Policy: 2.13 Fundraising and Gift Acceptance Policy 
Section: Finance

Download Fundraising and Gift Acceptance Policy

1.Purpose  

Northern Association of Community Councils Inc.  (the “NACC”) relies on fundraising and philanthropy to deliver its mission and to encourage the solicitation and acceptance of philanthropic gifts, grants, sponsorships, and other related revenue sources. NACC values its relationships with all donors and strives to ensure openness and transparency in its dealings with the public and how private investment advances its mission. 

2. Scope

It is the responsibility of the NACC and its staff to ensure that the highest standards of professionalism are followed when accepting gifts and working with donors. 

The NACC will act in accordance with this policy and the Code of Ethical Standards of both the 

Association of Fundraising Professionals (AFP) and the Canadian Association of Gift Planners (CAGP). These policies should also be read in conjunction with the NACC’s other documents, including: 

  • Conflict of Interest Policy

3. Policy  

The Policy guides the NACC as it seeks and receives charitable gifts. It also establishes broad guidelines to assist the Board, staff and other individuals who are providing leadership in fund development. This policy provides a framework for determining whether to accept or decline gifts, and how gifts are received, acknowledged, and stewarded. 

4. General Definitions Used in This Policy

Gifts: For the purposes of this policy, “gifts” and “giving” refer to transfers of property by individuals, trusts, corporations, and organizations that irrevocably vest with the NACC.  

Charitable Gift (“Donation”): A voluntary transfer of property where any advantage received by the donor can be reasonably determined and donative intent is present.  

Vest: When legal ownership of the property has been transferred to NACC and all conditions (if any) have been satisfied. 

Advantage: Any direct or indirect benefit, gratuity, payment, commission, now or in the future that the donor or a Related Party is entitled to receive as a consequence (or condition) of a donation.  The value of Advantage must be reasonably determinable to calculate the Eligible Amount.   

Eligible Amount: The Fair Market Value (FMV) of the Donation less the Advantage (if any).  The Eligible Amount equals the value of the charitable donation receipt and that tax credit (or deduction) claimed by the donor. 

Related Party: Any individual, corporation, or trust (“person”) that is not at arm’s length from the donor. 

Donative Intent: If the Eligible Amount is equal to or greater than 20% of the FMV of the Donation, donative intent is evident, and a charitable donation receipt can be issued for the Eligible Amount. 

Fair Market Value: Fair market value (FMV) is the price that a property would sell for on the open market.  Except for Listed Securities, a Reasonable Assessment of the FMV of a non-cash property is a written, independent expert assessment of the FMV of the property. 

Gifts of Services: Gifts of Services are not property and therefore no charitable donation receipt may be issued. 

Organizations: Include governments, foundations, businesses, associations, and community groups.  Charitable donation receipts will only be issued for gifts from organizations on request. 

Prospect Management: Prospect management involves the coordination of donor and prospect relationships. 

Prospect Clearance: Prospect clearance is the approval process by which a staff member or volunteer is “cleared” to solicit a gift from a prospective donor.  Prospect clearance is determined by the Executive Director. 

5. Gift-Specific Definitions Used in This Policy

Listed Securities: Mutual and segregated funds, prescribed debt obligations, and any security listed on a designated stock exchange. 

Designated Stock Exchange: A designated stock exchange is a stock exchange, or a part of a stock exchange, that has been designated as such by the Minister of Finance and listed on the Department of Finance Canada website, or by any other means that the Minister of Finance considers appropriate. There are five designated stock exchanges in Canada: 

  • the Canadian National Stock Exchange (CNSX) 
  • the Montreal Exchange 
  • the TSX Venture Exchange (Tiers 1 and 2) 
  • the Toronto Stock Exchange 
  • the Aequitas NEO Exchange 

The list also includes many stock exchanges outside Canada, which have also been designated. 

Bequest: A donation made via the individual’s last will and testament.  Such gifts are deemed to made by the individual’s estate.  Tax receipts are issued to the estate for the Eligible Amount of the property on the date it is accepted (vests) by the NACC. 

Life Insurance: A contract between an insurance company and the policy owner (an individual or a corporation) to pay a prescribed amount to the beneficiary(ies) upon the death of the insured.  The owner is responsible for paying the required premiums to keep the policy in force and is responsible for assigning the beneficiary(ies).  The owner may also be named as a policy beneficiary.   

