ALBERTA DESIGN TTi1 · 10. An anniversary reminder ten months from thedate of gift will be added to...

ALBERTA COLLEGE OF ART + DESIGN

TTi1PROCEDURE: 800.02.01

SECTION: Engagement

TOPIC: Gift \cccptancc Procedure

EFFECTIVE DATE: REPLACES:

April 3, 2014 800.02.01 — Gift(s)-in-kind Donations

LATEST APPROVAL DATE:

April 3, 2014

NEXT REVISION: ARCHIVED:

April, 2017

APPROVING AUTHORITY:

--

— Original signed by President ± CEO

TABLE OF CONTENTSGift Processing Procedures Overview

PROCEDURES BY TYPE OF GIFTGifts of Cash 7Gifts of Publicly Traded Securities 8Gifts of Real Estate 10Gifts of Life Insurance 12Bequest Gifts 14Memorial and Tribute Gifts 16Gifts in Kind 17Other Restricted Gifts 19References 22AppendicesA: Policy Management Responsibilities 23B: Gift Processing form 24C: Gift of Publicly Traded Securities Transfer Form 25D: Planned Giving form 26U: Tributc/ Memorial Gift Form 29F: Gift in Kind Over S1,000 Form 30G: Gift in Kind Under 1,000 form 32ii: Association of fundraising Professionals Code of Ethics 33I: Association of Fundraising Professionals Donor Bill of Rights 34

Procedure: $OO.C)2O1

Latest Approval- April 3, 2014

ALBERTA COLLEGE OF DESIGN

Tfj1OVERVIEW

The following outlines general guidelines for all gifts, as defined in and in accordance \vtth theCollege’s Gi/tAcceptance Potgi’, received by the ‘dberta College of Art + Design:

1. Acceptance of all gifts by the College will be conducted in accordance with the rec1wrementsof the Canada Income fax Act and common law as it applies to t-egistered charities, CanadaRevenue .Agencv Charities Directoratc guidelines, and Alberta government regulations.

2. Ihe Gide/ing Putiitiptes, Restrictions, Statement ofEtnuciraising Ethics alic! Gift Acceptance PoinT applyin all gift acceptance scenarios of the College.

3. The Alberta College of Art -- I)esign’s solicitation and acceptance of all donations isinft)rmed by and consistent with the College’s Fimdraising Goordination acid Proipect Mam]5emeiltProcedures, other relevant policies, and the priorities and interests established by the College.

4. Any terms or conditions governing the use of donations are matters of public record, exceptfor information that is personal or proprietary, in accordance with the Freedom of Informationand Protection ofPrh’a Act and the College’s confidentiality ?otifj and Donor and GtftConfldentia/itj Procedure.

A list of all donations may he prodticed annually and be made available, as needed, to theBoard of Governors and the Board 1)evelopment Committee, and may be made public bythe Engagement Office in the form of a listing of dom)rs for stewardship and recognitionpurposes. Donors may request to be identified as anonvtm)cls in all public recognitionactivities and the College is committed to honourmg those recjucsts.

3. Ihe Board of Governors authorizes the Senior Development Executive to establish andchair the ad hoc Donation Acceptance Committee to consider gifts of potential concern,as further detailed below.

ihe following gifts must be reviewed and approved b the Donation AcceptanceCommittee:

a. Outright gifts of real estateb. Residual interest giftsc. Charitable remainder trustsd. Gifts of art over a value of $100,000e. Gifts-in-kind over a value ofSiOO,000

‘Ihe prior approval of the Donation Acceptance Committee is also required with respect toan donation in support of a scholarship or award that seeks to designate criteria relating tomembership in a particular the College constituency, group, or association.

‘Ihe Alberta College of Art + Design will follow both the College policy and federal andprovincial laws with respect to the acceptance of donations that include designations relatingto ethnic, religious, gender, or analog( us personal characteristics and prior appo )val of the

Procedure: $t)U.02U1


ALBERTA COLLEGE OF I DESIGN

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ad hoc Donation Acceptance Committee is requircd with respect to accepting any suchdonations.

1hc Donation Acceptance Committee will include the Senior Development I xecuttvc, VicePresident, linance and Corporate Services or delegate, at least one other member of Cabinet,and other College staff who have a vested interest in each specific case under review. Case-by-case decisions wii1 not be considered precedcnt setting.

