Charitable Giving Policies and Procedural Guidelines
(September 2002)

1 Approval of Fundraising Activities

1.1 Policy

Decisions regarding the setting of fundraising priorities are the responsibility of the President and Executive Committee. All gift solicitations are to be coordinated by the Executive Director, Development and External Relations and donations channeled through the Development and Alumni Relations office. No fundraising should occur without this approval.

Gifts made to the NSAC are always subject to the approval to the President and Executive and must support the aims, objectives and priorities of the institution. The NSAC retains the right to refuse a gift or donation that will harm the public image of the institution or expose it to undue financial hardship or does not meet the program priorities as set out by the President and Executive Committee. The Nova Scotia Agricultural College Foundation will be the vehicle of choice for deposit of proceeds of fundraising efforts.

1.2 Rationale

It is important for the image of NSAC to have a coordinated approach of its fundraising efforts so that all donors are treated in a consistent manner, proper receipts issued where applicable and acknowledgments made in a timely fashion. This donor cultivation process, over time, will mean increasing donation levels in a time when there is increasing competition for donors.

1.3 Guidelines for Implementation

There are many individuals on campus who are skilled in raising funds, acquiring capital investment and in the best position to actively solicit funds for NSAC. The Development and Alumni Relations Office has the responsibility to coordinate these efforts. To do that the following guidelines have been adopted:

• The Executive Director, Development and External Relations will be informed of potential fundraising efforts before they begin. This includes solicitation for all gifts and donations over $1000 in value but may include lower amounts when receipts are expected.
• Proposals for research projects that have the potential to require private matching funds go through the Research office which will inform the Development office. Fundraising needs will be discussed before the proposal is submitted to see if there are other potential donors.
• All donations made to NSAC will be directed to the Development and Alumni Relations Office for processing, official receipt generation and acknowledgment. Options for acknowledgment letters and calls are available by discussion with the Development office.

2 Issuance of Official Receipts

2.1 Policy

Charitable receipts will normally be dated as of the day the gift is received by the Development Office. Cheques received in January qualify for a receipt for income tax purposes dated December of the year before if:

• the postmark on the outer envelope is December 31st of the prior year or earlier, and
• the cheque is dated December 31st of the prior year or earlier.

2.2 Rationale

NSAC has been issued authority under the Universities Foundation Act which permits it to act as a not-for-profit charitable organization subject to the rules of the Income Tax Act. The ability to receive gifts and issue receipts is governed by the Canada Revenue Agency, federal and provincial statutes, and NSAC policy. A gift, for purposes of the Income Tax Act, is a voluntary transfer of property without valuable consideration. Generally a gift is made if all three of the conditions listed below are satisfied:

1. some property-usually cash-is transferred by a donor to a registered charity;
2. the transfer is voluntary; and
3. the transfer is made without expectation of return. No benefit of any kind may be provided to the donor or to anyone designated by the donor, except where the benefit is of nominal value.

For the purpose above, where a charity offers an item, privilege or other benefit in return for a donation, the benefit is considered to have a nominal value where its fair market value does not exceed the lesser of

• $50.00, or
• 10% of the amount of the gift.

2.3 Guidelines for Implementation

When a gift is received by NSAC, it will be the responsibility of the Development Office to ensure that the gift is acceptable to NSAC (that it is in support of NSAC aims, objectives, or collection policies) and that the donation qualifies as a "charitable gift".

If the Development Office, following internal consultation, is uncertain as to whether a donation qualifies as a charitable gift, a ruling will be sought in the following order: from the Foundation's auditors; from NSAC's legal counsel; and Canada Revenue Agency. This ruling will be adhered to by the Development Office when issuing the official receipt.

Canada Revenue Agency Taxation requires that receipt for income tax purposes be made out in the following manner:

• If the individual who signed the cheque states in writing that the contribution was made by another party and that the cheque-signer is only forwarding funds to NSAC, the receipt is issued to the specified donor
• If the cheque is drawn on a corporate/business/organization account, the receipt for income tax purposes must be issued to the corporation/business/organization, not to the person who signed the cheque.