Permanent Life Insurance Policy: A life insurance contract that is guaranteed to pay the death benefit upon the death of the insured.  For the purpose of this policy, the NACC will consider ownership of the following types of permanent insurance: Term to 100, Whole Life, and Universal Life. 

Life Insurance – Death Benefit: The amount the insurance company is obligated to pay the beneficiary of the policy upon the death of the insured. The death benefit is tax-free to the beneficiary in the form of cash and must be received within 3 years of the death of the insured.   

Face Only or Face Plus Life Insurance Policies: A Face Only life insurance policy pays the death benefit stated on the face of the contract, and any cash or investments in the policy is retained by the insurance company. Face Plus contracts pay the amount stated on the face of contract PLUS the value of cash and or investments (if any) in the contract. 

Life Insurance Cash Value (CSV): An amount of cash and/or investments built up in a life insurance policy that the owner may withdraw if the policy is surrendered (cancelled). Cash surrender values are built up though premium payments that are more than the cost of insurance (COI). 

Cost of Insurance (COI): The amount required by the insurance company to keep the policy in force. The COI may be required for a prescribed period (e.g. to age 85), or for the life of the insured. COI may be increased annually (Yearly Renewable Term or YRT) or guaranteed to remain level for the duration of the contract.  

Yearly Renewable Term COI: A contractual feature of some policies where the COI is reassessed every year. Cost of insurance is extremely low when the insured is young, and as he or she ages, the COI increases.  These costs grow very rapidly later in life (e.g., 80+) causing underfunded contracts to lapse. 

Life Insurance Premium: A series of payments to the insurance company that are projected to fund the ongoing COI to keep the policy in force.  The amount of premium is determined based on numerous factors such as projected interest rates, the type of COI, projected dividend rates for premium offset options, and so forth. Premiums may be guaranteed to remain level throughout the contract and/or may be payable for the life of the insured or for a period of time (e.g., limited pay contracts).  

Limited Pay Life Insurance: A highly desirable situation where premiums are paid for a period less than life. Common examples include 10, 15, and 20 pay.  Death benefit, COI, and number and amount of premiums can be guaranteed, which in effect locks the policy in.  

Premium offset: A feature of participating whole life contracts where due to a significant build-up of investments inside the policy, the insurance company pays the premiums with its dividends. Such payments are not guaranteed and if dividends decrease, the owner may need to contribute more premium. 

Unlike limited pay, premium offset contracts are not guaranteed.  

Term-to-100 Life Insurance: The cheapest form of insurance. Premiums are sufficient to keep the policy in force and are payable for the life of the insured or to a specific age (e.g., 100). There is no CSV in these policies. If premiums stop, the policy lapses. 

Whole Life Insurance: A type of contract that guarantees the insured for his or her whole life. 

The policy will pay the death benefit if the illustrated premium is paid.   

Universal Life Insurance: A type of contract that offers flexibility to change many of the features of the contract. For example, owner can change the death benefit, investment options, premium loads, etc. The danger with Universal life policies that are invested in the market is that failure to meet market projections can lapse the policy. 

Fixed Value Preferred Shares: A class of shares that do not change in value. Shares feature an attractive dividend, are redeemable and retractable, have a fixed value stated on the share, and offer preferential treatment to other classes of shares in case of insolvency. This is a common tool used in financial planning for business owners.    

Redeemable/Retractable Preferred Shares: Redeemable preferred shares permit the company to buy its shares back at a fixed price and retire them to treasury, thus reducing the number of shares outstanding and decreasing its dividend payments. Retractable is similar in that the owner is obligated to sell the share back to the company for a fixed price. Both features are important when considering accepting this type of property as a charitable gift. 

Reasonable Assessment: An opinion on the FMV of the property from a qualified independent expert. An Actuary is to be used for life insurance policies and interests in trusts. A Chartered Business Valuator (CBV) is to be used for non-listed shares. A real estate agent is to be used for real estate.   

Graduated Rate Estate (GRE): A deeming provision where all gifts via the Will and designation donations are deemed to be from the estate and no other taxpayer.  To qualify as a GRE gift, the property must be transferred to the NACC within 60 months of death. A tax receipt may be issued to the estate for the FMV of the property on the date it is accepted by the NACC. 