Before the gift is accepted and to ensure the gift is properly structured, relevant informationabocit the gift shall he obtained, including a copy of the appraisal secured by the donor athis/her expense. Ihe College reserves the right to secure its own appraisal.

If a donor’s wishes are deemed to not correspond with the College’s priorities followingreview by the Donation Acceptance Committee, the donor wifl be advised and asked to redesignate his or her intended gift. If the donor’s wishes cannot be satisfied within theseparameters, the intended gift will be declined with thanks.

6. Acceptance of any gift which involves a proposal to name is subject to all of theconsiderations contained within this policy and under the Donor Recognition a;idcamthg Pottcjand related procedures. Donor recognition of all gifts accepted by the College will be inaccordance with those outlined in the aforementioned policy.

7. All gift acceptance policies and procedures will be conducted in accordance with CanadaRevencie Agency guidelines and all other legal recjuirernents, as well as Association ofFuiidraistng ProJ’ssiona/s’ Code ofEthicat Puinctj/es and Standards for ro fessif inal fund raisers andthe Association ofFundraithg Ptvftssionats’ Donor Bitt of Rights.

Procedure: 80002.01


ALBERTA COLLEGE OF ART * RESIGN

VTAi1GIFT ACCEPTANCE PROCEDURES:

All gifts received by the Alberta College of Art + 1)esign will be processed in the following manner,wtth attention paid to specific procedures for each type of gift, as outlined in the relevant sectionbel( )w:

1. Gifts in all cases shall be made to the Alberta Collee of Art i- l)esign.

2. Gifts shall be processed the day of or next business day after receipt.

3. A Gift Processing lorm, attached in the appendix, shall be completed for every giftreceived by the College.

a. The Gift Processing lorm will be completed by the Gift Administrator and willbe signed off by the Senior Development Executive and Director, Finance

b. A copy of the (:hft Processing Form, cheque or other payment, and relateddocumentation (detailed in the relevant section below) will be kept by theI mgagement Office.

c. Ihe original items listed in #2 above will be provided to the Iiinance department.who will process and record the gift in the finance database.

d. A scanned copy of the items in #2 above will be stored in the appropriate mediatab of the Raiser’s Edge database donor record.

e. Ihe donation will be reccrded in the Raiser’s I dge database.

4. A charitable tax receipt is issued within 2 business clays of receipt of gift as follows:a . All receipts are issued through Raiser’s I dgeb. Receipt numbers are generated automatically and in chronological order in

Raiser’s l.dgeEnissued and copies of all issued charitable tax receipts are stored in a lockedcabinet in the Engagement Office; all copies of isscied receipts are clearly markedas a copy

Original c pies of voided receipts will be clearly marked void; include a reason forvoid; and if applicable, it will state the number of the replacement receipt. As’above,these are stored in the locked I ngagement Office catjinet.Charitable tax receipt information that will be included on every receipt is as follows:

(I) Cash gift (no advantage)

• Receipt number

• Chantv name

• Charity address

• C hantable Registration number

• Date donation received

• I)onated by

• I)onor address

• I digihle amount of gift for tax purposes

Procedure: 8t)t).t)2.O1


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• Date receipt issued

• I A)catft)n receipt issued

• 1\uthorized signature

• ‘Ibis note: For information on all registered charities in Canada under theIncome Tax Act please visit: Canada Revenue Agency www.cra

arc.gc.ca/charitiesanclgiving

(II) Cash gift (with advantage)

The following lfl addition to (I) above

• lotal amount received by the charity A• Value of advantage

(cash/fair market value of property or services provided to the donor)

• iligible amount of gift for tax purposes

(line A minus line B)

(III) Non-cash gift (no advantage)

‘Ihe following in addition to (I) above

• Nigible amount of gift for tax purposes

(fair market value of property)

• Description of f( )pertv

• Date received by charity

• Appraised by• Address of appraiser

(IV) Non-cash gift with advantage

‘I’he following in addition to (I & III) above

• Iota1 amount received by charity A(fair market value of property)

• Value of advantage II(cash/fair market value of property

or services provided to the donor)

• I Jigible amount of gift for tax purposes:—

(line A minus line B)

Procedure: 8U0.t)2.O1

Latest ApprovaI April 3, 2014

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5. An acknowledgement reccipt will be issued when:a. Ihe gift made is not eligible for a charitable tax receipt, as defined by the (anada

Revenue \gencv guidelines or other related legislationb. Corporate sUpport in the form of corporate sponsorship or marketing

partnership is pu vided to the College.c. A grant is macic from a foundation, organization or other entity not entitled to a

charitable tax receipt for such support.ci. Ihe donor requests no tax receipte. As with all other gifts of support, a Gift Processing Form and relevant

documentation will be required and processed as outlined in #2 above.

