Gifts in Kind
Non-cash donations are often referred to as gifts in kind. Some of the most common types of gifts in kind include artwork suitable for patient rooms or waiting areas, equipment items such as wheelchairs and walkers, or furnishings such as televisions or DVD players for family rooms.
Other Gifts-in-Kind donations include securities, real estate, and tangible property.
The Foundation works with the Sault Area Hospital to determine if your donation can be accepted and where it will provide the greatest value to our patients. In many cases, a charitable tax receipt can be issued for the fair market value of the item.
Sault Area Hospital Foundation Gift Planning Policy
I. General Policy
II. Issuing New or Amending Policies
III. Designation of Recipient Organization
IV. Responsibility to the Donor
V. Acceptance of Deferred Gifts
VI. Statutory Compliance
VII. Valuation Procedure
VIII. Types of Gifts
SAHF Gift Planning Policies and Procedures
I. General Policy
The Sault Area Hospital Foundation (Herein after "the Foundation") is authorized to encourage donors to make both outright and deferred gifts. The types of deferred gifts to be offered include bequests, gifts of residual interest, gifts of real estate, gifts of shares of privately owned businesses and other business interests, gifts of life insurance policies and proceeds, and such other gift arrangements as the Board of Directors (here after "the Board"), may from time to time approve. All programs, solicitation plans, and activities shall be subject to the oversight of the board or as delegated by the Board to the Gift Planning Committee (see attached Terms of Reference).
II. Issuing New or Amending Policies
The Sault Area Hospital Foundation has set policies and procedures to guide the Gift Planning Program. Most gifts will be covered by specific guidelines. For others, the Foundation will develop policies to address the specific wishes of the donor and form precedents for future similar gifts. All policies will be reviewed annually by the Board.
III. Designation of Recipient Organization
Subject to each gift being qualified or approved as provided herein, all gifts intended for donation to the Hospital' foundation shall be accepted by the: Sault Area Hospital Foundation
In the event of any uncertainty as to the intended recipient foundation, to be either the Sault Ste. Marie General Foundation or Plummer Memorial Public Hospital Foundation, the gift shall be accepted in consultation with the donor or the donor's representative for the benefit of the amalgamated entity - Sault Area Hospital Foundation.
IV. Responsibility to the Donor
While the primary interest of the Foundation is to seek donations to assist the hospital in fulfilling its mandate, the Foundation has an ethical responsibility to the donor. Accordingly, all parties acting on behalf of the Foundation will adhere to the following principles:
a) Conflict of Interest
In all matters involving the donor, the interest and well being of the donor must take priority. In cases of potential conflict or actual conflict of interest, those acting on behalf of either the Foundation or the Hospital must declare the conflict to the intended donor. The donor can be referred to someone with no conflict of interest or the donor can sign a document acknowledging the stated conflict of interest. A conflict of interest is deemed to occur when individuals who present themselves as a representative of the Sault Area Hospital Foundation attempt to sell their own product to the donor. No member of the committee by virtue of that position will use confidential information for his/her personal gain. However, if the individuals present themselves as representatives of an outside firm and part of their financial counseling involved planned gifts for the Hospital, no conflict would exist.
b) Legal and Other Professional Counsel
In matters pertaining to the Gift Planning Program, the advice of a lawyer or other appropriate professional counsel will be sought.
Alternatively, the Foundation's lawyers will offer to assist the donor's legal counsel in drafting the instrument as outlined in 4.1.3.
c) Ethics
All development office staff and other individuals acting on behalf of the Foundation in promoting the Gift Planning Program will conduct themselves in accordance with accepted professional standards of accuracy, truth and integrity.
V. Acceptance of Deferred Gifts
The Major Gifts/Gift Planning Officer is authorized to negotiate deferred gift agreements with prospective donors following guidelines approved by the board.
All gift planning standard agreements of the Foundation shall first be reviewed and approved as to form by the Foundation's legal counsel.
Under normal course of events outright gifts of cash, publicly traded securities, and life insurance do not require approval by the Board. Any restriction on a gift other than designation of funds or unusual circumstances will be referred to the board for acceptance.
The Foundation may refuse any donation if a valid reason for non-acceptance is presented.