Designation Donations: A designation donation is the proceeds from a life insurance policy, RRSP, TFSA, or RRIF. The importance of designation donations is that they are GRE eligible. 

6. Delegations and Authority 

  • The NACC ’s Board of Directors is involved in developing and approving the NACC ’s strategic plan from which fundraising goals and priorities are determined. 
  • The Board advises and assists the NACC administration in the planning and implementation of fundraising efforts in support of its programs, projects, and endowment fund.  
  • The NACC is a donor-centric organization, and is focused on upholding best practices in fundraising.  
  • The Executive Director, , oversees the development and execution of the fund development strategy for the NACC and is responsible for managing all aspects of the fund development program. 
  • Gift opportunities may come through any member of the administrative staff or Board. All opportunities will be brought to the Executive Director for review and possible action. The Executive Director and administrative staff will register the donation, negotiate the fund/donation agreement, arrange and or approve of independent expert assessments of any property, and manage stewardship of the donor as appropriate.  
  • Fund development authority and acceptance delegations are as follows: 

Gift Range : Delegated Authority

< $1,000 : Administrative Staff 
$1,000+ : Executive Director 
Bequest Gifts : Executive Director 
Non-Cash Gifts and Pledges : Executive Director 
Endowment Fund Additions : Executive Director 
Fundraising Partnerships : Executive Director 
Naming : Executive Director 
Gifts requiring additional consideration : Executive Director and Executive / Board 

 

  • The Executive Director may on occasion delegate authority to another member of staff. 
  • The Executive Director is responsible for prospect management and clearance. All approaches to current and prospective donors by staff and/or volunteers are coordinated through the Executive Director.  
  • The Executive Director is responsible for ensuring the maintenance of the office database for recording current and prospective donors, and fundraising revenue.  
  • The Executive Director will convene the Executive / Board for situations that do not fit this policy. In consultation with the Executive / Board, the Executive Director may consult and engage external advisers as required. The Executive / Board will also advise on the acceptance or rejection of specific non-traditional proposed gifts.    
  • The Executive Director will conduct regular reviews of gift strategies being promoted to NACC donors to ensure such strategies remain accurate, fulfill the needs of the NACC, and are compliant with existing or proposed legislation.  
  • The Executive Director will conduct a review every 3 years of all universal life and premium offset whole life insurance policies owned by the NACC to ensure that they are properly funded and will pay the illustrated death benefit. The Executive Director may consult with the Board and use external resources to assist with this review. 

7. Monitoring and Review

This policy will be reviewed every two years by the Executive Committee to ensure its continued relevance and alignment with the NACC’s goals.  Changes to the policy will be documented and communicated to the Board for approval. 

8. Board Acceptance

This policy will be approved by the Board of Directors. The President / Chair of the Board will sign and date the policy to indicate its approval and adoption. 

Appendix 1 - Procedures

1. Acceptance of Gifts

  1. The NACC seeks and accepts gifts from individuals and organizations that are consistent with and advance the mission and strategic direction of the organization.  
  2. The NACC will refuse a gift that may: 
    1. put the safety of anyone at risk; 
    2. morally, ethically, or legally expose the organization, or negatively affect the reputation of the NACC; 
    3. expose the NACC to risks that exceed the benefits of the gift; and/or 
    4. unduly restrict the NACC ’s ability to solicit or accept funds from other sources. 
  3. No donor can influence or determine the content of a program or service that the NACC delivers. 
  4. The NACC staff and/or volunteers will not present a gift proposal to a potential donor that the NACC cannot accept.  
  5. Where a proposed donation does not meet gift acceptance criteria, the Executive Director will work with the donor to present mutually satisfactory options. If a satisfactory arrangement is not found, the gift will be declined. 