6. (hai-itable tax receipts and business acknowledgement receipts may only be issued in thename of the actual donor, as defined by Canada Revenue Agency gLildelines.

7. \‘<herc appropriate, gift agreements \vill be recorded between the donor and the College.All gift agreements created external to the (ollege will be reviewed by the SeniorDevelopment I xecutive or designate. \\hen deemed necessary by the SeniorDevelopment Executive, legal counsel will be requested to review gift agreements. Thesegift agreements will be copied and stored as noted above in #3.

8. Every gift received by the College will be acknowledged within two business days ofreceipt. Acceptable forms of ackn )wledgemcnt include: thank vt )u letter, handwrittenthank you note, thank you phone call. \Vhcre possible, thank you cards, letter and phonecalls should be personalized and meaningful, and made by the most senior Collegepersoimel available.

9. A donation macic by a new donor to the College will be sent a “New Donor \\‘elcomcKit’’, within two business days of making the gift.

10. An anniversary reminder ten months from the date of the gift will be added to theRaiser’s Edge donor record to report back to every donor making a gift of $1,000 ormore, or at the request of any donor.

11. A gift reminder will be added to the Raiser’s I dge donor record to invite a new gift bemade to the College eleven ITH)flths after a gift.

12. Regular communications including invitations, newsletters, and other methods will beused to steward donor throughocit the year in between the first gift and subsequent gifts,and/or scibseqcient invitations to support the College.

Procedure: HtH)02.(i1


ALBERTA COLLEGE OF ART DESIGN

VATAfi1I. GIFTS OF CASH

Application:All gifts of cash, credit card, cheque, pledge.

Specific Procedures:1. Gifts of cash, cheque and credit card are accepted and recorded in acconiance with the Gift

Acceptance Poticj. and the general gift acceptance procedures above.

2. Pledges arc recorded in Raiser’s Edge when appropriate documentation has been received toconfirm that a pledge is forthcoming. Documentation of such pledge will be stored in anappropriate filed hard copy format and in the Raiser’s Edge donor record.

3. Pledges are not recognized as fundraising revenue until such time as the gift has beenreceived.

Procedure: 800.0201



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II. GIFTS OF PUBLICLY TRADED SECURITIES

ApplicationThis policy applies to

• All donations of shares in publicly traded companics as defincd in the GftAccepta;ice Po/ip,and

• Donations of mutual funds.

Specific Procedures:

1. Acceptance of Shares

.\. All solicitation material and any communication of procedures on donation of sharesmade to the public shall clearly state that:

i. The College reserves the right at all times to decline a donation of shares.

ii. Such right may be exercised by the College before or within a reasonable periodafter physical or electronic donation of shares takes place.

liL All risk attaching to the security and value of shares shall remain with the donoruntil such time as acceptance of the shares has been communicated to thedonor in writing.

iv. No shares, other than those traded on a prescribed stock exchange, as definedin paragraph I .A.v.below, shall be accepted in terms of this policy.

v. For purposes of this policy, a prescribed stock exchange shall be one of theTSX Group of Exchanges, including the Venture Exchange and the TorontoStock Exchange, the American Stock Exchange, the New York StockExchange, and the NASDAQ Stock Exchange.

vi. The donation of any such restricted shares would be the subject of a writtenagreement entered into by the College and the donor, prior to their acceptance.

B. Acceptance of shares requires both the appropriate documentation to be receivedfrom the donor, and delivery of the shares to the College’s broker. As a general rule,the date of the donation shall be the date that transfer of shares is received by theCollege’s broker.

