Donation Policy

INTRODUCTION
Brock University has flourished through the commitment and generosity of a growing circle of supporters. This support has allowed the University to fulfill its mission of teaching, research and service to the community. To administer these donations in an appropriate manner, the University has adopted the following donation policy.

PURPOSE
The purpose of this policy is:

• To clarify who may solicit donations on behalf of the University.
• To define the various roles and responsibilities of the parties involved in the donation process.
• To identify the circumstances under which a donation receipt will be issued.
• To ensure that the University operates in accordance with Canada Revenue Agency (CRA) with respect to all donations.
• To outline when gifts will be accepted on behalf of the University.
• To establish gift valuation criteria.
• To provide guidelines on named and gifts with specific terms of reference.

Professional and successful fundraising requires organization and discipline to ensure that a prospect is being approached for a single approved project at the right point in the donation cycle and not continually and concurrently solicited by various entities within the University. Therefore, while faculty and staff are encouraged to cultivate potential donors, no person shall solicit donations on behalf of the University unless authorized to do so by the Office of Development and Donor Relations through the Prospect Management Guidelines.

The Office of Development and Donor Relations is responsible for

1. Coordinating the solicitation of donations through the Prospect Management Committee.
2. Coordinating the efforts of all areas of the University to assess a gift's acceptability.
3. Administering (e.g. receiving, valuing, recording, depositing, balancing & preparing all required reports for) all donations.
4. Issuing charitable tax receipts for donations in accordance with CRA regulations.
5. Acknowledging gifts to each donor in accordance with the Donor Relations Policy.
6. Acknowledging gifts to the University's recipient.
7. Directing donations to the appropriate accounts, in conjunction with the Finance Department.
8. Operating to ensure the charitable status of the University and its foundations are maintained.
9. The Board of Trustees has delegated the investment of all gifts, including endowments, to the Investment Committee. This committee operates in accordance with the Investment and Endowment Policies.

CRA defines a gift as "a voluntary transfer of property without valuable consideration. No benefit of any kind may be provided to the donor or to anyone designated by the donor, except where the benefit is of nominal value." Consistent with both the wishes of our donors and CRA policy, the University will exercise all due diligence to ensure that the donor recognition costs are kept to reasonable levels.

Where the University provides something of value in return for a donation, the fair market value of the benefit received will be deducted from the original amount of the donation received. The Office of Development and Donor Relations should be consulted where the value of the benefit received is unclear, or to determine if the benefit is of nominal value or not. The Office of Development and Donor Relations will contact CRA, if necessary.

Donations require an "arms length" relationship between the donor and the beneficiary when a charitable tax receipt is to be issued. Where no "arms length" relationship exists or, where the donor controls the use or specifies a person or family to receive the funds (e.g. private benevolence), no receipt will be issued. Business receipts, not charitable tax receipts, are provided for corporate sponsorships and private benevolence.

Gifts will qualify for current calendar year charitable tax receipts if they are post marked in the current year or officially received at the University in the current year.

The Office of Development and Donor Relations will work with all donors and recipients to ensure that the terms of reference for all gifts can be satisfied. The Office of Development and Donor Relations will ensure relevant Officers are consulted prior to gift acceptance in the light of donor stipulations, fund matching possibilities, ongoing costs including insurance coverage, and other implications.

The Board of Trustees has set forth the signing authorities required to accept gifts in the Signing Resolutions. While the University will make every effort to accept all gifts, it retains the right to refuse the offer of any gift. The refusal may be the result of difficulties in administering the gift in accordance to the donor's wishes, special storage requirements, the inability to obtain a cost effective objective appraisal, environmental issues associated with the gift, the illegal nature, or other factors that deem the gift unacceptable.  The University may also refuse a gift if its acceptance is incompatible with its mission, image and values, or compromises the autonomy of the institution.

Suitability of a gift will be determined in accordance with the Prospect Management Guidelines. If necessary, adjudication will be conducted by the Provost in consultation with the Vice President, Advancement.

The University will make every effort to accept all gifts, but retains the right to refuse the offer of any gift. The refusal may be the result of difficulties in administering the gift in accordance to the donor's wishes, special storage requirements, the inability to obtain a cost effective objective appraisal, environmental issues associated with the gift, the illegal nature, or other factors that deem the gift unacceptable. The University may also refuse a gift if its acceptance is incompatible with its mission, image and values; limits or imposes conditions on academic freedom; or compromises the autonomy of the institution.

Where events or information available subsequent to gift acceptance occurs, which constitutes a significant and continuing challenge to the University’s reputation, the University will seek legal counsel to resolve the issue within the law.

A gift-in-kind is a gift of property other than cash. It can be real property (e.g. real estate, securities), personal property (e.g. art, jewelry) or intangible property (e.g. patents, license). However, a gift of service is not a gift-in-kind that is eligible for a charitable tax receipt. Gifts-in-kind may be retained by the University and used for purposes consistent with its objectives or may be liquidated, if not contrary to the donor's explicit wishes.

