Category:
Financial Administrative / Number:
C-FIN.51 / DONATIONS
Type: / Authority: / Approved By:
☒ Policy
☐ Procedure / ☒ Council
☐ Administrative / ☒ Council
☐ Chief Administrative Officer
☐ Department Head
Office of Primary Responsibility: Parks, Recreation and Culture
Date Adopted:
January 18, 2016 / Council Resolution No:
RC16/018 / Date to be Reviewed:
January 18, 2017
Manner Issued: Email, Pipeline
BACKGROUND:
This policy is intended to articulate the circumstances under which the District of Mission will accept donations and to outline the process for assessing, accepting and recognizing those donations.
The District of Mission is a public body that delivers a wide range of valued programs and services. Through donations, the District will be able to expand and enhance its program offering to the community.
This policy is intended to provide guidelines that ensure that the goals of the donor and the District are aligned, the public interest is respected and the integrity of municipal programs and services is protected.
PURPOSE:
Scope:
1. Except as otherwise set out, this policy shall apply to donations from private citizens and/or businesses which contribute either financially or in-kind to District programs, services or facilities without any expectations for recognition, public acknowledgement, or other promotional considerations.
2. This policy shall not apply to:
· corporate sponsorship arrangements that fall under the municipal Sponsorship Policy;
DONATIONS
C-FIN.51
· advertising sales;
· funding or gifts in-kind obtained from other levels of governments through normal transfer payments or grant programs; and
· fees charged, purchase of service agreements, leasing of property, or similar revenue earned by the Municipality.
POLICY:
1. DEFINITIONS
For the purposes of this policy, the following definitions will apply:
“Cash” means any common currency, cheques, money orders and credit cards normally accepted by the District.
“Corporate Sponsorship” means a mutually beneficial business arrangement or partnership between the municipality and an external company, organization or enterprise wherein the external party contributes funds, goods, or services to a municipal project, service or initiative in return for recognition, acknowledgement, or other promotional consideration.
“Donation” means a gift by a donor at arm’s length of the municipality. No advantage can accrue to a donor or to any person dealing at arm’s length to the donor as a result of a donation. A donation may be in the form of cash or in kind, meaning a security, a tangible capital asset, a cultural asset, or real property.
“Donor Recognition” refers to the acknowledgement and expression of thanks issued for a donation.
“Gifts” means a contribution of cash or property to the District, for which the donor receives no legal consideration.
“Gifts-in-Kind” means contributions of corporate products and/or other assets without charge or purchase usually in return for published acknowledgement.
“Non-qualifying Donee” means an organization that is not qualified to issue tax deductible donation receipts as per Canada Revenue Agency.
2. DONATION ACCEPTANCE GUIDELINES
a) The donation must:
· be consistent with the mandate, policies and objectives of the District of Mission;
· enhance the development, delivery, awareness or continuance of one or more District programs, services, or facilities; or provide for the delivery of programs and services by the community in a manner deemed by the District to be efficient, effective and in the best interests of the community at large;
· take into consideration the long term implications on staffing and financial resources beyond the life of the donation;
· be subject to any other applicable approval process mandated by legislation, regulation, bylaw or Council resolution;
· be in a form acceptable to the District;
· take into consideration the anticipated community impact of the donation, particularly when the donor’s products or public image may be deemed sensitive.
b) The donation must not:
· imply endorsement of the donor or, if the donor is a company, imply endorsement of its products and services and should prohibit corporate partners from making statements which suggest a company’s products and services are endorsed by the municipality;
· result in or be perceived as giving any preferential treatment outside of the donation framework;
· be accepted from individuals or corporations currently not in good standing with the municipality (i.e. currently in violation of a bylaw or under litigation or delinquent on payments owing the DOM);
· cause a municipal employee or elected official to receive any product, service or asset for personal use or gain;
· cause a municipal employee or elected official to receive any product, service or asset for personal use or gain;
· be accepted from any corporations recognized as producing tobacco products;
· be accepted from any corporations recognized as producing beer, wine, or alcohol products except for special events not exclusively or primarily targeted at children or youth and held in facilities that can be licensed under the BC Liquor Control Board; and
· be accepted from any corporations who in any manner portray, promote or condone stereotyping of any group or discrimination as defined by the Canadian Human Rights Code; and
3. VALUATION OF IN-KIND DONATIONS (this is only required if a tax deductible donation receipt is to be issued)
· Should Council choose to accept and retain an in-kind donation, the donation will be assessed at its fair market value.