2. Valuation of Shares on Acceptance

A. The value of shares shall be determined solely at the discretion of the College. In thisregard, there are two broad groupings of shares:

i. Shares traded on a prescribed stock exchange

Procedure: 80(3.0201


ALOERrA COLLEGE OF ART + DESIGN

FTIi1ii. Shares not traded on a prescribed stock exchange

B. Shares traded on a prescribed stock cxchange1. Lnless the College expressly agrees otherwise, the shares shall be valued at the

closing priCe o the shares on the day of accepting their donation

C. Shares not traded on a prescribed stock exchange1. Ihe donation of such shares is considered, under Canada Revenue Agency

guidelines to be a non-cjuahfving security and is therefore not currently acceptedby the Alberta College of rt + Design.

3. Disposal of shares

A. A Publicly Traded Gift of Securities Transfer Iorm shall be completed, along wttliany other documentation, and processed aiong with all other documentation per giftpo )cessing guidelines above.

B. Shares shall be disposed of as soon as possible following acceptance.

C. ‘Ihe College shall engage a professional brokerage firm to assist in the efficientdisposal of shares listed on the prescribed stock exchanges. l’he ccst, if any, ofcommissions and other charges for such broking service shall be borne by theCollege.

Procedure: KOD.U2)1

Latest Approval- AprH 3, 2014

ALBERTA COLLEGE OF RT + DESIGN

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III. GIFTS OF REAL ESTATE

ApplicationGifts of real estate include bare land and developed properties. Ihese would include outr-ight giftswhere no encumbrance on the property exists, residual interest in the property, or a charitableremainder trust, where the contributed asset is real property.


1. Ihe ( )llege reserves the right to decline a gift of Real I ‘state, if in its sole opinion,organizational criteria to accept such gift is not met.

2. Notice of intended gifts of real property shall be given to the Senior DevelopmentLxecutive, who will seek approval of the Cabinet to conduct an Initial Assessment of theacceptability of the gift.

3. Initial Assessment shall be conducted as close as possible in time to the date of the donation.

4. ‘I’he Initial Assessment shall include:

a. Lse of professional and legal services where appropriate to:1. Search registry rec )rds for encumbrances,

ii. Conduct enviri )fliTiental assessment obtain reports on environmentalremediation,

iii. Obtain reports on any liabilities including but not limited to mortgages, taxes,and

iv. Obtain advice on any other matters that may influence the acceptability of thegift.

b. Lse of professional services to establish a market value for the property and likelihoodof sale. This will include where appropriate, the valciation of residual interests or othercases xvhere use of the proper or its salability is restricted in any way and whether thereare any carrying costs associated with the property.

5. All costs of the Initial Assessment and selling the property shall be borne by the denor,unless waived by the approval of the Donation Acceptance Committee.

6. All related documentation, including items from 4 above, will be provided to theDonation Acceptance Committee and recorded and stored with the donor’s record as notedearlier.

7. ‘l’he Donation Acceptance Committee shall consider the results of the Initial Assessmentand sh )uld they consider it worthwhile proceeding, recommend to the Board of Govern( rsthe acceptance of the gift.

8. The Board of (wernors shall decide whether to accept Of decline the gift based on the

Procedure: Kt)U2.U1


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information provided.

9. On approval by the Board of Governors, the Senior Development lxecutivc shall jointlyfacilitate the finalization of the donatft)n, sale and associated transfers of property withappropriate counsel from the I)onation Acceptance Committee and lawyers.

Procedure: 8(}t).t)2.t)1

Latest Approval April 3, 2014

ALBERTA COLLEGE OF ART + DESIGN

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IV. GIFTS OF LIFE INSURANCE

ApplicationThis Policy applies to both whole life and term insurance policies.


1. Life insurance policies can be donated by way of irrevocable transfer of ownership duringthe life of the donor, or by making the College a beneficiary on the death of the donor.

2. The (ollege reserves the right to decline the gift of any insurance policy.

3. Notice of intended gifts of insurance policies shall be directed to the Senior DevelopmentExecutive who will ensure the donor is aware of requirements to make the donation andcomplete the AC’ID Planned Giving form.

4. For whole life policies where ownership is irrevocably transferred at time of gift, the valuefor tax receipting is the cash value of the policy at that time. Premiums paid subsequent tothe transfer date are also eligible for the tax receipt in the amount of the premium.

5. For term life policies, where ownership is irrevocably transferred, the value for tax receipts isthe amount of the premium paid by the donor after the date of transfer.

