Guidelines for Specific Gifts

1. Cash: Gifts of cash and cash equivalents.

2. Publicly-traded securities: Gifts of marketable, publicly traded securities shall be scrutinized and accepted by the Foundation’s Investment Manager. The decision to hold or sell the securities will be made by the investment manager.

3. Gifts of Property Including Real Estate, Art, Jewellery, etc.: Gifts of property or real estate may be made in various ways: outright, residual interest in it, or to fund a charitable remainder trust. Where real estate is transferred to a charitable remainder trust, additional requirements of the trustee must be met (see Charitable Remainder Trusts below).

Guidelines:
(a) Donors shall provide qualified appraisals of proposed gifted property.
(b) The Foundation may, at its discretion, obtain its own independent appraisal, and, in such cases, issue a receipt based on the Foundation’s own appraisal.
(c) The Foundation shall satisfy itself that the donor has clear title to the property.
(d) The Foundation shall review all pertinent factors, including in the case of real property, zoning restrictions, marketability, prior land use, current use and cash flow, to ascertain that acceptance of the gift would be in the best interests of the Foundation.
(e) If the real estate possibly contains toxic wastes, the donor shall secure an environmental audit and provide the results to the Board of Directors. No property containing toxic wastes shall be accepted prior to removal and/or indemnification of the Foundation against all present and future liabilities.

4. Bequests: A donor who advises the Foundation, in confidence, of a proposed testamentary gift to the Foundation, shall be asked to provide, if possible, a copy of that section of the will naming the Foundation. The donor may also wish to execute an agreement with the Foundation directing the charitable use of the proposed testamentary gift. The Foundation will not serve as executor of a donor’s will.

5. Gifts of Life Insurance: There are various methods by which a life insurance policy may be contributed to the Foundation. A donor may:
(a) Commence a life insurance policy of which the Foundation is the owner and beneficiary;
(b) Assign irrevocably a paid-up policy to the Foundation;
(c) Assign irrevocably a life insurance policy on which premiums remain to be paid and a charitable tax receipt shall be issued for premium amounts, and/or
(d) Name the Foundation as a primary or successor beneficiary of the proceeds.

When 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.

6. Gift of a Residual Interest: This type of gift refers to an arrangement under which a property interest is conveyed to the Foundation, but the donor retains use of the property, or income from the property, for life or a specified number of years. For example, the donor might give a residual interest in a personal residence and continue living there, or a residual interest in a painting and continue to display it. The owner is entitled to a charitable tax receipt for the present value of the residual interest.

The donor shall continue to be responsible for real estate taxes, insurance, utilities and maintenance after transferring property title unless the Foundation, upon prior approval of the Board of Directors, agrees to assume responsibility for any of these items. The Foundation is entitled to require that the donor provide proof of payment of those expenses for which the donor is responsible.

The Foundation reserves the right to inspect the property from time to time to assure that its interest is properly safeguarded.

7. Charitable Remainder Trusts: A charitable remainder trust is a form of a residual interest gift. The donor (‘settlor’) transfers property to a trustee who holds and manages it. If the property is income producing, net income after payment of all expenses will be paid to the donor and/or other named beneficiary. When the trust terminates (either at the death of the beneficiary/ies or after a term of years), the trust remainder is distributed to the Foundation. If the trust is irrevocable, the donor is entitled to a gift receipt for the present value of the residual trust. The Foundation will not serve as the trustee of a charitable remainder trust, but may refer the donor to a trust institution that provides this service.

Guidelines:
(a) A charitable remainder trust may be funded with cash, securities, real estate or other property acceptable to the trustee and to the Foundation. Real and personal property shall be accepted for a trust only after a thorough review of cash flow, potential liabilities including toxic waste cleanup costs, and other factors necessary to assure that the gift is in the best interests of the Foundation.

(b) The value of the trust shall ordinarily be greater than $50,000 and the age of the beneficiaries shall ordinarily be at least 50, however, the Board may in its discretion waive this guideline.

While the Foundation may provide prototype agreements, a trust agreement shall be drafted or reviewed by the donor’s own solicitor to assure, before it is executed by the donor, that it fulfills legal requirements, that it is appropriate to the donor’s circumstances, and that it accurately reflects the donor’s intentions.