VI. Statutory Compliance
In addition to policies in respect of the qualification or approval of any intended gift, the acceptance of such gift shall, at all times, comply with the applicable laws and regulations of Canada and the Province of Ontario as legislated or amended from time to time. Without limiting the generality of the foregoing, the gifts shall comply with:
VII. Valuation Procedure
Depending on the nature or character of an intended gift for which the monetary value is not readily apparent or calculable, the Major Gifts/Gift Planning Officer of the Foundation may obtain, or require the donor to obtain, one or more appraisals from individuals or firms qualified (certified) to give an opinion of the value of such intended gift.
A tax receipt will be issued for the fair market value of the gift. Fair market value is the highest price available in an open and unrestricted market between informed and prudent parties, acting at arm's length and under no compulsion to act, expressed in terms of cash. The fair market value will be determined by the Gift Planning Officer after giving due consideration of all the circumstances including at least one written appraisal if the value is over $25,000.
VIII. Types of Gifts
The following methods of giving are encouraged in the gift planning program at the Sault Area Hospital Foundation:
The following guidelines are established to guide the acceptance of deferred gifts by the Foundation.
1. Outright Gifts
a) Description
An outright gift refers to a contribution of property in which the donor retains no interest and which can be used currently by the Foundation. Securing outright gifts is the Foundation's highest priority, and donors who are able to make outright gifts will be encouraged to do so.
b) Guidelines
i. The Foundation will accept an outright gift, though gifts to establish a named endowment must meet the minimum funding requirements set by the board from time to time.
ii. A donor may complete a gift in a single transaction or make a pledge to be paid over whatever period of time is mutually acceptable to the donor and the Foundation.
iii. A donor may give personal property (furniture, vehicles, art, jewelry and equipment) subject to appraisal, to determine the fair market value. Where the cost of appraisal exceeds 15% of the value of the gift, the excess will be deducted from any receipt issued upon approval of the Foundation.
b) Disclaimer
At no time is the Foundation under an obligation to accept gifts such as securities, gifts of real estate, life insurance, personal property such as furniture, vehicles, art, jewelry etc.)
2. Bequests
a) Description
Bequests have historically been the most important kind of deferred gift, and they have contributed significantly to the building of institutional endowments. The encouragement of bequests will be one of the highest priorities of the Foundation.
b) Guidelines
Sample bequests language for restricted and unrestricted gifts, including endowments, will be made available to donors and their lawyers to ensure that the bequest is properly designated. Donors will also be invited to provide
information about their bequest provision and, if they are willing, to send a copy of that section of their will naming the Foundation.
During the probate of estates containing a bequest to the Foundation, and during the post-death administration of irrevocable trusts containing positive provisions benefiting the Foundation, the director of gift planning (or other officer so designated, in consultation with the Foundation's legal counsel, shall represent the Foundation in all dealings with the lawyer and executor of the estate).
3. Life Insurance
a) Description
There are various methods by which a life insurance policy may be contributed to the Foundation. A donor may:
When the ownership is irrevocably assigned to the Foundation, the donor is entitled to a gift receipt for the net cash surrender value (if any) and for any premiums subsequently paid (if fully paid, the tax receipt would be for the face value of the policy, and if not fully paid, the receipt would be pro-rated).
b) Guidelines
Any of these types of life insurance gifts are acceptable to the Foundation. In the event a policy is contributed on which premiums remain to be paid, the
Foundation will pay the premiums, if deemed in the best interest of the foundation, or the donor makes equivalent contributions for that purpose.
c) Disclaimer
At no time is the Foundation under an obligation to accept gifts such as securities, gifts of real estate, life insurance, personal property such as furniture, vehicles, art, jewelry etc.
4. Gifts of Real Estate
a) Description
Gifts of real estate may be made in various ways: outright, bequest of residual interest in the property, or donation of property with life tenancy (a charitable remainder trust). The following guidelines pertain to gifts of real estate in general. Where real estate is transferred to a charitable remainder trust, additional requirements of the trustee must be met.
b) Guidelines
i. Outright Gifts
i. The Foundation shall review other factors, including zoning restrictions, marketability, current use and cash flow, to ascertain that acceptance of the gift would be in the best interest of the Foundation.
ii. The Foundation shall, if deemed appropriate, conduct an environmental assessment, which may include an environmental audit, and accept the property only if (a) it contains no toxic substances, or (b) they are removed or other remedies taken assuring that the Foundation assumes no liability whatsoever.
d) Disclaimer
At no time is the Foundation under an obligation to accept gifts such as securities, gifts of real estate, life insurance, personal property such as furniture, vehicles, art, jewelry etc.
