- American Association of Fund Raising Counsel (AAFRC)
- Association for Healthcare Philanthropy (AHP)
- Council for Advancement and Support of Education (CASE)
- Association of Fundraising Professionals (AFP)
It's important for our donors to know that gifts to UM are managed with care and invested wisely. Here, you can learn about the university's endowment, read the donor's bill of rights and explore our policies related to giving.
The University of Manitoba’s endowment—the University Investment Trust (UIT)—is comprised of more than 2,600 funds valued at over $935 million and supported by thousands of donors. Because of you, UM programs and students are receiving stable, dependable support, that will be felt for generations to come.
Endowed funds are invested by the Trust Investment Committee, an advisory committee to UM’s Board of Governors. Each endowment fund generates annual earnings, a portion of which is allocated for spending according to the fund’s purpose. The annual portion to be spent is currently 4.25 per cent of the fund’s average market value in the four preceding years, calculated on the basis of a rolling 48-month period.
Capital Donations and Contributions is the total of all capital contributions to the fund since its inception.
Capitalized Unspent Income represents the accumulation of any unspent spending allocations at the end of each year. Capitalized Unspent Income is available for spending in accordance with the terms of reference.
Market Value is the value of the fund adjusted for market appreciation or depreciation, which is comprised of the cumulative net investment income attributed to the fund. Both the Capital and Capitalized Unspent Income are invested and have a market value.
Spending Allocation is based on a rolling 48-month calculation, where the payout is 4.25% of the fund’s average month-end market value during that period. Both the Capital and Capitalized Unspent Income are included in this calculation. The spending allocation is calculated based on the calendar year, not the fiscal year, in order to be able to provide the spending allocation at the start of the fiscal year, April 1.
Account Activity is the total amount that was transferred/spent out of the fund. This could include awards that were disbursed, or money allocated to support the purpose of the fund.
Balance at Year End is any unused money at the end of the fiscal year. This amount is moved the Capitalized Unspent Income.
UIT value in millions as of March 31, 2023
Value in millions generated in 2022/23 to support students
Value in millions of gifts UIT received in 2022/23
One year return vs benchmark of -0.4 per cent
By establishing an endowed fund at UM, you will build a stable source of funding for Manitoba and the world beyond. Your investment will transform the lives of UM students and faculty as well as millions of others who benefit from UM’s research, scholarship and innovations. Please know that we deeply value our trust in us and are committed to managing and stewarding your gift responsibly.
Your endowment can reflect your vision, goals and overall desire to make a difference through student awards, programs and/or chairs/professorships/fellowships. UM, in turn, promises to manage your investment wisely and spend your funds as you intended, with transparency and integrity. To learn more about what to expect as an endowed fund donor, view our Welcome to the Endowment Package.
To create an endowment or learn more, please contact us.
Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To ensure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights:
The University of Manitoba (hereinafter “the university”) receives financial and in-kind support from individuals, organizations, foundations, trusts and government through voluntary charitable contributions, research contracts and grants and sponsorships. Such gifts are critical to the university’s mission to develop and maintain quality in faculty, students and facilities.
This document focuses primarily on policies and procedures for which charitable donation receipts (hereinafter “Receipts”) are issued.
These policies will allow staff members responsible for attracting private support to:
The university encourages donors to make outright and/or deferred gifts. A description of the types of gifts accepted, the types of designations that donors can make and the principles that guide professional staff and volunteers in the gift planning process follow.
The University of Manitoba receives and administers gifts in accordance with donors’ instructions, insofar as they are within the guidelines set by the university from time to time. Gifts can be categorized as follows:
To ensure continuity and integrity of restricted gifts over time, designated or restricted gifts include language similar to:
In the event that circumstances make the specified use or purpose of this gift no longer practicable or desirable, the university is hereby authorized to make changes in its use in keeping as far as possible with the spirit and general intent of the gift.
To facilitate efficiency in investing and administering the funds, designated or restricted gifts should contain language similar to:
The capital and the income therefrom is to be administered in accordance with the university’s investment policies as amended from time to time.