· A donation of inventory by a business is valued at its normal retail price.
· Where a public market does not exist to establish fair market value of an in-kind donation an independent appraisal may be required.
· A donor may be asked to make a cash donation to cover the costs of an appraisal.
4. DONATION AGREEMENTS
The agreement will be in the form of a letter (for donations less than $5,000); a memorandum of agreement (for donations of $5,000 to $25,000) or a contract (for those over $25,000). It will outline the following, at a minimum:
· what the donor is contributing and what the value of the contribution represents;
· the dispositions and ownership of any assets resulting from the donation;
· responsibility for the maintenance, insurance and taxes of all assets associated with or resulting from the donation; and
· the duration of the donation (if applicable).
5. USE OF DONATED FUNDS
a) The District cannot issue tax deductible donation receipts for a donation that is designated to be used for a non-qualifying donee such as a non-profit organization. A non-qualifying donee cannot be the ultimate recipient of the gift or gift-in-kind.
b) The District must retain active control over the use of donated funds, i.e. must actively oversee the use of donated funds. The District is not required to return donations to the donor if requested.
c) Donors can designate the funds be used for a program or project. The District is required to use the funds within that program or project. It must be a program that is currently in place or a new program that falls within the scope and mandate of the District of Mission. Council may name a project that it wants to support through donations and other sources of funding. The District will collect the donations for each project and ensure that the donations are spent only on the targeted project.
6. INDEPENDENCE FROM UNDUE INFLUENCE
a) To ensure that the District retains an arm’s length relationship with a donor and as such, is not subject to undue influence; donations cannot be solicited or accepted from the following:
· A party to an application for an approval, license or permit, or
· A bidder, proponent or applicant or any party not acting at arm’s length from a bidder, proponent or applicant to an open procurement.
b) The District cannot accept donations that are conditional upon the endorsement of any product, service or supplier.
7. ISSUING TAX DEDUCTIBLE DONATION RECEIPTS
a) Donations can be accepted without the donor requesting a tax deductible donation receipt. This may be applicable to businesses that will claim the donation as an expense.
b) In the event that a donor requests a tax deductible receipt the DOM Finance Department has to approve that the receipt can be issued before the donation is accepted.
c) Tax deductible donation receipts will only be issued upon request by the donor and will only be issued for donations with a value in excess of $50.00.
d) Tax deductible donation receipts will be issued no later than January 31st of the following year.
e) Tax deductible donation receipts will be issued by the Finance Department and signed by either the Deputy Treasurer/Collector or the Manager of Finance.
8. DONOR RECOGNITION
a) Donors in receipt of a tax deductible receipt can only receive nominal recognition (website acknowledgement, thank you letter etc.) from the District per the Canada Revenue Agency, this is defined as having fair market value equal to:
· $50.00, or
· 10% of the amount of the gift.
b) Advertising may disqualify the donor from receiving a tax deductible donation receipt depending on the value of the advertising.
9. OTHER LEGISLATION
Where there is a conflict between this policy and legislation from a senior level of government (i.e. Canada Revenue Agency CRA), the more restrictive will apply.
*** END OF POLICY ***
RECORD OF AMENDMENTS/REVIEW
Policy # / Date Adopted / Date Reviewed / Amended (Y/N) / Date Reissued / Authority (Resolution #)C-FIN.51 / 18-Jan-2016 / RC16/018
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