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:
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.
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:
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.
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.
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.
b. Research Funds
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.
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.
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 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.
When determining the eligible amount of the ticket price for a fundraising event, the following rules apply:
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.
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:
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.
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.
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:
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: