B. The University of Manitoba Foundation USA Inc.
C. Affiliated/Associated Organizations
L. Replacement of Lost Receipts
M. Lotteries
N. Sponsorships and Research Contracts
A. University of Manitoba
Gifts for which the university issues charitable donation receipts (Receipts) must comply with applicable federal and provincial tax regulations.
Gifts of cash, near cash, cheques, credit card or negotiable securities to which no conditions are attached are routinely accepted and administered by Development & Advancement Services.
Any cash or cheques received by units other than Development & Advancement Services and requiring Receipts must be forwarded to Development & Advancement Services within one week. Development & Advancement Services must approve all other gifts prior to being accepted by the university.
Development & Advancement Services is responsible for:
- Issuing Receipts that are compliant with Canada Revenue Agency requirements;
- Coordinating the distribution of Receipts and related gift acknowledgment correspondence for gifts with an eligible amount of $5.00 or more;
- Acknowledging gifts of cash, cheques or credit card within a reasonable period of time (usually within 48 hours).
For gifts of publicly traded securities the charitable receipt amount will be determined by:
Electronic Transfer - If the donated securities are sold the day they are received into the University of Manitoba’s account at BMO Nesbitt Burns, the fair market value of the gift will reflect the actual gross proceeds to the University. If the donated securities are sold after the day they are received into the University’s account, the fair market value will be determined by reference to the closing market price on the day the securities were received into the account.
Physical Transfer – Once the donor has endorsed the actual share certificates over to the University of Manitoba, the fair market value will be based upon the closing market price on the day that the University of Manitoba received physical possession of the securities.
It is the University’s preference for the donor to make a gift of securities via electronic transfer. It is important to note that transferring shares electronically between two different brokerage firms can sometimes take more than one business day, and during this time price fluctuations can occur. It is the University's policy to sell donated securities as quickly as possible. The University will not hold any security on a speculative basis.
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B. The University of Manitoba Foundation USA Inc.
The university has an economic interest in the University of Manitoba Foundation USA Inc. (“the Foundation”) which is an Illinois Not-For-Profit Corporation incorporated in December 1989. The Foundation’s purpose is exclusively charitable, literary, scientific and educational and its activities include the promotion, encouragement, aid and advancement of higher education, research and training in the Province of Manitoba, in Canada and elsewhere. The Foundation is exempt from USA Federal Income Tax under Section 501(c)(3) of the Internal Revenue Code.
The Board of Directors of the Foundation is an independent board whose members direct and guide the Foundation’s actions. Members on the Board include, among others, certain senior staff of the University of Manitoba. The University of Manitoba, however, is one of many universities eligible to receive aid from the Foundation. The university must make application to the Foundation’s Board of Directors to request funds, which may or may not be granted. The university’s economic interest therefore is beneficial, as gifts and donations which are solicited by the Foundation may be transferred to the University of Manitoba from time to time.
Gifts are sent to the University of Manitoba Foundation USA under the following circumstances:
- Gifts from a person who has no direct connection to the university;
- Gifts from employers through a corporate matching program;
- Gifts from American corporations or companies;
- Gifts from American foundations (private or public); and
- Gifts from trusts.
C. Affiliated/Associated Organizations
The following organizations may issue tax Receipts under their own numbers:
- Alumni Association Inc.
- St. John’s College
- St. Paul’s College
- St. Andrew’s College
- The University of Manitoba Business School Foundation (The Associates Program)
D. Receipt Recipients
The general rule is to issue the Receipt to the actual donor of the gift. In the case of a gift by cheque or credit card, this is the person (or people) whose name(s) appear(s) on the cheque or credit card. In the case of a gift of cash, the university will refer to accompanying documentation to determine to whom to issue the Receipt.
Examples are:
- If a cheque is received from corporations, including holding companies, the Receipt must be made out to the corporate name on the cheque. The Receipt cannot be entered in an individual’s name;
- If a cheque or cash is received from a partnership or a proprietorship that is not incorporated, the owner(s) and the company are one and the same for tax purposes. Receipts may be issued in the individuals’ names;
- If a person purchases more than one dinner ticket and apparently collects from the other people who use the tickets, Receipts may be issued to each attendee, if so requested. If the purchaser is an incorporated company or organization, the Receipt must be made out to the company or organization;
- A person may make a contribution to the university through an honorarium, stipend or other remuneration being paid for services rendered to any organization. If the person chooses to have the stipend transferred directly to the university, the organization, not the person, is entitled to the Receipt. The person must have received the amount into income before being entitled to a personal tax credit.
E. Canadian Cultural Property
The Cultural Property Export and Import Act encourages Canadians to keep significant cultural property in Canada by providing incentives for Canadians who give this type of property to designated institutions and public authorities. At the present time, Art Gallery One One One and the University’s Libraries are designated to receive Canadian Cultural Property. In rare situations, other units may be able to accept such property. The unit must contact Development & Advancement Services for the designation process.