2. Designated Gifts

  1. The NACC may accept designated donations subject to subsection 3(a) below. Where a donor wishes to specify that their donation or bequest be used for a specific purpose, a gift agreement will be created. The agreement must allow the Board of Directors to re-evaluate the restriction after a stated number of years. 
  2. Once accepted, all designated donations will be used for the purposes for which they were given and/or in accordance with the agreement. 
  3. Gifts which are designated to an Endowment Fund will be transferred to a NACC Endowment administered by a third-party (such as The Winnipeg Foundation or another community foundation in Manitoba), for the perpetual support of an Endowment Program if one is created for the NACC.   
    1. Designated gifts to the endowment will be documented by agreement if special acknowledgement is requested. 
    2. The NACC Endowment is held and managed under agreement with a third-party (such as The Winnipeg Foundation or another community foundation in Manitoba)  and all funds are vested in perpetuity. 

3. Standards of Practice

  1. Donors are counselled to seek the advice of an independent, professional legal and or tax advisor on gift planning. 
    1. NACC staff will not provide financial or legal advice to prospective donors when planning or negotiating a gift. 
    2. The NACC will not provide payment of any fees to the donor or to any advisors or agents acting on behalf of the donor.   
  2. Notwithstanding this statement of limits of accountability, no NACC staff member shall knowingly encourage a gift if the making of the gift is known or suspected to be contrary to the donor’s best interests. 

Types of Acceptable Gifts 

The NACC accepts outright and deferred gifts.  

4. Outright Gifts

An outright gift is a donation of cash or property in which the donor retains no interest, and which can be used immediately by the NACC.  

Guidelines

  • The NACC accepts outright gifts of any amount. 
  • Cash gifts can be paid by cash, cheque, credit card, e-transfer, and can be made online. Foreign currency cash donations will be receipted in Canadian dollars for the amount that is deposited into the NACC’s account.  
  • For a donor who wishes to receive a US tax receipt, through arrangements with The Winnipeg Foundation, donations from the US may be made to The Winnipeg Foundation, who will issue a US tax receipt and forward the proceeds to the NACC. 
  • A donor may complete a gift in a single transaction or make a pledge to be paid over a period of time mutually acceptable to the donor and the NACC. Recognition will occur when two thirds of the pledge has been paid. 

5. Gift by Will

(a) A gift by will (bequest) is a provision by will directing assets from an estate to the NACC. There are several types of bequests accepted by the NACC: 

  • A specific bequest which provides a specified sum of money, or a stated percentage of an estate or specific property, such as real estate or securities to the NACC; 
  • A residual bequest which leaves all or a portion of the residue of an estate to the NACC after providing for other beneficiaries; 
  • A contingency bequest which provides that the NACC receives all or a share of the estate in the event of the prior death of certain other beneficiaries. 

(b) Gifts by will to the NACC are eligible for a charitable donation receipt. The NACC recommends that donors consult a lawyer or estate planner before executing a will providing for a gift to the NACC.  

(c)  Recognition will be equal to the value of the gift receipted to the estate following death and may be accorded recognition at the appropriate category and level. In addition, the gift intention will be acknowledged, with permission of the donor, during the lifetime of the donor. 

Guidelines

The following guidelines govern acceptance of a gift by will. Upon request, sample bequest language will be made available to donors and their lawyers to ensure that the bequest is appropriately designated, is deemed feasible at the time of designation and that the proper legal name for the NACC is used.   

  • Donors are invited and encouraged to provide information to the NACC about their bequest and, if they so choose, to send the NACC a copy of the relevant section of their will. This enables the NACC to review the wording to ensure that the gift can be used in accordance with the donor’s intentions and allows for appropriate recognition during the donor’s lifetime; 
  • The NACC will not become involved in the execution or witnessing of a will. During the administration of an estate in which the NACC is a beneficiary, the Executive Director or a designate  -  in consultation with the NACC ’s legal counsel as necessary  - shall represent the NACC in dealings with the estate's executor; 
  • Once the property vests with the NACC, including a designated gift, the NACC will issue to the estate a charitable donation receipt for the Eligible Amount of the Donation. 
  • The NACC is aware of the Graduated Rate Estate timelines and will do everything in its power to expedite the acceptance of suitable gifts. 

6. Gifts of Life Insurance

(a) There are various methods by which a life insurance policy may be contributed to the NACC. A donor may: 

  1. Assign irrevocably a paid-up policy to the NACC with or without premiums owing; or 
  2. Name the NACC as a beneficiary of the death benefit. 