Certain gifts require special arrangements by the donor and/or the university as follows:
Eligible Amount: The amount that the fair market value of the property gifted exceeds the amount of the advantage, if any, received by the donor with respect to the gift.; The eligible amount is the amount claimed on the donor’s tax return.
Advantage: The amount of benefit of any kind that is received by the donor, or person not dealing at arm’s length with the donor, has received or is entitled to receive at the time, or in the future from when the gift is made. Furthermore, at no time can the advantage exceed 80 per cent of the total value of the gift.
Outright Gifts:Any corporate gift, or a gift of any type of property that is from an individual, that is received while the donor is alive and is readily available for use by the university.
Excepted Gift: A gift of privately held shares where the donor is at arm’s length with all directors, trustees, officers, and/or like officials of the university. A tax Receipt is issued for the value as at the date of the gift, not when it is received into the university’s account.
Deferred Gifts: A gift of any type of property that results from the death of an individual or requires a specified period of time to elapse before the property is available for use by the university. Therefore, deferred gifts include interests in trusts or similar arrangements.
In-kind Gifts: A gift of property that is not cash, or near cash.
Near Cash: Bonds, money market mutual funds, GICs, T-bills, and other short term investments that have readily available markets to convert them into cash.
Publicly Traded Securities: Shares, warrants, rights, debt obligations that are traded on a prescribed stock exchange, shares of the capital stock of a mutual fund corporation, a unit of a mutual fund trust, or an interest in a related segregated fund trust.
Prescribed Stock Exchange: An exchange listed in Regulation 3200 of the most recent version of the Income Tax Act of Canada. Generally speaking, any major exchange in Canada or around the world.
Insurance: Gifts where an insurance policy is purchased with the university as the owner, or ownership is gifted to the university at a later date (policy assignment), or the death benefit is assigned to the university as a beneficiary. A tax Receipt may be issued for the premiums paid only when the university owns the policy. The university will not own, or accept ownership of, any life insurance policy that is not a permanent policy (Term to 100, whole life, or universal life).
Death Benefit: Refers to the ultimate tax-free payout from the policy at the death of the insured. Death benefits can be guaranteed at an amount, or can vary over time as defined in the policy. At all times, payment to the university of the eventual death benefit ultimately destined for the university must be a certainty. In order to qualify as an eligible amount, the donor, and not the university, must own the policy.
Premiums, Life Insurance Premiums: Cash payment that is required to fund an insurance policy. Premiums are always required for the lifetime of the insured (or to age 100). However, depending on the type of insurance policy, the premiums may be paid by the donor on a regular basis, OR after a certain number of premiums have been paid, from funds accumulated within the policy (cash value).
Net Cash Surrender Value (AKA Cash Value): For the purposes of a gift, the amount of excess funds held within the policy – less any policy loans outstanding. Cash value normally accumulates in the early stages of a policy when the cost of insurance is less than the premiums paid. Over time, the cash surrender value may be withdrawn by the owner of the policy as policy loans, or used to fund the required premiums for as long as the cash surrender value remains in a positive balance. If the premium demand exceeds the ability of the cash value to fund it, the policy may collapse.
Policy Loans: Situations where the owner has withdrawn some of the cash value from the policy. Policy loans are repaid under a payment schedule with interest. If the owner refuses to repay the loan, the cash value will be used to repay the loan. If the cash value expires, then the policy will lapse. Tax Receipts can be issued for repaid policy loans when they are repaid after ownership of the policy has been transferred to the university.
Real property: For the purposes of this policy, refers to property that cannot be moved. In general terms, real estate (e.g., cottages, houses, buildings, and vacant lots).
Non-real Property: Property that is not considered to be real property (e.g., artwork, investments, machines, etc).
Capital Property: Includes all depreciable property and any other property (real and non-real) which if sold, would result in a capital gain or loss.
Depreciable Property: Property that is normally capital property, which is used to earn income from a business (i.e. a machine or rental property).
Personal use Property:With the exception of Listed Personal Property (see below), the university does not readily accept personal use property. Property that is owned primarily for personal enjoyment (e.g. household items, boats, cars, furniture, etc.) Such property is normally not expected to have increased in value; hence there is no capital gain or loss for the disposal of this type of property. A tax Receipt can be issued for the fair market value and personal property is deemed to have a minimum cost and fair market value of $1,000. Thus, any disposal (including gifting) of personal use property that has a value and cost less than $1,000 is a non-taxable event for CRA.
