The Aim of this Policy

This policy is designed to provide guidance to our community of donors to help facilitate the gift giving process.  This policy aims to inform donors and to assist them in ensuring that their gifts are made in a manner consistent with their objectives.  It also provides guidance to the Board of Directors of the Foundation (the “Board”) in its decision-making role regarding gift acceptance. The aim of this policy is to provide a framework that enables donors and the Foundation’s representatives to work together, providing the most effective benefits to our community, consistent with the Foundation’s and the donors’ broad philanthropic wishes.

Consistency with the Foundation’s mission:

Gifts must be consistent with the overall mission and strategic intent of the Foundation, all applicable statutory provisions, and must not compromise the Foundation’s integrity. The Foundation may, in its discretion, refuse a gift on any of these grounds.

Seeking independent advice:

Representatives of the Foundation shall encourage potential donors to consult independent legal and tax professionals to ensure that donors receive a full and accurate explanation of the nature and consequences of their gifts.

Parameters of gifts: 

Foundation volunteers, friends and staff members are authorized to encourage donors to make gifts to the Foundation within the parameters of this Policy. 

Authority to Accept Gifts: 

The responsibility to accept gifts lies with the Board, with advice and recommendations from the Business Development Committee. The Board has delegated authority to the Executive Director to accept gifts, other than those specifically outlined in this Policy. 

A) Fund Agreements and Deeds of Gift 

The Foundation works with donors to develop agreements with respect to the name, nature, limits and use of their gifts at the time a gift is made. 

Fund agreements and/ or deeds of gift specify the type of fund created. For example, the donor may wish to establish a permanent endowment, a flow-through fund or a non-permanent/term endowment fund.  These agreements will be developed where the donor is giving specific recommendations to the Foundation as to the distribution of the earnings generated by their gift.

The Executive Director, or Board Chair, as required, is authorized to negotiate the terms of fund agreements and deeds of gift with prospective donors and their professional advisors in accordance with the guidelines set out in this Policy. Among other requirements, fund agreements and deeds of gift shall clearly identify that it is the responsibility of the Board to approve all disbursements from endowed funds. 

The form of new types of fund agreements and deeds of gift shall be reviewed by the Foundation’s legal counsel unless the Board, in its discretion, determines otherwise.  In its discretion, the Board may decide to have a specific fund agreement or deed of gift proposed by a donor reviewed by the Foundation’s legal counsel. All fund agreements and deeds of gift must be reviewed and approved by the Board and executed by the authorized signatories of the Foundation in accordance with its By-Laws. 

Further information on endowments and flow-through funds is set out on Appendix A. 

B) Outright Gifts not Requiring Approval before Acceptance

Outright gifts of cash, publicly-traded securities and life insurance do not require approval by the Board unless there are unusual restrictions or circumstances involved.  The Foundation routinely accepts only property that is readily marketable at a reasonable cost. That refers to cash, cash equivalents (including deposit instruments of a government or financial institution in Canada), publicly traded securities, policies of life insurance, bequests of cash or publicly-traded securities and any other property that the Foundation has identified within its investment policies. 

Further guidelines with respect to these types of gifts are set out on Appendix A. 

C) Outright Gifts Requiring Approval before Acceptance 

The Foundation recognizes that donors will occasionally wish to give property that is not readily marketable, such as real estate or art. The Board may wish to retain the advice of tax and/or legal professionals when considering these types of gifts and the Foundation may, in its discretion, decline to accept gifts which it considers to be not readily marketable.  

Gifts that are not readily marketable must be reviewed and approved by the Board before they can be accepted. Before acceptance and approval, relevant information about the gift shall be ascertained, including a copy of any appraisal secured by the donor. Further guidelines with respect to these types of gifts are set out on Appendix A. 

Costs Related to Gift Acceptance: 

Costs such as legal fees, appraisals, real estate commissions and taxes relating to gift acceptance, maintenance, management or re-sale of a gift of property will normally be the responsibility of the donor unless the Foundation, upon prior agreement, agrees to assume responsibility for any portions of these items. In these instances, Board approval is required. 

Gifts Not Accepted: 

The Foundation reserves the right to decline a gift based on:  

• lack of congruency with the Foundation’s mission;  
• the desire of the donor to exert unacceptable conditions or controls over the disbursement of the net income from the gift;  
• cost of ownership implications related to administration time, management and marketability of the gift;  
•  unacceptable risks;  
• gifts that are illegal;  
• a gift that creates a liability;  
•  other factors agreed to by the Board from time to time.
  

Disposition of Gifts 

The Foundation does not make any representation that by accepting a gift it will retain the property or employ the donated property for the same purposes as the donor used it. For example, absent an agreement, if the Foundation accepts real property as a gift, it will not retain it but will sell it and invest the proceeds in accordance with its investment policy. 

Charitable Tax Receipting 

The timing and other details of issuing charitable tax receipts are set out in Appendix A. 

Benefit to Donor: 

The legal nature of a charitable gift is that a donor cannot expect material consideration (i.e. financial benefits or opportunities) to flow from a gift. Further, the donor may not direct the Foundation on how it must apply the spending policy in relation to the gift.  A donor may, however: 

• Advise the Foundation from time to time on how the donor wishes the annual grant making amount from the gift to be applied through a donor advised arrangement (see Appendix A) 
• Establish, at the time that the gift is made, limitations on the use to which the gift may be put. For example, the donor may designate particular charities or charitable purposes for which a gift is made. The donor may subsequently waive or loosen such restrictions.  
• Create a “scholarship” fund.
  

Gift Disclosure: 

The Foundation’s privacy policy guides how individual information is disclosed in printed or electronic materials. The privacy policy may be found on the Foundation’s website. 

It is the policy of The Foundation to make public a Statement of Funds, which names all funds.  In the discretion of the donor, and with the approval of the Board, the amount of the gift may also be disclosed to the public.  The founder of any fund or a donor may request that the fund and/or gift amount and/or the name of the donor or founder be listed as Anonymous. 

Where a fund agreement or deed of gift has been executed, the founder or donor may request that the text of the agreement or deed, but not its existence, remain confidential, except as required by law or by the normal operation of the Foundation. 

Geographic Area of Focus: 

The primary focus of the Foundation’s activities is within the geographic area encompassed by the electoral boundaries of Prince Edward County. It may refer a donor to another community foundation or charitable organization if it perceives that the donor will be better served by such organizations.