(b) When ownership is irrevocably to the NACC, the donor is entitled to a donation receipt for the net cash surrender value (if any) or the FMV of the policy as determined by an actuary. Once the policy is assigned to the NACC, any premiums subsequently paid by the donor are charitable gifts eligible for a charitable donation receipt. 

Guidelines

  1. Donation of an existing policy:  
    1. A donor may donate an existing policy by assigning the NACC as the owner. The NACC will then name itself beneficiary of the policy. Upon the donor’s death, the NACC receives the death benefit and any additional accumulated value pursuant to the terms of the policy and not as a Donation. 
    2. At the time the policy is donated, the NACC may issue a charitable donation receipt for the net cash surrender value including accumulated dividends and interest (if any) of the policy, or the FMV of the policy.  
    3. If the policy is not yet fully paid-up, the donor may receive charitable donation receipts for any additional premium payments made by the donor after the policy is assigned. Premiums may be paid directly to the insurance company, or to the NACC. If paid to the insurance company, tax receipts will only be issued upon written notice of premium payment from the donor’s life insurance company.  
  2. Recognition:  
    1. Donor recognition will be equal to the value of the charitable donation receipt issued for the policy’s cash surrender value or FMV, at the time that the policy is transferred. The donor may be recognized for their cumulative gifts including premiums paid during their lifetime, and as a member of the Legacy Circle. The donor may be recognized posthumously at a level equal to the value of the policy (death benefit) and their cumulative gifts at death. 
    2. If, during the donor’s lifetime, they cease to make premium payments on the policy, recognition will be limited to the premiums paid by the donor while living. The donor will not be entitled to donor recognition posthumously at a level equal to the value of the policy at death. The NACC may choose to surrender the policy for its cash value or choose to continue premium payments; in either case, no other recognition will be accorded the donor beyond their last premium payment. 
  3. Donation of a new policy: The aforementioned factors also apply to the donation of a new policy. Given that it is not likely for new contracts to meet the ROI expectations of the NACC, the NACC does not encourage the donation of a new policy. Donors interested in making contributions to fund new policies should instead make contributions directly to the NACC to be invested.   
  4. Donors naming the NACC as a beneficiary: Premiums paid for life insurance policies in which the donor retains ownership are not eligible for a charitable donation receipt during the donor’s lifetime, either for naming the NACC as a beneficiary or for paying the premiums. However, any death benefit ultimately received following the death of the donor is a donation and eligible for a charitable donation receipt to the donor’s estate.   
  5. Recognition: If the NACC receives all or part of the death benefit following the death of the donor, the donor may be recognized posthumously for the value of the death benefit at the appropriate category/level, and the estate will be receipted as such. 

The following guidelines pertain to all gifts of life insurance: 

  • The NACC will not generally accept an insurance policy that requires more than 10 premium payments.  
  • The NACC generally expects the Return on Investment for receiving the death benefit to be at least 6%. 
  • The growth rate projected in the policy should generally be guaranteed or a maximum of 3%. 
  • The COI should generally be guaranteed level. 
  • Face Plus contracts are preferred. 
  • The premiums should generally be guaranteed level. 
  • A Memorandum of Understanding confirming the donor’s wishes may be prepared for signature by the NACC and the donor. 
  • The acceptance of a gift of life insurance will involve the Executive Director or her/his designate. The Executive Director or her/his designate will generally: 
    • request a copy of the donor’s life insurance policy or sample contract that the donor’s representative attests in writing, exactly mirrors the donor’s policy; 
    • ensure the policy meets the conditions stated above, noting that many policies contain options to convert them into a suitable contract; 
    • contact appropriate advisers to provide recommendations on how best to proceed with the contract if issues are present or suspected; 
    • obtain a current copy of the FMV assessment from an actuary if the donor wishes to donate the policy and receive a charitable donation receipt for the FMV of the policy;   
    • issue a charitable tax receipt for the appropriate value upon receipt of confirmation of the assignment of a life insurance policy to the NACC and the actuarial assessment;   
    • review annual statement from the insurance company to ensure that the policy remains in force with no anticipated issues; 
    • review in order to recommend to the NACC Board of directors whether to pay the premiums or cash in the policy when premiums on uncompleted policies remain outstanding. The NACC Board reserves the right to make this determination. 