6. bor policies where ownership is not irrevocably transferred, and the College is designated asthe beneficiary on death, the value for tax receipting purposes is the value received by theCollege on the death of the donor.

7. In the case of a whole life policy, donated during the life of the donor,a. Ihe donor shall provide appropriate, independent evidence of the cash value of the

policy at time of donation.b. The donor shall, through his/her broker, irrevocably transfer title to the insurance policy

to the College and provide documented evidence of such transfer to the SeniorDevelopment Executive.

c. The Senior Development Executive shall advise the donor and the broker that on anannual basis, the College is to be advised by the broker of the amount of premiums paidunder the policy. In the event that a donor ceases to pay premiums under the policy, theCollege shall be provided the option in its sole discretion to:

i. Continue payment of the premiums or,ii. If sufficient cash value exists at time of cessation. to declare the policy to be frilly

paid.8. In the case of a term life policy,

a) Ihe donor shall, through his/her broker, irrevocably transfer title to the insurance policyto the (ollege and provide documented evidence of such transfer to the SeniorDevelopment Executive.

b) The Senior Development Executive or designate shall advise the donor and the brokerthat on an annual basis, the College is to be advised by the broker of the amount ofpremiums paid under the policy.

Procedure: 800.02.01


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c) In the event that a donor ceases to pay premiums under the policy, the College shall beprovided the option in its sole discretion to continue payment of the premiums.

9. Tn the case of a life insurance policy where the College is the beneficiary at time of death,a) The Senior Development Executive or designate shall request documentary evidence

from the donor that the College is reflected as the beneficiary under the policy.b) In the event that a donor ceases to pay premiums under the policy, the College shall be

provided the option in its sole discretion to continue payment of the premiums.c) The Senior Development Executive or designate shall ensure with permission of the

donor that the broker advises the College of any cessation in the payment of premiumsby the donor.

10. Once completed, the ACAD Legacy Socie Gift Form shall be directed for processing andissuance of tax receipts as appropriate and in accordance with Fundraising Coordination andProspect Management Procedures.

Procedure: 80t).02.U1


flLBERTA COLLEGE OF ART * DESIGN

VTAIi1V. BEQUESTS

Application[his Policy applies to both cash and non-cash bejuests.


Cash bec1uests may be handled like any cash gift.

Non-cash beqciests rec1uire careful consideration on three fronts:

1. Whether the College should, in fact, accept the gift. If the gift is inconsistent with theCollege’s Mandate, Mission, Vision and Values, the Senior Development Executive ordesignate, and in consultation with the Donation Acceptance Committee if necessary, shouldconsider the conditions, if any, under which it will accept the gift.

2. .1 he fair market value of the gift would have been established immediately prior to the deathof the donor through the execution of the estate, but a significant amount of time could passbefore the College receives the gift and accordmglv the value may need to be reestablished.

3. I low difficult it will be to dispose of the gift, if disposal is the best option fer the College.

The College may, at its discretion, engage the cisc of professionals and guidance of the DonationAcceptance Committee in both deciding whether to accept the gift, and later in its disposition.

1. If the bed1uest is for cash, and all applicable restrictions are acceptable, the becjuest shall beaccepted.

2. Notice of intended be1uests shall be directed to the Senior I)evelopment Ixecutive \VhO willensure the donor is aware of recjuirements to make the donation and ccmpletc the \CAl)Planned Giving form.

3.

4. On receipt of notification from the trustee or other party that the College is to receive abecjuest, the Senior Development Executive shall consider the nature of the bejuest andwhether there are any restrictions attaching to the becjctest.

5. [or non—cash beciciests, counsel from the Donation .\cceptance Committee may be soughtand professionals may be used to assist in this decision if necessary. Note that as it is unlikelythat the estate will carry the costs of professional services, the cost thereof will need to bededucted from the bec1uest value in coming to a decision.

6. 1’he College reserves its rights to decline a bequest. The Senior Development lxeccitive shallcommunicate with the trcistee or other party, the decision to accept or decline a bequest,after appropriate assessment as described below.

7. ‘[he Senior Development l.xecutive or designate shall ensure that appropriate records ofeach bequest are maintained from time of first iv )tlfication thr( )ugh to receipt of the gift.

