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Queen's University
 

Gift Acceptance Policy

Original Approved: November 1997
Procedures Revised: February 1999
Full Review: November 2002
Approved by the Board of Trustees December 2002

PART ONE: Glossary of Key Terms

Gift:

A voluntary transfer of cash and kind, from individuals, industry, foundations and other sources to the University for either unrestricted or restricted utilization in the operation of the University. Gifts are made without expectation of return; no consideration - no benefit of any kind - to the donor or to anyone designated by the donor, may result from the payment.

Gifts may be monetary (cash, cheques) or non-monetary e.g. securities, real property, or personal property).

Private Grants:

Revenues received by the university from individuals, industry, foundations, governments, and other sources, for the support of University programs/projects. Such grants are like gifts – they are donative in nature and they are bestowed voluntarily without expectation of any tangible benefit in return.

Contracts/Research Agreements:

Restricted payments received by the University from various contractors, made in accordance with the terms of contracts entered into by the university to conduct specific programs. These are not considered gifts, and therefore not subject to this policy.

Official Charitable Receipt:

The official charitable receipt is a statement issued by the University to donors that includes the business number issued to the University by Canada Customs and Revenue Agency, a declaration as to the value of the gift, date of the gift and name of the donor. Receipts are normally accepted by the Canada Customs and Revenue Agency to support the calculation of the allowable "non-refundable tax credits".

Gift-in-Kind:

Donated tangible and intangible assets and property such as real estate, notes, mortgages, limited partnership interests, royalty or copyright interests, art, books, equipment, automobiles, inventory, personal property, securities, and other physical assets or materials, which represent value to the University.

Expendable gifts:

Gifts or grants given to the University, which the donor has directed are to be are immediately used in support of various programs or projects.

Retained gifts:

Gifts or bequests, given to the University, to be held permanently for the income derived, as part of the University's endowment fund.

Designated gifts:

Gifts, given to the University, where the donor has specified where in the University the support is to be directed. Gifts may be "designated", for instance, to a particular faculty or school.

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Undesignated gifts:

Gifts, given to the University, where the donor has not specified where in the University the support is to be directed.

Unrestricted gifts:

Gifts, given to the University, where the donor has not specified the purpose for which the gift is to be used.

Restricted gifts:

Gifts,given to the University, where the donor has specified that the gift is to be used to support a particular purpose.

Note: For instance, a gift may be "designated" by a donor to the Faculty of Applied Science and restricted as to purpose for buying library books. Or, a gift may be "designated" to the Faculty of Health Science, but unrestricted as to use in that setting.

Gift Pledges:

Gift contributions to Queen's University, which are "pledged" over a period of time (normally to a maximum of 5 years, depending on the size of the gift and the nature of the appeal).

PART TWO: Gift Acceptance Policy

  1. Background

    The importance of voluntary charitable contributions to Queen's University at Kingston is increasingly apparent. Queen's University welcomes gifts, which enable it to fulfil its mission of teaching, research, and community service.

    Through the promotion of voluntarism and philanthropy, the Office of Advancement1 provides central friend-and-fund-raising support to assist the University. Federal and provincial governments encourage voluntary gift support of charitable organizations such as Queen's University, and allow substantial tax relief to donors.

    The significance of these tax laws makes it an important obligation of the University to record and acknowledge all gifts received. The Office of Advancement is responsible for issuing official charitable receipts for all charitable gifts received by Queen's University in compliance with the requirements of the Income Tax Act, and in accordance with procedures established by the University2. Queen's University at Kingston is a registered charity under Canada Customs and Revenue Agency and IRS guidelines. Its business number is 10786 8705 RR0001.

  2. Rationale

    This document has been established to:

    2.1 ensure that informed decisions are made on the acceptance of gifts and that such gifts are receipted in accordance with the requirements of the Income Tax Act
    2.2 ensure that efficient administrative, legal, and accounting practices and procedures are followed
    2.3 enable accurate reporting of gifts bestowed upon Queen's University and its affiliated organizations
    2.4 ensure consistent, equitable relations with donors

    In order to ensure that this Policy continues to be effective, it shall be reviewed periodically. The Office of Advancement is responsible for initiating this review (every 5 years minimum).

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  3. Scope

    This policy is established to govern the acceptance of all gifts made to Queen's University and any of its subsidiaries or affiliated organizations, 3 whether such gifts are inter vivos (lifetime) gifts or gifts from estates.

  4. Policy for Gift Acceptance

4.1 Queen’s University holds itself to a high standard of ethical conduct, both within its own community of scholars, students, alumni and employees, and in all of its external relationships and interactions – with businesses and commercial enterprises, with other external organizations, and with friends and donors.
4.2 
 In particular, the University will not accept gifts, enter into business relationships, or accept external support that will compromise its public image or commitment to its academic mission and essential values as articulated in the University’s “Principles and Priorities”.
4.3
Queen’s University values and will protect its integrity, autonomy and academic freedom, and does not accept gifts when a condition of such acceptance would compromise these fundamental principles.
4.4   Ownership of all gifts directed to Queen's University vests in the University, whether said gifts are for the benefit of the University generally or for some specific purpose in it.
4.5 Queen’s University may elect to accept or decline any gift. The final decision to decline a gift rests with the Board of Trustees.
4.6 Acceptance of any gift contribution which involves a proposal to name is conditional upon final approval of the naming by the Board of Trustees4, since ultimate authority for naming at Queen's University rests with the Board of Trustees.
4.7
Gift Eligibility
4.7.1 The following gifts5 are deemed eligible for acceptance by Queen's University:
  •  
    • Outright gifts of cash, cheques, or securities
    • Gifts-in-kind
    • Life insurance
    • Annuity contracts
    • Gifts of residual interest
    • Trust agreements
    • Bequests