If an individual makes a donation via a corporate cheque when the donation was actually from a personal account held by the company, the individual has two options available:

• The individual can claim the donation for his/her personal income tax purposes, sending to Canada Revenue Agency Taxation copies of the documentation to prove that the donation was debited from his personal account. In this case, the individual would be subject to a ruling from Canada Revenue Agency Taxation as to whether or not they would accept the donation as a personal tax credit.
• The corporation can claim the donation on their own behalf, and then issue the individual a T4A slip, which the individual can use as a claim to offset his/her personal income.
• If a corporation/foundation/association acts as a collection agent for NSAC thereby gathering donations for a specific purpose, they will supply NSAC with a complete list of names, addresses and individual donation amounts. NSAC will in this case issue tax receipts to each donor.

2.4 What Receipts Can Not be Issued for

According to Canada Revenue Agency Information Circulars 80-10R and IT-110R3 receipts can not be issued for:

• Payments for membership that convey the right to attend events; receive literature, receive services or be eligible for special entitlements of value (the right to vote at meetings and to receive financial statements and reports on the activities of the charity is not considered to be a material advantage);
• Tuition fees (except as permitted by Information Circular 75-23) or other payments for which any right, privilege, benefit or advantage may accrue to the donor such as nursery schools or exercise clubs;
• Contributions made to offset a charity's cost of providing services (eg. food and lodging at a seminar conducted by the charity);
• A payment for lottery tickets or a donation that includes a chance to win a prize;
• Amounts received by loose collection, i.e., where a particular donor cannot be identified as having made a particular donation;
• Donations where the donor directs that a certain family or person become the beneficiary;
• Donations of services where the donor requests that, instead of payment for his services, they be supplied with a donation receipt to the value of services rendered (it should be noted that it is acceptable for a person who has been paid for services rendered to then make a donation for which a receipt can be issued);
• A donation of merchandise that is stock in trade for the donor or is otherwise an expense of business except to the extent provided by Interpretation Bulletin IT-297R;
• Donations of old clothes, furniture, home baking, hobby crafts, etc. An exception may be made for articles of unusually high value, as explained in Interpretation Bulletin IT-297R and Information pamphlet Gifts-in-Kind;
• Amounts paid for admission to concerts, dinners and similar fundraising functions, except to the extent permitted by Interpretation Bulletin IT-110R
• Any portion of the purchase price of a lottery ticket, despite the fact that the lottery proceeds accrue to one or more charities.

3 Confidentiality of Information Policy

All information pertaining to donors and donations received by NSAC is considered confidential and is subject to the Freedom of Information and Protection of Privacy (FOIPOP) legislation of the province of Nova Scotia. The Executive or Development Office staff may have access to information on a "need-to-know" basis. The Executive Director, Development and External Relations may approve, in writing of the release of certain donor information to those where the "need-to-know" has been established having regard to the requirements of FOIPOP and the need to protect donor interest.

Information on bequests received by NSAC is also held by the Development Office. The Executive Director of Development and External Relations may approve the release of bequest information on the same basis as above.

3.1 Rationale

Charitable giving is normally a personal and sensitive issue. To ensure the privacy of donor information it is necessary to control access to the donor and donation information.

3.2 Guidelines for Implementation

The Development Office maintains records on all donors and donations received by NSAC.

A donor may request that his/her gift and/or all information pertaining to that gift remain anonymous.

Summary information may be provided on total donations received for special projects or funds. Requests for such information should be directed to the Executive Director of Development and External Relations.

The Development Office may recognize donors to NSAC by publishing their names in special reports, unless otherwise declined by the donor or NSAC.

4 Receipt of Monetary Donations Policy

Gifts of Cash: "Cash" may include bank notes, cheques, money orders, currency or other legal tender. Cash donations which are received by NSAC and which require an official receipt may be deposited only by the Development Office.