Procedure: 8t)O.02t)1



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Procedure: 800.0201


ALBERTA COLLEGE OF ART * DESIGN

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VI. MEMORIAL AND TRIBUTE GIFTS

ApplicationAll mcmorial and tribute gifts.This excludes cases where the College is the beneficiary or owner of an insurance policy which arecovered under Life Insurance Policies


1. Memorial and tribute gifts shall be carefully assessed to ensure they are in fact memorial ortribute gifts, and also for any restrictions on use.

2. A Memorial/ Tribute Gift Form shall be completed for each such gift, identifying the truedonor and the honource of the memorial or tribute gift, as well as other ielevant andrejuired information to issue a charitable tax receipt.

3. The Senior Development Executive shall consider any restrictions, and if necessary confirmwith the Development Acceptance Committee, as appropriate, whether to accept or declinesuch a gift.

4. issuance of charitable tax receipts will be in compliance with Canada Revenue Agencyguidelines, as follows: A registered charity can only issue an official donation receipt to theindividual or organization that made the gift, and the name and address of the donor mustappear on the receipt. A charity cannot issue an official donation receipt in the name ofanyone but the true donor.

5. The charitable tax receipt will be issued to the true donor and a notification of the gift shallbe provided to the honouree.

Procedure: 8t)().ti2.O1



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VII. GIFTS IN KIND

Application:

Gifts in kind reflect a broad group of gifts including, for example, tangible (artwork, furnishings,computers, etc.) and intangible (use of timeshare, tickets to events, personal services).

Canada Revenue ‘gencv pays particular attention to gifts in this class, as fraudulent tax shelterschemes frequently use gifts in kind to issue charitable tax receipts for values above the actual valuedonated. CRA has the authority to revoke charitable status, and therefore the ability to issuecharitable tax receipts, of any organization inappropriately issuing charitable tax receipts.

Therefore, the College will pay careful attention to gifts in this class.

The nature of the gift, the ability to establish fair market value and the ability to dispose of the giftare important criteria to be considered in deciding whether to accept a gift in kind. The use ofsuitably qualified experts may be necessarv in determining fair market value.

Note that gifts of services are n1.t permitted under Canadian tax law. Therefore, the College will notissue charitable tax receipts for the gift of services in kind. Canada Revenue :\gencv does, however.accept the practice of cheque swapping. This entails the person billing the College for the serviceand then donating back the amount billed, once paid by the College.


1. )C\D solicits and encourages donations to the College in the form of gift(s)-in-kind (noncash gifts).

2. A Gift in Kind Form must be completed in order to be considered for acceptance andsubsequent charitable tax receipt, if accepted.

A Gift in Kind Form is available for gifts under $1,000 and over $1,000 as the criteria fordetermining fair market value is different. These forms are included in the Appendix.

The Gift in Kind over $1,000 form requires consultation with the Facilities Director andapproval from relevant Directors, Chairs, Program Heads and/or Vice Presidents for theirdecision as to whether the College can make use of the gift and takes into considerationinsurance, space renovations, technology requirements, maintenance, delivery, cataloguing.exhibition or storage space and budget-related considerations to be taken into account.

3. If the gift in kind is deemed to be acceptable, then the College may accept the gift, providingthat:



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o Any additional expenditures as a result of accepting the gift in kind are understood andacceptable to the College (as identified in the Gift in Kind form),

o The College is free to determine the best USC of the gift in kind, which may includeselling the gift in kind with proceeds benefitting the College, and

o Financial commitments are not in excess of budgeted items or others obligationsdisproportionate to the usefulness of the gift.

4. Gifts in Kind with a value over $100,000 will be reviewed by the Donation AcceptanceCommittee as outlined earlier in this document prior to acceptance.

5. Should the gift in kind restrictions be determined to be unacceptable, the staff personsoliciting the gift will discuss the issue with the donor and request the restrictions be lifted toallow the College to accept the gift. The College reserves the right to refuse any gift in kindwith unacceptable restrictions.