7. Gifts of Retirement Plan Assets

Potential supporters of the NACC may have RRSPs, RRIFs, TFSA, or other retirement plans and where the value of the assets involved may be more than the donor will need during retirement. It might be appropriate for donors to use these assets to make current outright gifts of cash from their retirement plan, in which case the NACC may issue a charitable donation receipt in the amount of the cash when received. In other cases, it may be preferable to have retirement plan assets contributed upon death, by the donor designating the NACC as the beneficiary of any remaining plan assets at the time of death. In that case, no charitable donation receipt is issued on naming the NACC as the beneficiary, however, a charitable donation receipt may be issued to the estate in the amount of cash transferred to the NACC following the death of the donor. 

Guidelines

  • The NACC may accept current outright gifts of cash distributed from retirement plans. Donors are encouraged to consult with their financial advisers to determine that they can part with such assets without compromising their financial security and that the tax consequences are acceptable; and 
  • The NACC may also encourage beneficiary designations, again provided that the donor, upon consultation with his or her advisor, determines that this is compatible with the overall estate plan.  

8. Gifts in Kind

(a) The NACC will consider accepting gifts in kind provided they further the vision and mission of the organization. Acceptable gifts-in-kind include Listed Securities and fixed value preferred shares, real estate, gifts of interests in real estate and trusts. 

(b) The NACC will not accept gifts of crypto currency. Staff will advise prospective donors to sell the crypto-currency and donate the cash to the NACC. The NACC accepts gifts of goods that it would normally purchase if the gift had not been given. 

(c) Gifts of Auction Prizes / Silent Auction Prizes

From time to time, the NACC may solicit donations of prizes for fundraising auctions or otherwise in connection with fundraising events. Charitable donation receipts may be issued for the FMV of such prizes, in the discretion of the Executive Director.  In such cases, receipts for amounts greater than $1,000 shall be supported by a written appraisal by a qualified person with experience in valuing such items. 

(d) Gifts of Listed Securities

(i) The NACC may accept gifts of publicly listed securities. Donations of listed securities may be handled in one of two ways: 

  1. transfer of securities via book-based transfer — the donor may instruct his or her investment firm to transfer securities, in negotiable form, from the donor’s account to the NACC investment account; or 
  2. presentation of certificates — the donor may deliver properly endorsed certificates (signed off exactly as registered with signature(s) guaranteed by a bank or investment firm if required) to the NACC.  

(ii) The value of such a gift is determined as the value at the close of trading on the date the securities are received into NACC ’s brokerage account. If there is significant volatility in the security price on the day it is received into the NACC account, NACC will consider using the average share price on that day to determine the fair market value of the donated securities.  

  1. Gifts of listed securities will be liquidated upon receipt. 
  2. Recognition of all gifts of securities will be based on the receipted value of the gift. 

Guidelines: 

The following guidelines govern acceptance of a gift of listed securities: 

  1. The administration of a gift of securities will involve the Executive Director or her/his designate. 
  2. Donors will be encouraged to make gifts of securities via book-based transfer rather than in certificate form. In the case of a book-based transfer of securities between investment firms, the Executive Director or her/his designate will: 
    • consult directly with the donor’s and NACC’s investment firms; 
    • identify immediately to NACC ’s broker: 
      • name of delivering investment firm; 
      • name and number of delivered shares; 
      • CUSIP (Committee on Uniform Security Identification Procedures) number of shares; 
      • name of the donor; and 
      • request confirmation, for charitable donation receipting purposes, the exact date on which the securities were received in the NACC ’s investment account.  
      • In the event of US securities, the same procedures apply but will also include the CN / US bank exchange rate on the day of the transfer. The exchange rate will appear on the official receipt provided to the donor. 