Gifts of currency should be accompanied by correspondence signed by the donor to indicate:

• the donor's name,
• the donor's address,
• the amount of the contribution, and
• any purpose for which the gift if made.

4.1 Rationale

The Development Office has been designated as the only outlet for official donation receipts and therefore must receive and deposit all gifts to maintain cash and gift control.

Obtaining relevant correspondence with gifts of currency will ensure that the tax receipt is correct and issued to the appropriate party, avoiding the situation whereby the donor claims (after the fact) that the tax receipt should have been made out to some other donor (eg. the tax receipt was made out to a corporation, but the donor claims it was a personal donation).

4.2 Guidelines for Implementation

The Development Office deposits cash, prepares official receipts and acknowledgment letters, and records gifts. Receipts may be issued at any time after the gift is received. However, the receipt must be issued by February 28th of the following year, in compliance with Canada Revenue Agency's regulations.

The receipt must state that it is an official donation receipt for income tax purposes and include the following information:

• "NSAC" and NSAC's address;
• the serial number of the receipt;
• if it is a cash donation, the date the donation was received;
• if the donation is a gift of property other than cash the day on which the donation was received,
• a brief description of the property;
• the day on which the receipt was issued (if that day differs from the date on which the donation was received);
• the name and address of the donor, including, in the case of an individual, the first name and initial;
• the amount of a cash donation, or if the donation is a gift of property, the fair market value of the property at the time the gift was transferred; and
• the signature of a responsible individual who has been authorized by NSAC to acknowledge donations.

In recording the gift, the following information is noted:

• Campaign: Whether the gift was given as part of NSAC's annual fund raising program or a special campaign.
• Designation: Gifts may be undesignated, broadly designated or specifically designated.
• Undesignated: Donations for which the donor has indicated the gift is unrestricted, or for NSAC's greatest needs, or where the donor has not indicated any designation.
• Broadly Designated: Donations for which the donor has indicated a general area to which the gift is to be designated, such as a department, library or general research.
• Specifically Designated: Donations for which the donor has indicated a specific purpose or designation, such as a particular research project, departmental equipment purchase, memorial fund, specific scholarship fund or special project.

Should the gift be broadly or specifically designated, the Development Office notifies the appropriate Department Head of the receipt of the gift. The Development Office records the Financial Services account to which the gift will eventually be directed. If there is not an appropriate Financial Services account, the Development Office ensures that the Head who will be responsible for the funds sets up an appropriate Business Office account and notifies the Development Office of the account number as soon as possible. The Development Office ensures that the allocation to which the gift is recorded is directly linked to the appropriate Financial Services account.

5 Release of Monetary Donations

NSAC recognizes both the need to make private donations available to support the work of the Departments and support operations and the fact that there is a cost in raising private funding. Unless the Development Office receives written correspondence from the donor or faculty contact stating that the project/fund has been or will be incurring immediate expenditures, donations are assumed to be broadly, rather than specifically designated. Gifts are released from the accounts, depending on whether the gift was for the Annual Fund or a Capital Campaign, as follows:

5.1 Annual Fund

• Undesignated: Gifts which are not designated for any broad or specific purpose are accumulated during the year for allocation by the Executive Committee for expenditure in the next fiscal year. Any interest earned on such funds is first used to offset the cost of fundraising.
• Broadly Designated: Donations with broad designations are accumulated during the year for expenditure in the next fiscal year. VP's or others responsible for broadly designated areas (departments, library, general research, etc.) receive, by May, a report on funds available, and may request funds to be transferred by submitting a memo to the Development Office indicating how the funds will be used. Any interest earned on such funds is first used to offset the cost of fundraising. Funds may be released with the approval of the VP Administration.
• Specifically Designated: Donations directed to approved memorial funds, scholarships, bursaries or other projects for which a trust fund has been created are transferred on an annual basis by Financial Services. Designated reports produced by the Development Office indicate the account to which the funds should be transferred. Funds may be released with the approval of the VP Administration.
• Research Projects/Projects with Immediate Expenditures: Donations designated to research projects and/or projects where there are immediate expenditures set out in the proposal document are transferred by the Development Office on receipt of a memo requesting the transfer and indicating how the funds will be used. The signing authority is responsible for the proper administration of transferred funds. Funds may be released by the approval of the VP Administration.