6. All gifts in kind must be supported by appropriate documented evidence of fair marketvalue. The manager responsible for the business unit where a gift in kind is offered to theCollege shall be responsible for ensuring appropriate evidence of the fair market value of thegift is gathered.

o Fair market value can he determined by:

• The value of the same item, if new and unused, in a retail store;

• An appraisal by a qualified independent appraiser; or

• I lighest price the property would bring in an open and unrestricted marketbetween a willing buyer and a willing seller who are knowledgeable, informedand prudent, and who are acting independent of each other.

o Valuation documents must be provided to the Engagement Office. The followingwould be acceptable valuation documents:

• If the gift is valued in excess of $1,000, one or more independent appraisalsare required. If finding an independent appraiser is difficult, or involvesunreasonable expense, the Canada Revenue Agency will consider an appraisaldone by qualified staff member of the College.

• When the value of the gift is $1,000 or less, the Canada Revenue Agency willaccept an appraisal by a qualified staff member of the College.

• A printed, paper copy or online reference materials or catalogues.

Procedure: $t)O.02.O1Latest Approval- April 3, 2014

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o The valuation document(s) must include specifics about the gift.ITor example:

Equipment: Year, make, model, serial number, condition and value inCanadian dollars.

• )rtwork: Title of work, identitication number, artist, size of piece, date ofwork, medium, condition and fair market value in Canadian dollars.

7. Donors shall he responsible for the costs, if any, of acquiring independent appraisal(s) foruse in determining the fair market value. The College maintains the tight to require morethan one appraisal to be secured, if it deems it appropriate obtain its own appraisal.

8. Upon consultation, review and approval by the parties noted, the Gifts in Kind Form andrelevant valuation documentation will then be processed as follows:

o Gifts with a fair market value up to $1,000 or over S1,000 may be accepted by theSenior Development Executive.

o Gifts in excess of S10,000 require the sanction of the President ± CEO or, ifdetermined appropriate, the Donation \cceptance Committee, before acceptance.

Procedure: 8t)O.02.O1



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VIII. OTHER RESTRICTED GIFTS

ApplicationGifts in this group arc very infrequent to the College. They are by nature complex and requirecarcful consideration. Accordingly, each gift will be considered in its own right with appropriateapplication of the Guiding Principles.


For Other Restricted Gifts, all documentation, including legally binding gift agreements, must beprovided in order- for a charitable tax receipt to be issued.

Notice of intended bequests shall be directed to the Senior Development Executive who will ensurethe donor is aware of requirements to make the donation and complete the ACAD Planned Givingfot-m.

The Senior Development Executive or designate shall obtain the advice of professionals in assessingthe acceptability of the gift, and if appropriate, shall obtain the sanction of the Donation .\cceptanceCommittee prior to proceeding.

l’he following types of gifts are included as Other Restricted Gifts:

Gift Annuities

• 1he gift annuity is a contractual arrangement whereby a donor transfers assets to the Collegein exchange for fixed, guaranteed payments for the life of the annuitant(s) or for a term ofyears. Determination of the gift receipt and taxation of annuity payments will be inaccordance with Canada Revenue Agency regulations, with input from appropriateprofessional advisors if required.

• The gift annuity rates offered shall not exceed those recommended by the CanadianCharitable Annuity Association for gift annuities, which are computed to produce an average‘1gift” remainder or residue of approximately 50% of the amount originally donated underthe agreement. (Consequently the rates are lower than and are not in competition with ratesbeing offered by commercial annuity issuers.)(http://www.charitableannumcs.org/standards)

• Subject to the consent of the College, the donor may designate the purpose for which thegift annuity residuum is used. The “residuum” refers to the amount of the originalcontribution retained by the College after satisfying all annuity payment obligations.

Gifts of Residual Interests

• A gift of a residual interest refers to an arrangement (ordinarily in the form of a trust) whereproperty is irrevocably committed to the College, but the donor retains use of the properfor life or a term of years. For example, the donor might give a residual interest in aresidence and continue to live in it, or give a residual interest in a painting and retain

Procedure: $Ot).02O1Latest Approval- April 3, 2014

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possession of it. ‘[he donor is entitled to a gift receipt for the present value of the residctalinterest.

• Ihe donor shall continue to be responsible for real estate taxes, Insurance, utilities andmaintenance after transferring title to the property unless the College, upon pnor approvalof the Development Acceptance Committee, agrees to assume responsibility for am’ portionof these items. ‘I’he terms of the gift and responsibilities for expenses shall be specified in adeed of gift executed by the donor(s) and the College.

• ‘Ihe College shall, in the deed of gift executed as above, reserve the right to inspect theproperty from time to time to assure that its interest is properly safeguarded.