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F. Date of Donation
For Canadian Cultural Property, the date of donation is the date on which the Canadian Cultural Property Export Review Board certifies the property. Property may be transferred to the university by a tentative agreement for the purposes of seeking certification. However, ownership remains with the donor until such time as the certification process is successfully completed. Once successfully completed, and a certificate is prepared, ownership of the property is formally transferred to the university pursuant to terms of the tentative agreement and the Receipt can be issued on that date.
For all gifts, most Receipts are sent within 48 hours of the arrival of the gift, although there are no regulations requiring the issuance of Receipts within a particular time frame. Canada Revenue Agency suggests that they be issued at least by the last day of February following the year during which the gift was made.
All gifts that are received by mail or similar common carrier after December 31 can be considered as given in the prior year, when the gift is postmarked in the prior year.
The “date of issue,” which appears on all university receipts, is the date on which the receipt was prepared.
- Definitions
Trust funds are segregated accounts that may encroach on capital to fulfill the purpose of the fund as defined in the terms of reference. Endowment funds are segregated accounts in which the capital is invested in perpetuity and only the income is available to fulfill the purpose of the fund as defined in the terms of reference.
- Minimum Levels
a. Award Funds/General Funds:
For establishment of a new named trust or endowment account, a minimum contribution of $10,000, not including matching funds, is required.b. Research Funds
Named designated endowment fund: To name a new trust or endowment fund to support research in a specified area, a minimum contribution of $50,000 is required. The income from the fund will be used for the specified area of research within the designated faculty.
Named general endowment fund: To name a new trust or endowment fund to support research, a minimum contribution of $10,000 is required. The income from the fund will be used for the general research purposes of the designated faculty, where it is needed most. - Fund Distributions
All funds that are otherwise distributable from an endowment will normally be reinvested as a permanent addition to the principal until the endowment is funded with the then-required minimum funding level for an endowment, or, is dissolved as provided in ii. below. In the event that the donor is unable to fulfill the pledge by the end of the five years, the endowment may be either dissolved or re-designated as follows:i. If trust or endowment funds are less than the minimum endowment fund level, the endowment may be dissolved and the Dean or Director of the beneficiary unit shall have discretion to designate an existing endowment fund to which to transfer the funds, taking into consideration the donor’s original intent and, if possible, consulting the donor or donor contact.
ii. If trust or endowment funds are in excess of the minimum endowment fund level prescribed for the type of fund originally approved by the university, the endowment may be re-designated, based on the funds held and the donor’s intent. - Amendment or Termination
Once a trust or endowment is created, the terms, purpose, or existence of that fund may be changed if specifically authorized by the terms of the agreement or subsequent agreement with the donor, or applicable laws. In the case of student awards, requests for amendments to the terms or purpose of a trust or endowment or to terminate a fund must be sent to Senate Committee on Awards for coordinated review and approval.
H. Equipment Purchases
Receipts can be issued for contributions to a university account in order to purchase equipment that becomes the property of the university. If the equipment is related to a research contract or grant, different treatment applies. In such cases, contact the Office of Research Services. The procedure for gifts of equipment follows:
- The designated purpose for the equipment should be part of the general activities of the university for which donations would normally be accepted;
- Purchasing Services determines the cost of the equipment to be purchased. The person sends the donation to Development & Advancement Services, indicating the university account to which the amount is to be deposited;
- Development & Advancement Services deposits the gift in the designated capital accounts and issues a Receipt;
- The unit is advised of the gift and can make the purchase, to be paid from the appropriate university account;
- The thank you letter declares that the equipment is the property of the university.
The university will entertain “bargain sale” type arrangements combining gifts with proceeds to acquire equipment. At no time will the proceeds exceed 80% of the total fair market value of the equipment.
I. Fundraising Events
Receipts can be issued for the charitable portion of ticket prices for university-approved fundraising events. The procedure is as follows:
- The difference between the purchase price of a ticket to attend a “dinner, ball, concert or show” and the fair market value of the associated food, entertainment, etc. received is considered to be the eligible amount.
- To calculate the eligible amount, the university considers that two payments have been received: one for the fair market value of admission and the second as a gift to the university. The fair market value is determined by making a comparison to the regular or usual charge for attendance at a similar function or the estimated price that would have been charged. The Receipt is issued and the donor is recognized for the eligible amount only.
When determining the eligible amount of the ticket price for a fundraising event, the following rules apply:
- The value of all door prizes is averaged over the number of attendees to determine if any advantage is present. This amount (if any) is added to:
- The value of any promotional items such as pens, t-shirts, golf balls, etc. given to attendees. If the sum of the door prizes and promotional items is greater than 10% of the ticket price, or $75, then the amount is considered advantage and must be added to the following:
- The retail value of the meal and/or entertainment; This final amount constitutes the advantage used to determine the eligible amount of the ticket price.