5.2 Capital Campaigns

• Undesignated: Gifts which are not designated for any broad or specific purpose are accumulated during the fiscal year for allocation by the Executive committee for expenditure on a slipped-year basis. For example, any donations between April 1, 2001 and April 1, 2002 may be released April 1, 2003. Any interest earned on such funds is first used to offset the cost of fundraising. Funds may be released with the approval of the VP Administration.
• Broadly Designated: Donations with broad designations are accumulated during the fiscal year for expenditure on a slipped-year basis (see above example). VP's or others responsible for broadly designated areas (departments, library, general research, etc.) receive by April of the following year, a report on funds available, and may request funds to be transferred by submitting a memo to the Development Office indicating how the funds will be used. Any interest earned on such funds is first used to offset the cost of fundraising. Funds may be released with the approval of the VP Administration.
• Specifically Designated: Donations directed to approved memorial funds, scholarships, bursaries or other projects for which a fund has been created are transferred on an annual basis by Financial Services. Designated reports produced by the Development Office for Financial Services indicate the fund account to which the funds should be transferred. Funds may be released with the approval of the VP Administration.
• Research Projects/Projects with Immediate Expenditures: Donations designated to research projects and/or projects where there are immediate expenditures set out in the proposal document are transferred by the Development Office on receipt of a memo requesting the transfer and indicating how the funds will be used. The signing authority is responsible for the proper administration of transferred funds. Funds may be released with the approval of the VP Administration.

6 Gifts of Securities Policy

NSAC will accept securities as charitable donations if such securities are consistent with NSAC's investment aims. The value of the official receipt will be determined by the fair market value of the security on the date the security is transferred to NSAC.

6.1 Guidelines for Implementation

A gift of this type is not considered complete until the securities are fully assigned and held by NSAC. For marketable securities such as stocks and bonds, the value of the receipt is determined by using the market value of the security at the close of business on the day the security is received by NSAC's custodians. For non-marketable securities, the value of the official receipt will be determined by the parties, based on an external appraisal.

7 Gifts of Property Policy (Real Estate, Equipment, Art, Documents etc.)

NSAC will accept gifts of property as charitable donations if such property is consistent with NSAC's investment or collection aims. The value of the official receipt will be determined according to Canada Revenue Agency Guidelines.

7.1 Rationale

Gifts of property can have great income value. Before a gift can be accepted, however, its merit and value must be accurately determined according to guidelines provided by Canada Revenue Agency.

7.2 Guidelines for Implementation

• Gifts of property are commonly referred to as "gifts-in-kind". Before a gift of property is accepted by NSAC, its merit must be determined.
• Gifts of art will be approved by the President
• Gifts of books, manuscripts, documents, etc. will be approved by NSAC Chief Librarian.
• Other gifts of property must be approved by the Vice-President Administration and/or Vice-President Academic in consultation with the appropriate expert faculty or staff member.

Before the Development Office issues a tax receipt for a gift-in-kind, the Office requires a copy of the following:

For new goods received:

• an itemized purchase order from the area receiving the donated goods; or
• an invoice from the company donating the goods indicating that the invoice is not to be paid; and
• a signed packing slip showing that NSAC has taken receipt of the goods.

For used goods received:

• an independent appraisal from reputable appraiser of the item being donated is needed or, if the gift is $1,000 or less in value, appraisal from a qualified NSAC staff member is acceptable;
• proof of receipt of the goods;
• The appraiser should not be associated with either the donor or NSAC;
• Dealers, appraisers and other individuals knowledgeable about the market value of the object being donated may give a written expert evaluation;
• If finding an independent appraiser is difficult, or involves unwarranted expense, the Canada Revenue Agency will consider an appraisal done by qualified NSAC staff members, even though the value might be more than $1,000;
• The appraisal must be an estimate of the fair market value of the object as of the date of the donation. The receipt must represent the true value of the donation at the time it is donated.

