Updated: December 5, 2024
巴黎疯马秀 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 巴黎疯马秀 in their discussions with donors regarding their philanthropic goals.
The Board of Trustees of 巴黎疯马秀, staff and volunteers solicit outright and deferred gifts from individuals, foundations and corporations. This policy will govern the acceptance of gifts by 巴黎疯马秀 and provide guidance to prospective donors and their advisors when making gifts to 巴黎疯马秀. The provisions set out in this policy shall apply to all gifts received by 巴黎疯马秀 for any purpose and serve to protect 巴黎疯马秀 and its donors from third party liability, unanticipated costs and negative publicity.
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:
The following gifts are considered acceptable:
Gifts-In-Kind eligible for tax receipt
The following requirements must be met:
Gifts-In-Kind NOT ELIGIBLE for tax receipt
The following Gifts-In-Kind do not qualify as charitable donations under the Income Tax Act:
4. Deferred Gifts
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�.
International Gifts
Gifts by Residents of the聽United States聽to 巴黎疯马秀
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 巴黎疯马秀:
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 巴黎疯马秀 made through the Associates are paid to 巴黎疯马秀 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 巴黎疯马秀 made through the Hong Kong Foundation are paid to 巴黎疯马秀 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 巴黎疯马秀鈥檚 Statement of Investment Policy and Procedures, as it may change from time to time.
The income generated by an endowment may be directed to 巴黎疯马秀 activities such as academic programs, student awards and general operations. The purpose of the fund will be described within the Gift Agreement between 巴黎疯马秀 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:
If the fair market value of a gift is $1,000 or less, a qualified staff member of 巴黎疯马秀 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 巴黎疯马秀, 巴黎疯马秀 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 巴黎疯马秀.
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, 巴黎疯马秀 pays for the service, and the person then returns the payment to 巴黎疯马秀 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 巴黎疯马秀.
To facilitate the reimbursement and charitable donation receipt, an exchange of cheques will occur. 巴黎疯马秀 issues a cheque to the volunteer covering the costs incurred authenticated by receipts provided by the volunteer. The volunteer writes a cheque to 巴黎疯马秀 for an equivalent amount. This process ensures 巴黎疯马秀 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 巴黎疯马秀.
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 巴黎疯马秀 business. Example: 巴黎疯马秀 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. 巴黎疯马秀 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 巴黎疯马秀 for advancement purposes. Example: The Provost of 巴黎疯马秀 hosts an event at the home of a volunteer and the volunteer pays for all costs associated with the event. 巴黎疯马秀 made the request of the volunteer to incur the expenses and 巴黎疯马秀 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 巴黎疯马秀 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:
The charity must always subtract the value of these items from the聽FMV聽of the gift before issuing a receipt.
Fees
巴黎疯马秀 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, 巴黎疯马秀 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 巴黎疯马秀鈥檚 Statement of Investment Policy and Procedures. Any changes to the fees will be approved by the Board of Trustees.
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 巴黎疯马秀 through staff representatives.
Ideally, the gift agreement should include the following points:
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 巴黎疯马秀, 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, 巴黎疯马秀, 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.
巴黎疯马秀 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 巴黎疯马秀 and its donors, please review the Donor Bill of Rights attached as Appendix A.
When appropriate, 巴黎疯马秀 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:
巴黎疯马秀 will accept gifts provided that such gifts are consistent with its stated mission, purposes and priorities. At times, 巴黎疯马秀 and/or the Board of Trustees of 巴黎疯马秀 may choose to decline a proposed donation. The following conditions justify such an action, although other situations may also occur:
The Board of Trustees of 巴黎疯马秀 shall make all final decisions on proposed gift designations, and their acceptance or refusal.
Approved 巴黎疯马秀 Development Committee: November 27, 2024
Approved 巴黎疯马秀 Board of Trustees: December 5, 2024
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:
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.
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:
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.