Introduction
The Board recognizes the utmost importance of ensuring that all gifts to the Abbotsford Community Foundation are made pursuant to legal and ethical regulations, and guidelines.
The establishment of this policy is to clarify the roles, responsibilities and expectations of both the Foundation and its donors. The policy guides the Foundation to act in a consistent and timely manner in exercising its fiduciary responsibility.
The policy applies to gifts for which a tax deductible charitable receipt is to be issued.
The Donor
Interests - The donor's interests and wishes will always be the first priority to be considered by board members and staff acting on behalf of the Foundation in fund development activities.
Agreements - The Foundation will ensure that the donor is fully aware of the consequences of making a gift prior to signing a fund agreement. The Foundation will not accept the gift unless the donor understands the work of the Foundation and how the capital and its income will be used. A standard form of agreement will be used as the basis for all funds. The Foundation aspires to work with donors to personalize these agreements with respect to the name and nature of the fund, and the use of the fund's income. Where terms are expressed unilaterally, such as in a will, the Foundation encourages donors to discuss their wishes in advance.
The Gift
The ways to make gifts to endowment funds are many and diverse. Some of the possibilities include the following:
Cash, or equivalents such as GIC's and T Bills
Publicly listed securities
Bequests by Will
Life Insurance
Charitable Remainder Trust
Gift with Residual Interest
Property - in which the Foundation may invest pursuant to its investment policies.
Canada Customs and Revenue Agency prohibits foundations from incurring debt obligations; therefore the Foundation cannot issue charitable annuities or accept gifts of interest free loans.
All gifts of cash and cash equivalents made to the Foundation will be placed in the Foundation's investment portfolio. All gifts of property and publicly listed securities will be sold as soon as practicable and the proceeds invested in accordance with the Foundation's investment policy.
The Receipt
The Foundation will issue a tax receipt once the gift is legally the property of the Foundation. The receipt will be issued for the value of the gift, as at the date it becomes the Foundation's property.
General Conditions
The Foundation in accepting gifts will apply the following general conditions:
All gifts must be consistent with the overall mission of the Foundation. A gift must not compromise the integrity and nonpartisan status of the Foundation in the community, or undermine its classification or status under the terms of the Income Tax Act of Canada.
The Foundation reserves the right to refuse to accept a gift the origin of which may bring the Foundation into disrepute.
The Foundation is not able, because of the potential for a conflict of interest, to act as the executor of a donor's will or as a trustee of a charitable remainder trust.
The Foundation will be bound by all applicable statutes with regards to the reporting of the sources of gifts received.
The Executive Director may accept outright gifts of cash, publicly listed securities that are freely tradeable and life insurance. All other gifts will be reviewed by the Executive Committee before undertaking to accept.
Administrative Fee
The Foundation adopts policies from time to time that impose administrative charges on its endowment funds. The Foundation will apply its policies equitably to all funds under its control and may amend such policies on a continuing basis.