Although the term "fair market value" is not defined in the Income Tax Act, the generally accepted meaning is the price the property would bring in an open market transaction between a willing buyer and a willing seller, acting independently of each other, and each having full knowledge of the facts. An arm's length sale and purchase of the property, at or near the effective date of valuation, is usually considered the best evidence of value at the time, and will normally be used by the Canada Revenue Agency as the value of the donation for purposes of the receipt for income tax purposes.

The date of donation is the date that legal ownership is transferred from the donor to NSAC. This date may not be the date of physical delivery. If, for example, an object was on loan to NSAC before the date of donation, the dates would differ.

8 Gifts of Canadian Cultural Property

The NSAC may receive gifts of Canadian Cultural property subject to the federal rules surrounding sch gifts.

A gift of cultural property must be certified by the Canadian Cultural Property Export Review Board as meeting the criteria set out in paragraphs 29(3)(b) and (c) of the Cultural Property Export and Import Act. The beneficiaries of such gifts must be institutions or public authorities in Canada which are designated under that Act. For further observations on gifts of cultural property, see the current version of IT-407, Dispositions of Cultural Property to Designated Canadian Institutions.

9 Gifts of Life Insurance Policy

When an individual has taken out a life insurance policy (either "whole life" or "term life") and later makes an absolute assignment of the death benefits of the policy to NSAC, this is considered to be a charitable donation, as long as rights, privileges, benefits or advantages do not accrue to the donor as a result of the gift (excluding, of course, any income tax relief as a result of the charitable donation). The amount of the tax receipt depends on whether the policy is paid up and if the donor will continue to make premium payments.

If the policy is paid up, the amount of the charitable donation is equal to the value of the policy (i.e. the amount by which the cash surrender value of the policy at the time of the absolute assignment exceeds any policy loan outstanding) and any accumulated dividends and interest thereon which are also assigned at that time. If the policy does not have any value, then a charitable donation receipt is not issued when the policy is transferred. However, subsequent premium payments will be creditable for income tax purposes.

Alternatively, NSAC may issue the receipt when the benefits are realized; in this case, the receipt is sent to the donor's estate. Upon the donor's death, the full proceeds are paid at once, directly to NSAC without delay of probate, and without reduction in amount due to taxes, legal fees or administration charges. There is not a fluctuation in the value of the proceeds, as there could be if the gift were dependent on the value of stocks, bonds, real estate or other kinds of property. Life insurance is separate from the estate and payment is guaranteed by contract. A gift of life insurance cannot be contested, as it is separate from the donor's estate and is paid directly to NSAC.

When a life insurance policy is absolutely assigned to NSAC, any consents that are required by provincial regulations to be signed to change a beneficiary must be signed before the transfer represents a valid charitable donation.

If the individual donates an amount to NSAC to enable NSAC to pay each premium of a life insurance policy, the charitable donation is equal to each amount given by the individual. If each premium on the policy is paid directly to the insurance company at the request of, or with the concurrence of, NSAC, there is constructive payment of a donation to NSAC and therefore a charitable donation. The increase in cash surrender value of the policy is not relevant in determining the amount of any charitable donation. Furthermore, a donor can make a lump sum cash contribution to NSAC and specify that it be used to pay all premiums on a life insurance policy; this lump sum contribution is still a charitable donation.

9.1 Options

If the policy is paid up, NSAC can borrow on the policy at its designated interest rate (if the policy has an interest rate designated), which would provide immediate benefit. In the event the donor decides to discontinue donating the annual premiums, NSAC may cash in the policy or continue to pay the premiums out of its own funds.

Provided that either the trust stipulates or the donor directs that the gift be held for at least 10 years, the value of a life insurance policy, and the proceeds therefrom, whether on voluntary disposition or upon the death of the life insured, are exempt from disbursement requirements.