The Office of Development and Donor Relations follows the regulations set out by the CRA governing the valuation of gifts-in-kind. A charitable tax receipt is issued for the fair market value of the gift at the date the ownership is transferred to the University. In most cases, this will require some pre-advice and planning with the Office of Development and Donor Relations .

Where a charitable tax receipt is provided, CRA guidelines permit qualified personnel within the University to appraise items valued at $1,000 or less. If the value is greater than $1,000, a third party (i.e. arm's length from both the donor and the University) appraisal is required from a qualified appraiser.

The University will obtain a second appraisal where the value of the gift is greater than $100,000 or the gift is real estate. If the difference in value between the two appraisals is less than 10%, the University will take the lower of the two. Where the difference is greater than 10%, a third appraisal will be considered if the cost of the appraisal is less than 1% of the value of the asset. In either case, the average of the appraisals will be the final deemed fair market value.

To ensure independent appraisal integrity, the Office of Development and Donor Relations or the recipient Faculty/Department will bear the cost of the appraisal, not the donor. The recipient Faculty/Department will absorb all transfer and ongoing maintenance costs.

Gifts of cultural property (not necessarily of Canadian origin) may be entitled to special tax treatment under CRA. The Canadian Cultural Property Export Review Board (CCPERB) is responsible under the Cultural Property and Export and Import Act (CPEIA) for certifying property as cultural property that is of "outstanding significance and national importance" and also for determining the fair market value of such property for income tax purposes. The University, which includes Rodman Hall, must apply with the donor for this certification.

Gifts of land (i.e. servitude, covenant or easement) may be entitled to special tax treatment. The Minister of the Environment is responsible for certifying land as ecologically sensitive land "important to the preservation of Canada 's environmental heritage".

The University accepts gifts of securities. The University normally liquidates all securities received as donations. However, the University may decide to keep the securities if they are consistent with the University's currentInvestment Policy, as approved by the Board's Investment Committee.

Where a charitable tax receipt is not required, the receiving department will still work with the Office of Development and Donor Relations in accepting the gift-in-kind. This will ensure:

- the value of the gift is added to the capital records of the University,

- sufficient insurance coverage is obtained,

- andthe donor is recognized in accordance with the Donor Relations Policy.

The University welcomes donations made by will, gift annuity, life income agreement, living trust or life insurance. The University will provide guidance to individuals who are considering a planned gift. Prospective donors are always encouraged to retain their own, independent advice.

Naming Policy

INTRODUCTION

• To clarify the process under which assets are named.
• To identify the circumstances under which names will not be accepted.
• To communicate the rationale for removing names from assets.

1. The University may from time to time name buildings or other assets after individuals who have made significant contributions to the life of the University or the community at large. Such naming opportunities will normally be reviewed by the Advancement and Community Relations Committee and recommended for approval to the Board of Trustees.

2. In the instance of philanthropic recognition, donors will be treated equitably in accordance with the Donor Relations Policy. Philanthropic recognition may be in the name of the donor or in memory/ honor of another individual, group or organization. The final decision for naming assets rests with the Board of Trustees.
3. In the context of major campaigns and otherwise, the Office of Development and Donor Relations will propose a schedule of naming opportunities for approval by the Board of Trustees. Naming proposals for assets other than those on the approved schedule may also be considered from anyone in the University or public community.
4. Naming will only be approved where the donor has signed a pledge for the gift, requested the facility to be named, and provided the name to be recognized.
5. Unless otherwise negotiated with the donor and agreed by the Board of Trustees, the duration of the naming will be the useful life of the asset. In the case of an endowed award or chair, this would be in perpetuity. In the instance of a building or other facility, this would be until a change in function, major renovation or demolition.

6. While the University bears responsibility for financing regular maintenance and wear and tear, major renovations may require funding from the private sector. In the event of such renovation of a donor-named facility, the Office of Development and Donor Relations will offer right of first refusal to provide the private sector funding required to the donor which/who carries the designation. Should the donor decline, the University will have the option of naming an equivalent asset for the original donor and seeking funding from another donor for which the renovated facility may be named.
7. In the instance of a fundamental change in function of a facility named for a donor, the Office of Development and Donor Relations will consult with the donor. Should the donor not wish to be identified with the facility's new function, the University will offer an equivalent naming opportunity. The facility may be offered for naming in the context of its new function.

8. Naming will not be approved where, in the judgment of the Board of Trustees, identification with the recognized individual or organization would constitute a significant and continuing challenge to the reputation of the University.

9. An asset will be de-named only by the authority of the Board of Trustees in one of only two circumstances:
   
   • where events or information available subsequent to the approval of the designation mean that identification with the designation constitutes a significant and continuing challenge to the University's reputation or,
   • where a donor has failed to meet pledge commitments over a minimum of one half of the agreed pledge period and where there is no satisfactory commitment to revised pledge terms.