- If the advantage can not be ascertained, then no tax receipt can be issued. Furthermore, advantage includes all activities related to the gift. For example; an event features a lottery where you donate $150 and are eligible to win a trip valued at $500. The $500 value of the trip is advantage and must be subtracted off the individual’s $150 ticket price – thus no gift.
- If the event features a lottery, hole-in-one contest, a draw, or some other game of chance that attendees can enter voluntarily during the event, then no advantage is present.
GST is no longer charged on the determined fair market value of the ticket.
If the event features an auction where the retail (or fair market) value is clearly posted, a tax receipt can be issued for the difference between the “posted” value and the amount paid provided the posted amount does not exceed 80% of the amount paid.
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J. Gifts-in-Kind
Receipts may be issued for gifts-in-kind received by the university. In cases of gifts of real estate and tangible or personal property that is not readily valued or negotiable: refer to the applicable Gift Appraisal and Acceptance Policies and Procedures. General procedures for items that are readily valued are:
- For gifts valued at over $1,000, a professional, independent appraisal of the value of the gift is required prior to the issuance of a Receipt;
- Gifts-in-kind must be approved by the Trust and Endowment Officer in Treasury Services before Development & Advancement Services issues a Receipt;
- An internal appraisal is acceptable for gifts-in-kind valued at $1,000 or less, should the university have staff with the expertise to make the valuation;
- The university will not accept any property with a tax shelter number;
- The university reserves the right to refer any gift in kind to its Gift Acceptance Committee;
- In the case of gifts valued in excess of $1,000, donors are responsible for securing a qualified, reputable, independent appraiser to produce a well-documented appraisal to substantiate the Receipt. Donors are encouraged to select the appraiser and pay the fee. The university reserves the right to obtain and rely on a second appraisal, at the university’s expense, for the purpose of issuing a Receipt;
- For gifted securities in a foreign currency, the conversion is done at the university’s bank’s buying price for that currency on the date of the Receipt;
- The university does not normally accept gifts of art that it cannot appropriately steward and display. Such a gift may be accepted on the understanding that it would be sold and the proceeds directed as the donor wishes. Gifts of art require authentication. Appraisal by a member of the Professional Art Dealers Association of Canada (PADAC) or a member of an equivalent international association is the basis upon which Receipts are issued. Acceptance decisions rest with the faculty or unit to which the gift is offered or can be referred to the Gift Acceptance Committee;
- The university and the University of Manitoba Libraries accept gifts of books and manuscripts that enhance its collections. See The Libraries’ Gift Acceptance Policies for specific details.
K. Gifts of Service
Canada Revenue Agency expressly forbids the issuance of receipts for a gift of service. However, a receipt may be issued when an individual, or corporation invoices the unit receiving the service, receives payment for the service, and voluntarily returns some or all of the amount of the payment to the university as a donation.
L. Replacement of Lost Receipts
To replace a lost receipt, the university can re-print the original receipt, or may, in some cases, issue a replacement. If a replacement is produced, the new Receipt must refer to the original Receipt number and indicate that it is a replacement.
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M. Lotteries
In all cases, a payment for a lottery ticket or other chance to win a prize is not a gift for which the university may issue a Receipt.
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N. Sponsorships and Research Contracts
In the case of sponsorships and research grants and contracts, sponsors or funders may receive Receipts to the extent that they receive no direct benefit from the payment, and a non-charitable Receipt to the extent to which they receive a direct benefit from the payment. For sponsorships, GST will be charged and invoices will be sent to sponsors. Non-charitable Receipts will be issued upon payment of the invoice.
In order to determine whether support is a donation or a grant, the following questions will be posed to the donor/research funder:
- Is there an expectation of receipt of a “scientific results” report i.e. data exchange?
- Is there a specific research proposal with a start date and end date for the project or program associated with the funding?
- Were the funds awarded through a competition?
- Does the corporation/organization require an Research & Development receipt as a tax benefit?
If the answer to any of these questions is “yes”, no charitable receipt is issued.
A guiding principle in determining if a charitable donation receipt should be issued is Canada Revenue Agency Interpretation Bulletin 110R3. Normally, charitable donation receipts for gifts of research may be issued to:
- Charitable foundations;
- Professional organizations;
- Individuals who are not the signing authority on the research account;
- Corporations where there is no tangible benefit to the corporation.
Gifts to the University
Definitions
Philanthropy and Tax Credits
Gift Appraisal, Acceptance and Disposition
Issuing of Receipts
Stewardship
Guidelines for Types of Gifts