Gifts of Retirement Plans

• l)orn)rs max’ reduce tax liabilities into a charitable gift by naming the College as thebeneficiary of their RRSP or RRIF plati. ‘l’hroughout one’s employment lifetime, manyindividuals contribute to an RRSP (Registered Retirement Savings Plan); at the end of the‘ear in which the contributor or assignee of the plan turns 71 years of age, the RRSP mustbe converted into an RRIF (Registered Retirement Income i’und).

• At the end of the contributor’s lifetime the proceeds are received by the College, and adonation receipt would be issued to the estate. ‘Ihe RRSP or RRI1 tax liability due on theI istate’s final tax return may be entirely offset by the tax credit from the donation receipt.

• Similar treatment is afforded to a RPP (Registered Pension Plan), or a hf (Life Incomelund).

Gifts of Charitable Remainder Trusts

• A charitable remainder trust may be funded with cash, securities, or real estate. If real estateis to be contributed, the College requires that donors select a trust institution or otherqualified trustee to manage the Charitable Remainder Trust.

• All donations of real estate shall first be subject to a thorough review as described in theguidelines pertaining to real estate.

• ‘Ihe charitable remainder trust is a form of a residual interest gift. The donor (‘settlor”)transfers property to a trustee who holds and manages it. If the property is incomeproducing, the net income will be paid to the donor and/or other named beneficiary. \\‘henthe trust terminates (either at the death of the beneficiary (les) or after a term of years), thetrust remainder is distributed to the College. If the trust is irrevocable, the donor is entitledto a gift receipt fur the present value of the residual interest.

• If the donor selects an outside trustee, the trust may be funded with an property of anyvalue that is acceptable to the trustee.

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• Ihe trust agreement shall be drafted by the donors own legal coctnsel and reviewed by the(ollege’s legal counsel prior to acceptance.

Gifts of Stock OptionsAs a general rule, the College will not accept stock options from indivIduals or corporations andwould recommend that the donor first exercise the option and then donate the underlying shares.



ALSEPT* COLLEGE OF ANn • DESIGN

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REFERENCE

• (anada Income TaxAct and Canada Revenue Agency Charities Directorate guidelines asapplicabic to registered charitieshttp:/ /w\vw.cra-arc.cca/cht-ts-gvng/chrts/plcv/mcnu-eng.html

• (wernment of Alberta’s Charitable Fund-raisthff Act c.C-9• Government of Alberta’s Personal Information Protection Act c.P-6.5• Government of Alberta’s SocietiesAct c.S-14• Government of Alberta’s Freedom ofInformation and Protection ofPrivacj Act (‘FOIPP Act,)• ACA1) Donor and Gift Confideiitialij Procedure• \ CAl) Donor Reco,gnition a/if! Xaming Poticj and retatedprocedures• \ ( \ I) Fundraising Coo tdi,iation and Piv3pect Iamgeinent Piecediire• \ C \ 1) G/1 Acceptance Procedure

\ I P Donor Bitt ofRights• A [P Code ofEthical Pthictbtes and Standards

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APPENDIX APROCEDURE MANAGEMENT RESPONSIBILITIES

‘Ihe Senior Devclopment Executive, having Policy and Procedure Management Responsibility, shallbe responsible for the following actions:

• Ensuring the sub-policy and related procedure is reviewed by the relevant committee andtaken to the Board for approval according to the frequency required under that policy.

• [pdating the policy and related procedure with wording that reflects the intention of thecommittee overseeing the policy and/or the Board.

• Amending the “Reviewed date” on the policy and related procedure• Ensuring the revised wording of the respective policy and related procedure is included in

the overall “Gift Acceptance PolipI’ and related procedure documents stored on ACAD’sInfolab.

• Ensuring that the overall “Gift Acceptance Potip” and related procedure documents areproperly checked in to the Infolab library and that the version control reflects the history ofthe changes made.

• Communicating the changes to all users of the “Gift Acceptance Potipi” and related proceduredocuments and ensuting those users adequately understand the effect of the changes.

• Report on compliance.

I nsunng a report is provided to the respective oversight committee annually in Septemberconfirming compliance with each policy for the prior year, or describing any cases of noncompliance. The oversight committee shall advise the Development Committee and the Board ofany cases of non-compliance which present actual or likely material financial risk.

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