4000-1-4 Gift Acceptance
Responsible Executive Senior Vice-President, Strategy & Corporate Services
Policy Sponsor Director, Finance
Issue Date March 30, 1995
Supersedes Date March 30, 1995
Replaces Formerly Titled Official Tax Receipt Guidelines for Non-Cash Donations
Last Review December 15, 2022
Last Revision December 15, 2021
Upon request, the college will provide a copy of this policy in an alternate format.
Gifts are first referred to the Lambton College Foundation, if applicable, however donations made directly to Lambton College will adhere to the following:
- Lambton College accepts gifts in support of its academic, research, and strategic priorities that compy with Canada Revenue Agency (CRA) policies related to charitable giving.
- Donors may direct their gifts to the greatest area of need, for example, campaign, specific capital projects, research or academic programs.
- If no specific designation is made by the donor, Lambton College shall allocate the gift to the greatest area of need.
- Lambton College will investigate each gift to determine if ti is a donation or a contribution. A charitable tax receipt will be issued for donations over $20. No charitable tax receipts will be issued for contributions.
- A gift involving a naming opportunity requires the development of a gift agreement.
- Lambton College's acceptance of gifts-in-kind will adhere to guidelines set by the CRA.
- Gifts-in-kind must be accompanied by an independent appraisal that establishes the fair market value of the gift, an invoice, or any other documentation that adequately establishes the purchase price or fair market value of the gift.
- It is the donor's responsibility to establish the fair market value of the gift and for any costs incurred to do so.
- Lambton College will issue a charitable tax receipt for the fair market value of the gift based on an appraisal, invoice, or other appropriate documentation.
- If there are significant problems in obtaining the information from point 9, the details should be discussed with the Director, Finance prior to accepting the donation if a tax receipt is required.
- Gift-in-kind donations require a Gift-in-Kind Form (see Appendix A) to be completed and signed prior to the acceptance of the donation.
- Gift of a service provided to Lambton College, in accordance with Canada Revenue Agency, is ineligible for a charitable tax receipt and is not normally recorded as a transaction.
Gift of Art and Other Cultural Property
- Lambton College will review residual gifts of art and other cultural property (referred to as "art"). Conditions attached to their acceptance are as follows:
- The art reflects the mission, vision, and values of Lambton College.
- An independent appraisal is conducted at the donor's expense to determine the value of the art.
- Lambton College administration approved the location for the art and arranges the security and maintenance for it.
- Prior to acceptance of the art, the Director, Facilities and Director, Finance will review the requirement of the gift agreement or gift deed.
- Lambton College may refuse a gift for various reasons, including but not limited to the following:
- Gift is inconsistent with the mission, vision, and values or goals of Lambton College.
- Gift constitutes a non-gift as per CRA guidelines.
- Fair market value of the gift cannot be determined.
- Gift will result in unwarranted or unmanageable costs.
- Gift requires physical and operating resources beyond Lambton College's capacity.
- Accepting gift will result in physical or environmental hazards.
- Gift or term of the gift is illegal.
- Due to the terms of the gift, Lambton College will be unable to honour those terms.
- A contribution or donation.
- A transfer of property that does not meet the definition of a donation. A contribution is often a business expense for the donor, typically arising from a sponsorship opportunity or proceeds of a sale, for which a business receipt, not a charitable receipt, would be administered.
- A voluntary transfer of money or property involving no benefit to the donor except for donor recognition for the gift (e.g. signage, plaque, naming opportunities.) The donor is entitled to a charitable donation receipt for income tax purposes.
- A contribution of case of case equivalents (e.g. sports uniforms) in return for promotion of the contributor by the College. A sponsorship is not entitled to a charitable tax receipt for income tax purposes.
- Gift Agreement
- A contract between the donor and the College that specifies the terms and conditions of the gift.
- Gift Deed
- A legal document used to formally give a sum of money or transfer ownership to another organization. The donor does so without conditions and with no expectation of future compensation
- A gift of non-cash item(s) (e.g. machinery, equipment, cars.)
- Gift of Cash
- A gift of cash or cash equivalent (e.g. investment securities, other short-term assets.)
For questions or concerns regarding this policy, please contact the Policy Sponsor by phoning our main line 519-542-7751.