5. Gifts of Private Company Shares, Limited & Non-Limited Liability, Partnership Interests or Publicly Traded Common & Preferred Shares
a) Description
Gifts of private company shares, limited and non-limited liability partnership interests, or publicly traded common and preferred shares may be accepted by the Foundation.
b) Guidelines
i. Private Company Shares
ii. Limited Liability Partnership Interests
iii. Non-Limited Liability Partnership Interests
iv. Publicly Traded Common or Preferred Shares
c) Valuation of Securities for Receipting Purposes
d) Disclaimer
At no time is the Foundation under an obligation to accept gifts such as securities, gifts of real estate, life insurance, personal property such as furniture, vehicles, art, jewelry etc.)
Other Gifts-in-Kind donations include securities, real estate, and tangible property.
The Foundation works with the Sault Area Hospital to determine if your donation can be accepted and where it will provide the greatest value to our patients. In many cases, a charitable tax receipt can be issued for the fair market value of the item.
Sault Area Hospital Foundation Gift Planning Policy
I. General Policy
II. Issuing New or Amending Policies
III. Designation of Recipient Organization
IV. Responsibility to the Donor
V. Acceptance of Deferred Gifts
VI. Statutory Compliance
VII. Valuation Procedure
VIII. Types of Gifts
1. Outright Gifts
2. Bequests
3. Life Insurance
4. Gifts of Real Estate
5. Gifts of Private Company Shares, Limited & Non-Limited Liability, Partnership Interests or Publicly Traded Common & Preferred Shares
SAHF Gift Planning Policies and Procedures
I. General Policy
The Sault Area Hospital Foundation (Herein after "the Foundation") is authorized to encourage donors to make both outright and deferred gifts. The types of deferred gifts to be offered include bequests, gifts of residual interest, gifts of real estate, gifts of shares of privately owned businesses and other business interests, gifts of life insurance policies and proceeds, and such other gift arrangements as the Board of Directors (here after "the Board"), may from time to time approve. All programs, solicitation plans, and activities shall be subject to the oversight of the board or as delegated by the Board to the Gift Planning Committee (see attached Terms of Reference).
II. Issuing New or Amending Policies
The Sault Area Hospital Foundation has set policies and procedures to guide the Gift Planning Program. Most gifts will be covered by specific guidelines. For others, the Foundation will develop policies to address the specific wishes of the donor and form precedents for future similar gifts. All policies will be reviewed annually by the Board.
III. Designation of Recipient Organization
Subject to each gift being qualified or approved as provided herein, all gifts intended for donation to the Hospital' foundation shall be accepted by the: Sault Area Hospital Foundation
In the event of any uncertainty as to the intended recipient foundation, to be either the Sault Ste. Marie General Foundation or Plummer Memorial Public Hospital Foundation, the gift shall be accepted in consultation with the donor or the donor's representative for the benefit of the amalgamated entity - Sault Area Hospital Foundation.
IV. Responsibility to the Donor
While the primary interest of the Foundation is to seek donations to assist the hospital in fulfilling its mandate, the Foundation has an ethical responsibility to the donor. Accordingly, all parties acting on behalf of the Foundation will adhere to the following principles:
a) Conflict of Interest
In all matters involving the donor, the interest and well being of the donor must take priority. In cases of potential conflict or actual conflict of interest, those acting on behalf of either the Foundation or the Hospital must declare the conflict to the intended donor. The donor can be referred to someone with no conflict of interest or the donor can sign a document acknowledging the stated conflict of interest. A conflict of interest is deemed to occur when individuals who present themselves as a representative of the Sault Area Hospital Foundation attempt to sell their own product to the donor. No member of the committee by virtue of that position will use confidential information for his/her personal gain. However, if the individuals present themselves as representatives of an outside firm and part of their financial counseling involved planned gifts for the Hospital, no conflict would exist.
b) Legal and Other Professional Counsel
In matters pertaining to the Gift Planning Program, the advice of a lawyer or other appropriate professional counsel will be sought.