There are policies and procedures maintained by the Office of Advancement for accepting all types of gifts.
4.8 Gift Limitations

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4.8.1 When conditions placed on a gift offer are judged to be administratively difficult or not in the University's best interest,  the Directors of Development, in consultation with other University officials, may request that the terms of the gift be revised, or recommend to the appropriate individual that the gift be declined.6
4.8.2

The following gift conditions cannot be accepted by the University for scholarships, fellowships, awards, bursaries, or other financial aid funds:

 

4.8.2.1 Conditions which, by explicit designation, require the exclusion of, or discriminate against, a group or class, unless such exclusion or discrimination has the effect of favouring one or more designated groups as provided for in any approved institutional plan or equity scheme.
4.8.2.2 
Stipulations designating a specific recipient by a donor
4.9 Gift Acceptance
4.9.1

When negotiating a gift on behalf of the institution, individuals shall consult with the Department of Development, to ensure due diligence prior to making a decision with respect to a gift which:

4.9.1.1 might expose the University to an uncertain and potentially significant liability
4.9.1.2 is precedent-setting or involves sensitive issues
4.9.1.3 may have come from illegal activities
4.9.1.4 involves a proposal to name (c.f. 4.6)7
4.9.1.5 because of its unusual nature, presents questions as to whether it is within the role and scope of the University.
4.9.2 The University’s solicitation of gifts is informed by and consistent with priorities established by appropriate University processes.
4.9.3 Occasionally, funds sought and contributed for a University purpose are insufficient to make the project viable. If the University is unable to proceed, benefactors will be invited to redirect their contributions to an analogous purpose, and/or to curtail future pledged payments.
4.9.4 Undesignated gifts shall be used for such purposes as the University judges will best advance its mission and academic priorities. Designated gifts shall be used expressly for the purposes for which they are given, which must be consistent with the University’s mission and academic priorities.
4.9.5 Charitable gifts to Queen's University in the form of cash or cheques received by any department in the University, shall be sent via courier, or else presented in person, along with related correspondence and any specific instructions, to the Office of Advancement, Advancement Business office, Information Services, on the day they are received. Cash and cheques are never to be sent through Campus Mail.
4.9.6 On a regular basis, the Office of Advancement shall prepare a summary report of gift activity for the Advancement Committee and the Board of Trustees.
4.9.7 The University Secretariat is responsible for accepting and processing bequests to the University. The Secretariat shall advise the Advancement Business Office of bequests received, and shall fax a copy of the cheque and deposit slip. Upon receipt of this documentation, the Office of Advancement shall issue an official charitable receipt.

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4.10 Gift Receipting
4.10.1 Charitable tax receipts for Queen’s University shall be issued solely by the Office of Advancement, through the Advancement Business Office. This ensures accurate reporting of all charitable gift contributions to Queen's University and its entities, and ensures that donors are recognized for the total of all their charitable gifts.
4.10.2 All eligible gifts will be acknowledged with an official charitable receipt accompanied by correspondence prepared by the Office of Advancement. These documents are deemed to be the official acceptance of the gift and its related terms and conditions, as well as official certification of the donation for income tax purposes.
4.10.3 The University receives many payments that are not considered charitable gifts. Examples include tuition fees paid by students or on behalf of students, contract agreements, and sale of services. An "official charitable receipt" shall not be issued for payments of this kind.

APPENDIX ONE: Related Policies

Queen’s University:  Report on Principles and Priorities.  Approved by Senate January 25, 1996.

Queen’s University: The Control and Use of the Charitable Registration Number (PDF*, 70 KB)

Queen's University’s Naming Policy

Gifting of Securities (PDF*, 32 KB)

1 Departments within the Office of Advancement include Advancement Technology Services, the Advancement Business Office, Alumni Affairs, Development, Marketing and Communications

2 For further information, please consult Queen's policy: Control and Use of the Charitable Registration Number.

3 These include the Crown Foundation at Queen's University at Kingston and the U.S. Foundation for Queen's University at Kingston

4 In the case of named academic appointments (i.e. Chairs, Professorships), or named awards, (i.e. scholarships, prizes), details of the terms of reference, including namings, are approved by the University Senate. If the University Secretary (whose role includes Secretary of the Senate, Secretary of the Board of Trustees, and Secretary of the University) identifies a concern with respect to a proposed naming, the Secretary shall refer the matter to the Board of Trustees for a final decision.

When schedules for naming opportunities and the level of gift contribution required for each have been developed, gifts given at the established level will be accepted, and a proposal to name will be forwarded to the Board of Trustees for approval.

5 For definitions of what constitutes a "gift", please see PART ONE "Glossary of Key Terms".

6 For circumstances under which a gift might be declined, see 4.9.1.1 through 4.9.1.5

7 See Queen's University Naming Policy, item 4.3

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