9.2 Procedures for Individuals Making Gifts of Life Insurance

To make a gift through the purchase of a new insurance policy, the donor applies for a policy on his/her life and, on issue, transfers the ownership to NSAC. The premium payments can be made on a monthly or annual basis, directly to the insurance company at the request of, or with the concurrence of NSAC, or a lump sum can be set up to repay future payments. The donor includes a letter of instructions to NSAC, with the policy, that may indicate specific distribution of the proceeds. A premium receipt, which the donor forwards to NSAC, is issued by the insurance company. NSAC then issues its own charitable receipt.

9.3 Guidelines for Maintenance

It is important that the Development Office have on file the name of the donor's Insurance Company and Agent so that reminders can be sent about the reporting of premiums paid. Premium payments may qualify donors for appropriate recognition

10 Bequests Policy

Bequests made to NSAC may qualify as charitable gifts if the terms and conditions of the bequest are acceptable under NSAC's aims and objectives. Official receipts will be issued to the estate of the deceased.

10.1 Guidelines for Implementation

Communications (letter and/or copy of Will) are received from the executors, trustees or lawyers by the Development Office.

A copy of the Will is obtained by or forwarded to Development Office. The Will is examined and a recommendation is prepared for Executive Committee if the direction in the Will is not specific. If the directions are specific, the relevant people are informed if they have not already been informed by the Development Office. Funds and legal documents are received and processed. Funds are deposited to the Nova Scotia Agricultural College Foundation holding account.

11 Gifts of Annuities Policy

Donors may make irrevocable gifts to NSAC in exchange for immediate guaranteed payments to the donor for life at a specified rate depending on life expectancy. Such arrangements are considered to be annuity contracts and the annuity payments are included in computing the annuitant's income. The capital element of the annuity payments is considered to be tax free.

Because of a charitable interest in NSAC, a donor may pay more for the annuity than the total amount expected to be received as annuity payments. In such cases, the excess of the purchase price over the amount so expected to be returned is a gift and the individual is entitled to credit the amount of the gift. No portion of any annuity payment is taxable in the hands of the individual in these circumstances.

Conversely, if the donor's annuity payments are expected to equal or exceed the value of the initial gift, there has not been a charitable donation, and a receipt for income tax purposes should not be issued.

Any excess amount of money after the annuity has been purchased is recorded on the donor's record. However, the donor does not receive a tax receipt for this amount.

12 Memorial Funds Policy

12.1 Guidelines for Implementation

Memorial Funds are most commonly set up in honour of a faculty or staff member, an alumnus(a) or a prominent individual. It is imperative that the Development Office be made aware immediately of any plans for a Fund so that gifts to the Fund can be tracked separately, appropriate family members or colleagues can be informed of the progress of the Fund, and letters of thanks can be sent along with receipts. It is also important for the Development Office to be aware at the outset, the plans for the Fund (a scholarship, bursary, capital project, etc.) so that the appropriate offices can be notified of the potential gift(s) and can begin setting appropriate terms and conditions.

13 Use of The Nova Scotia Agricultural College Foundation's Tax Status for Fundraising Policy

The Executive Director, Development and External Relations may approve the use of the Nova Scotia Agricultural College Foundation's Tax Status by an NSAC related organization, providing:

• The request is made with the knowledge and support of the Executive of NSAC;
• The activity will not impact negatively on public perception of NSAC or on existing Development efforts;
• The organization running the event or lottery agrees to maintain proper accounting records and agrees to be accountable to the Executive of NSAC;
• The benefits of the event or lottery are gained by NSAC and are consistent with NSAC's goals and purpose.

13.1 Rationale

It may be appropriate in some circumstances for NSAC related organizations to engage in fundraising activities to benefit their groups or the broader NSAC community. Such groups must be accountable to an NSAC Executive member, Department Head or budget subject manager and must provide proper accounting for the activity. NSAC related organizations may include student union, associations, residences, varsity sports teams, recognized academic clubs and recognized faculty or staff organizations as well as community organizations, research institutes and centres that are formed to help NSAC meet its objectives.