- As donor's needs and circumstances vary, all donors will be advised to have their deferred gift plans reviewed by their professional advisors.
- As a service to the donor, the Foundation's lawyer may draft the Gift Planning Instrument and the Foundation will accept the responsibility for the fees incurred.
Alternatively, the Foundation's lawyers will offer to assist the donor's legal counsel in drafting the instrument as outlined in 4.1.3.
- In the case of instruments drafted by the donor's lawyer, the Foundation will review all such documents before they are accepted.
c) Ethics
All development office staff and other individuals acting on behalf of the Foundation in promoting the Gift Planning Program will conduct themselves in accordance with accepted professional standards of accuracy, truth and integrity.
V. Acceptance of Deferred Gifts
The Major Gifts/Gift Planning Officer is authorized to negotiate deferred gift agreements with prospective donors following guidelines approved by the board.
All gift planning standard agreements of the Foundation shall first be reviewed and approved as to form by the Foundation's legal counsel.
Under normal course of events outright gifts of cash, publicly traded securities, and life insurance do not require approval by the Board. Any restriction on a gift other than designation of funds or unusual circumstances will be referred to the board for acceptance.
The Foundation may refuse any donation if a valid reason for non-acceptance is presented.
VI. Statutory Compliance
In addition to policies in respect of the qualification or approval of any intended gift, the acceptance of such gift shall, at all times, comply with the applicable laws and regulations of Canada and the Province of Ontario as legislated or amended from time to time. Without limiting the generality of the foregoing, the gifts shall comply with:
- Notice requirements under the Charities Accounting Act
- The "interest in business" provisions of the Charitable Gifts Act
VII. Valuation Procedure
Depending on the nature or character of an intended gift for which the monetary value is not readily apparent or calculable, the Major Gifts/Gift Planning Officer of the Foundation may obtain, or require the donor to obtain, one or more appraisals from individuals or firms qualified (certified) to give an opinion of the value of such intended gift.
A tax receipt will be issued for the fair market value of the gift. Fair market value is the highest price available in an open and unrestricted market between informed and prudent parties, acting at arm's length and under no compulsion to act, expressed in terms of cash. The fair market value will be determined by the Gift Planning Officer after giving due consideration of all the circumstances including at least one written appraisal if the value is over $25,000.
VIII. Types of Gifts
The following methods of giving are encouraged in the gift planning program at the Sault Area Hospital Foundation:
- Outright gifts
- Bequest by will
- Gifts through life insurance
- Gifts of real estate and securities
- Gifts of shares in privately owned companies and other business interests
The following guidelines are established to guide the acceptance of deferred gifts by the Foundation.
1. Outright Gifts
a) Description
An outright gift refers to a contribution of property in which the donor retains no interest and which can be used currently by the Foundation. Securing outright gifts is the Foundation's highest priority, and donors who are able to make outright gifts will be encouraged to do so.
b) Guidelines
i. The Foundation will accept an outright gift, though gifts to establish a named endowment must meet the minimum funding requirements set by the board from time to time.
ii. A donor may complete a gift in a single transaction or make a pledge to be paid over whatever period of time is mutually acceptable to the donor and the Foundation.
iii. A donor may give personal property (furniture, vehicles, art, jewelry and equipment) subject to appraisal, to determine the fair market value. Where the cost of appraisal exceeds 15% of the value of the gift, the excess will be deducted from any receipt issued upon approval of the Foundation.
b) Disclaimer
At no time is the Foundation under an obligation to accept gifts such as securities, gifts of real estate, life insurance, personal property such as furniture, vehicles, art, jewelry etc.)
2. Bequests
a) Description
Bequests have historically been the most important kind of deferred gift, and they have contributed significantly to the building of institutional endowments. The encouragement of bequests will be one of the highest priorities of the Foundation.
b) Guidelines
Sample bequests language for restricted and unrestricted gifts, including endowments, will be made available to donors and their lawyers to ensure that the bequest is properly designated. Donors will also be invited to provide
information about their bequest provision and, if they are willing, to send a copy of that section of their will naming the Foundation.
During the probate of estates containing a bequest to the Foundation, and during the post-death administration of irrevocable trusts containing positive provisions benefiting the Foundation, the director of gift planning (or other officer so designated, in consultation with the Foundation's legal counsel, shall represent the Foundation in all dealings with the lawyer and executor of the estate).
