. A Charitable Remainder Trust can be funded by a variety of monetary and non-monetary assets including cash, stocks, bonds, mutual funds, or real estate. It allows the donor to receive an immediate tax receipt for a gift while continuing to enjoy the benefits of the asset. Bridgepoint Health Foundation issues a charitable tax receipt for the present value of the donation as determined by mortality tables. 6) Gifts in Kind Gifts in Kind include donated tangible and intangible assets such as real estate, promissory notes, mortgages, limited partnership interests, royalty or copyright interests, art, books equipment, automobiles, inventory, personal property, securities, medical equipment and other physical assets or material which represent value to Bridgepoint Health. The key to any receipting is establishing an appropriate value, and different types of gifts in kind require different methods of valuation. Donors may be encouraged to provide a donation to cover the cost of appraisals, and the donation will be receipted in the ordinary course. a) Gifts of Art will be accepted upon the recommendation of the President & CEO of the Foundation. Gifts of Art may be sold at any time, and will generally become the property of Bridgepoint Health. Staff will establish contact with prospective donors who offer art to Bridgepoint Hospital, view the art to determine acceptability, ensure appropriate appraisals are recorded with Bridgepoint Hospital for insurance purposes, ensure the Hospital assumes responsibility for on-going upkeep of art, and maintain an inventory. Gifts of art intended for the Hospital will be disbursed to the Hospital forthwith. I:\P&P\2-Finance 2-1-Gift Acceptance.doc page 5 of 8

6 For purposes of valuation, donors are required to provide two independent appraisals for gifts of art valued at more than $1,000, and the art will be receipted at the average value. Gifts of art valued at less than $1,000 may be accepted without a professional appraisal, after review by a knowledgeable person. b) Gifts of Securities are the subject matter of the Gifts of Securities Policy, and should be discussed by the Foundation and the donor before transfer of title commences. Valuation is determined when both unencumbered title and possession pass: this requires special care, especially during volatile markets, to ensure the expectations of the parties are aligned. GIFTS NOT ELIGIBLE FOR CHARITABLE TAX RECEIPTS Any transaction resulting in the donor receiving valuable consideration or benefits for the donation, whether or not requested by the donor [see the definition of a Gift, above]. This category includes sponsorships (marketing-oriented, contracted financial alliances between Bridgepoint Health Foundation and a corporation, foundation or individual) that in some cases can be mutually beneficial alliances in which Bridgepoint receives a fee or other consideration and the sponsor benefits from market exposure and/or favored product or corporate profile. Gifts of Certified Cultural Property. Certified Cultural Property is a defined term in the Income Tax Act, and Bridgepoint is not a qualified recipient. Donation of services or personal time (which are not gifts of property). Contributions of merchandise that are inventory, or other donation which is deductible as a business expense. If, however, a business does make a true gift out of inventory, it must add the fair market value of the item to its income. Although it is CRA s responsibility to ensure businesses comply with the Income Tax Act, the Foundation must protect the integrity of its Charitable Tax Receipt. A receipt may be issued for the fair market value of an item provided it is accompanied by an invoice to the Foundation marked paid in full. Property of little or only nominal value to the donor e.g. used clothing, furniture. Gifts in this category will be accepted if they have substantial value to the mission of the Foundation. I:\P&P\2-Finance 2-1-Gift Acceptance.doc page 6 of 8

7 Discounted invoices. Goods or services sold to Bridgepoint at less than market value are considered a contract and not a donation. It is a well-established matter of law that the sale of an item below the value remains a sale, not a gift. If a vendor/supplier wishes to make a donation to the Foundation, the vendor/supplier must ensure the gift is independent of the contract/invoice. Bridgepoint could then provide a charitable tax receipt in the normal fashion. Donations of equipment (e.g. personal computers) or cash designated to buy services or equipment for personal use. Payment for a membership, which conveys a material advantage to the member, e.g. the right to attend events, receive literature, receive services, or be eligible for entitlements of any material value. Amounts received by loose collection where it is impossible to identify the amount contributed by a particular donor. Amounts paid for tickets to fundraising events except where the ticket price includes a clearly defined charitable portion. Amounts paid for lottery tickets. GENERAL RECEIPTING CONCERNS 1. All donations - whether receiptable or non-receiptable; unsolicited or donated through any campaign - must be processed through the Foundation. Donations directed to or received by a Hospital department must be delivered immediately to the Foundation along with supporting documentation which must include all information related to the donation. 2. Eligible gifts will be acknowledged with an official Charitable Tax Receipt, or a Business Receipt, accompanied by correspondence prepared by the Foundation. These documents are deemed to be the official acceptance of the gift and its related terms and conditions. 3. Gifts of medical equipment will be referred to Bridgepoint Hospital for consideration, approval, and receiving. Receipting will be effected by the Foundation. Used equipment will not be accepted. I:\P&P\2-Finance 2-1-Gift Acceptance.doc page 7 of 8

8 4. Acceptance of non-monetary gifts (e.g. anything other than cash and cash equivalents) must be approved by the President & CEO of the Foundation. 5. The Foundation is responsible for generating all Charitable Tax Receipts. In order to achieve accurate reporting of all charitable gift contributions to Bridgepoint Health Foundation and its related entities, and to ensure that donors are recognized for the total of all their philanthropy, the Foundation must act as the sole conduit for all charitable gifts to the Bridgepoint Health community. * * * History: Gift Acceptance was adopted as a Foundation policy in This represents a revision to that policy. The review process includes: approval by the Foundation s President & CEO, review by Hospital s Executive Council ( ), approval and recommendation by the Foundation s Finance & Admin Committee ( ), and approval by the Foundation s Board of Directors ( ). I:\P&P\2-Finance 2-1-Gift Acceptance.doc page 8 of 8