13.2 Guidelines for Implementation

An NSAC related group or organization seeking to use the Nova Scotia Agricultural College Foundation tax status to apply for a lottery or gaming license must:

• Submit a proposal for approval to the Executive Director, Development and External Relations or Vice-President. The proposal will include a description of the activity, the project or program to receive the proceeds.
• The proposal must be received allowing sufficient time for licenses approval
• For control purposes, the organization running the event or lottery must agree to deposit all proceeds and charge all expenses through NSAC's financial accounting system.
• The organization must make a final report within 3 months following the event or lottery to Executive Director, Development and External Relations.

14 Fundraising Special Events Policy

All fundraising events held under NSAC auspices and for which official receipts may be required must be approved by the Executive Director, Development and External Relations. In cases where tickets are sold and the purchaser is to receive an official receipt, the value of the receipt will be the cost of the ticket less the value of any goods or services received.

14.1 Rationale

Special events such as charity golf tournaments, celebrity concerts or auctions can help raise money for special projects. These events also reflect on NSAC's public image and therefore need to be reviewed by the Executive Director, Development and External Relations.

Canada Revenue Agency has ruled that the value of a gift must be reduced by the value of the benefit received by the donor. The Development Office can issue receipts for special events under this restriction.

14.2 Guidelines for Implementation

If planning a special event, the Development Office should be consulted to help determine the value of an official receipt that might be offered to a donor. Sponsors generally receive benefits that are considered greater than the nominal limited (advertising) and therefore do not receive receipts for income tax purposes.

14.3 Fair Market Value Test

The charity must determine what the value of the event would be if it were sponsored as a profit making commercial venture. Then a receipt can be issued for the ticket price charge minus this value, except in certain circumstances such as those noted below.

14.4 Door Prizes and Raffles

Official receipts for a gift or donation are not to be issued where the price of admission, dinner, ball, concert or show includes participation in a lottery draw for prizes or awards which have more than a nominal value. Any payment which might be considered in excess of the fair market value of the price of admission for the event is presumed to be for participation in the lottery or draw. Put another way, if a fundraising event offers one or more substantial prizes, it will not qualify as an event for which a receipt for tax purposes can be issued.

14.5 Auctions

When a dinner is coupled with an auction, Canada Revenue Agency will not allow receipts to be issued for the donation portion of the ticket price - unless members of the public are invited to and allowed to bid at the auction without purchasing a ticket to the dinner.

Canada Revenue Agency has recently changed it's position on the recipting of asset purchased at charity auctions. Receipt can now be issued for the positive difference between what is paid of an item purchased at auction and the true value of the auctioned. The same is true when a charity sponsors a sale and receives a percentage of the sales price.

14.6 Golf Tournaments

15 Canada Revenue Agency Interpretation Bulletins

The following is a list of Canada Revenue Agency Bulletins that are used for interpretation and are available at the Development office or on line at the Canada Revenue Agency website.

IT-110R3 Gifts and Official Donation Receipts
IT-139R Capital Property Owned on December 31, 1971 - Fair Market Value
IT-209R Inter-Vivos Gifts of Capital Property to Individuals Directly or Through Trusts
IT-226 Gifts of Residual Interest to a Charity
IT-244R2 Gifts of Life Insurance Policies as Charitable Donations
IT-288R Gift of Capital Properties to a Charity and Others
IT-297R2 Gifts in Kind to Charity and Others
IT-407R2 Disposition of Canadian Cultural Property
IT-504R Visual Artists and Writers
IT-111R Annuities Purchased from Charitable Organizations
IT-226 Gift of Residual Interest to a Charity
IT-244R2 Gifts of Life Insurance to a Charitable Organization
IT-288 Gifts of Tangible Capital Properties to Charity and Others Information Pamphlet Gifts in Kind