(e) Gifts of Shares in Privately-Owned Companies

Donors may make gifts of privately-owned securities and partnership interests. These can be accepted by the NACC so long as the following guidelines are met: 

Guidelines: 

  1. Fixed value preferred shares may be accepted if they will not subject the NACC to penalties and can be sold immediately. Such a policy negates the need for a FMV assessment of the shares. 
  2. The NACC may issue a donation receipt based on the proceeds received by the NACC on the redemption of the shares.   
  3. The NACC ’s representative will provide a template agreement between donor and NACC outlining terms of gift which has been approved by the Executive / Board and legal counsel, if necessary, including: 
    1. Identification of shares to be donated, including number and class of shares, confirming redemption privileges and redemption value, beneficial and legal ownership of shares; 
    2. Terms of gift (date of transfer, and agreed date of redemption); 
    3. Terms of redemption (date, process for redemption, cashflow, timing); 
    4. A statement on the part of the donor to indemnify and hold harmless the NACC against any issues related to the shares once transferred to the NACC; 
    5. No receipt will be provided until the shares have been redeemed and the redemption price paid in cash; that receipt will be based only on cash received; 
    6. Payment for transaction costs and due diligence (if the NACC is required to pay, the costs will be deducted from the amount receipted to the donor); 
    7. Any agreed recognition associated with the donation. 
  4. The NACC should take sufficient due diligence steps to ensure cash is available for immediate redemption (or within a very short period of time). 
  5. The NACC retains the right to decline any gift of private securities if they are considered a liability to the NACC or are in contravention of its investment policy. 

8. Donor Recognition 

The generosity of donors assists the NACC in pursuing its mission and the NACC is pleased to appropriately recognize their generosity. 

Guidelines: 

  • The NACC may honour donors through naming and recognition subject to the terms and conditions laid out in the NACC’s Donor Recognition and Naming Policy. 
  • Donors have the right to remain anonymous subject to Canada Revenue Agency reporting requirements and for the purposes of issuing charitable donation receipts. 
  • Donor recognition shall equitably acknowledge the support of individual donors, foundations, organizations, and governments. 
  • The extent of recognition afforded donors shall be in accordance with the value of the contribution. 
  • The NACC accepts gifts made in honour of or in memory of the donor or anyone they may wish to designate. The donor will supply the NACC with the name of the person honoured or memorialized when the gift is made. At the donor’s request, notification of the donation will be sent to a third party, but the gift amount will not be disclosed unless the donor so requests. 
  • Gifts made by a donor on behalf of another individual are credited to the actual donor’s record and charitable donation receipts are issued to the person who made the gift. The individual on whose behalf the gift is made may be advised of the tribute. 

9. Privacy and Confidentiality 

Donors’ personal information will be protected, and confidentiality will be respected. 

Guidelines: 

  • The NACC adheres to both the Association of Fundraising Professionals and the Canadian Association of Gift Planners Codes of Ethical Fundraising and the applicable privacy laws of the Manitoba and the applicable laws of Canada. 
  • All NACC staff, volunteers and contractors are subject to confidentiality agreements that guarantee the security and confidentiality of the NACC ’s records and proprietary information. 
  • The NACC will not sell, trade, or rent its donors lists. 
  • The NACC will only collect, use, or disclose information that is necessary for the identified purposes as is required by law and for maintaining positive donor relationships. 
  • The NACC will protect information by security safeguards appropriate to the sensitivity of the information. 
  • Donors and/or prospective donors may request to see their personal records. 
  • Donors who wish to remain anonymous and not be included in published lists of donors must state so at the time of the gift. A check box offering anonymity will be provided by the NACC on all donor response forms. Completion of the donation remittance form or mention of the donor’s name on any correspondence accompanying the donation is deemed written permission to be included in published lists of donors.  
  • Donors may request and receive a complete copy of gift records to the NACC. Only authorized NACC staff and authorized members of the Board are permitted to view donor files. 
  • An opt-out provision to receive information from the NACC will be included in all donor solicitations. 

10. Tax Receipts 

Donors are issued receipts in accordance with the Canada Revenue Agency guidelines and this policy, each as amended from time to time.  

11. Amendments 

These policies and guidelines may be amended at any time by a majority vote of the Board. 

Appendix - Donor Bill of Rights  

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 not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights: 

  1. To be informed of the organization’s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes. 
  2. To be informed of the identity of those serving on the organization’s governing Board, and to expect the Board to exercise prudent judgment in its stewardship responsibilities. 
  3. To have access to the organization’s most recent financial statements. 
  4. To be assured their gifts will be used for the purposes for which they were given. 
  5. To receive appropriate acknowledgment and recognition. 
  6. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law. 
  7. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature. 
  8. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors. 
  9. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share. 
  10. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.