3. Life Insurance
a) Description
There are various methods by which a life insurance policy may be contributed to the Foundation. A donor may:
- Assign irrevocably a paid-up policy to the Foundation;
- Assign irrevocably a life insurance policy on which premiums remain to be paid; or
- Name the Foundation as a primary or successor beneficiary of the proceeds.
When the ownership is irrevocably assigned to the Foundation, the donor is entitled to a gift receipt for the net cash surrender value (if any) and for any premiums subsequently paid (if fully paid, the tax receipt would be for the face value of the policy, and if not fully paid, the receipt would be pro-rated).
b) Guidelines
Any of these types of life insurance gifts are acceptable to the Foundation. In the event a policy is contributed on which premiums remain to be paid, the
Foundation will pay the premiums, if deemed in the best interest of the foundation, or the donor makes equivalent contributions for that purpose.
c) Disclaimer
At no time is the Foundation under an obligation to accept gifts such as securities, gifts of real estate, life insurance, personal property such as furniture, vehicles, art, jewelry etc.
4. Gifts of Real Estate
a) Description
Gifts of real estate may be made in various ways: outright, bequest of residual interest in the property, or donation of property with life tenancy (a charitable remainder trust). The following guidelines pertain to gifts of real estate in general. Where real estate is transferred to a charitable remainder trust, additional requirements of the trustee must be met.
b) Guidelines
i. Outright Gifts
- The donor shall secure a qualified appraisal of the property and a tax receipt will be issued for the appraised value.
- However, the Foundation reserves the right to secure its own appraisal and issue a gift receipt based on it.
- The tax receipt will be issued on receipt of the gift for the appraised value (or present value of the residual interest computed on the appraised value in the case of residual interest gifts).
- A tax receipt will be issued for the appraised value less the present value of the life tenancy.
i. The Foundation shall review other factors, including zoning restrictions, marketability, current use and cash flow, to ascertain that acceptance of the gift would be in the best interest of the Foundation.
ii. The Foundation shall, if deemed appropriate, conduct an environmental assessment, which may include an environmental audit, and accept the property only if (a) it contains no toxic substances, or (b) they are removed or other remedies taken assuring that the Foundation assumes no liability whatsoever.
d) Disclaimer
At no time is the Foundation under an obligation to accept gifts such as securities, gifts of real estate, life insurance, personal property such as furniture, vehicles, art, jewelry etc.
5. Gifts of Private Company Shares, Limited & Non-Limited Liability, Partnership Interests or Publicly Traded Common & Preferred Shares
a) Description
Gifts of private company shares, limited and non-limited liability partnership interests, or publicly traded common and preferred shares may be accepted by the Foundation.
b) Guidelines
i. Private Company Shares
- Private company shares may be accepted, notwithstanding there may be outstanding or possible future calls for capital.
- Private company shares must have sufficient liquidity attached thereto to allow the Foundation to dispose of such shares, should it so desire, without significant loss from the original receipted value of such shares.
ii. Limited Liability Partnership Interests
- Limited liability partnership interests must be valued net of potential or outstanding capital calls or other liability that may attach to the Foundation once it has taken ownership of such interests.
iii. Non-Limited Liability Partnership Interests
- Non-limited liability partnership interests, which by their nature expose each partner to liability for all of the partnership's present and/or future debts, shall not be considered acceptable gifts to the Foundation.
iv. Publicly Traded Common or Preferred Shares
- All publicly traded common or preferred shared may be accepted as gifts to the Foundation, except shares that have unreasonable terms for disposition.
c) Valuation of Securities for Receipting Purposes
- Securities will be valued by the most appropriate method
Private securities must be valued by a company or individual recognized as competent in the area of valuations.
Publicly traded securities will be valued based on open market values.
- Notwithstanding the above,
No securities shall be accepted as gifts unless the aggregate market value of the gift is at least $100.
Gifts of securities or shares will be receipted at the fair market value on the day received by the Foundation and recognition given at the corresponding level. These gifts will be liquidated at the earliest possible time when ownership is transferred to the Foundation (see SAH Foundation Policy 1-100)
d) Disclaimer
At no time is the Foundation under an obligation to accept gifts such as securities, gifts of real estate, life insurance, personal property such as furniture, vehicles, art, jewelry etc.)