Listed Personal Property (LPP): A sub-set of personal use property that includes only the following assets:
The distinction between this type of property and personal use property is that LPP is expected to have gained in value. Thus disposal of it may give rise to a LPP capital gain or LPP loss. The minimum cost and fair value is $1,000 as with personal use property.
Canadian Cultural Property (Cultural Property): Any property that has been certified by the Canadian Cultural Property Export Review Board. Gifts of Cultural Property are subject to enhanced tax benefits.
Charitable Remainder Trust (CRT): A trust where the university is a beneficiary of the remainder interest in the trust. Such interest is paid to the university after a prescribed period of time has elapsed (including death of the income beneficiary/beneficiaries) and at no time may the capital of the trust be encroached upon by anyone.
Residual Interest: A residual interest is part of a property that is real property (e.g., building, land) that is left to the university at some time in the future. Typically such property does not produce income for the donor.
Beneficiary (Trusts, Life Insurance Policies, Registered Funds): The person for whose benefit the trust was created. For charitable remainder trusts, the donor is normally the income beneficiary (income interest) and the university is the capital beneficiary (remainder interest). The university may be the beneficiary of life insurance policies and hence is entitled to the death benefit. Furthermore, the university may also be named the beneficiary of RRSP or RRIF (registered funds).
The Income Tax Act of Canada (the "ITA") defines a gift in sections 248(30) and (31). A gift is a voluntary transfer of property where the donor demonstrated donative intent. In most cases, donative intent exists when any advantage (benefit) received by the donor as a consequence of making a gift does not exceed 80 per cent of the total amount contributed.
A gift is made in any circumstance where all three of the conditions listed below are satisfied:
Canadians making charitable donations are entitled to tax credits that reduce taxes directly. Consult Development & Advancement Services for current information.
Canadian corporations and American taxpayers receive tax deductions. In most cases, the Internal Revenue Service recognizes Receipts issued directly by the university as tax deductible. In certain circumstances, gifts must be made through the University of Manitoba Foundation (see University of Manitoba Foundation USA Inc., section V B).
Gifts of cash or securities that are readily marketable, and, to which no conditions are attached, are routinely accepted and administered by Development & Advancement Services.
All gift agreements requiring execution by the university shall first be reviewed and approved by the university’s Legal Counsel. Where substantially the same agreement is used repeatedly, only the proforma needs to be approved.
The university will assess the value, and decide whether to accept or reject the following types of gifts, in order to protect the interests of donors and the university:
Gifts that require outside professional appraisal or valuation, that may put obligations on the university, or expose it to potential liability, are subject to review by the University’s Gift Acceptance Committee (hereinafter “the Committee”) in accordance with the policies and procedures in this document. The Committee shall include, but not be limited to the following:
The Committee is responsible for assessing whether the terms of gifts are acceptable to the University of Manitoba, whether the University of Manitoba has the capacity to process and manage the gift and for ruling on certain gifts where policy application is unclear. In carrying out their responsibilities, the Committee will oversee the process described below.
Before deciding to accept a gift, relevant information shall be ascertained, including:
Not withstanding property detailed above, prior to acceptance, gifts in excess of $100,000 may be referred to the Committee for any reason.
The University welcomes gifts that support the pursuit of its mission. Indicators that a gift is acceptable include:
The university has the right to decline any gift that is not consistent with its mission. Gifts will not be accepted by the university that:
In the case of gifts-in-kind, unless otherwise agreed by the university through the terms of the deed of gift, all such gifts may be disposed of under the following guidelines:
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.
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:
The following organizations may issue tax Receipts under their own numbers:
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.
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.
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.
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.
a. Award Funds/General Funds:
For establishment of a new named trust or endowment account, a minimum contribution of $25,000, not including matching funds, is required.
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.
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.
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.
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.
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 per cent of the total fair market value of the equipment.
Receipts can be issued for the charitable portion of ticket prices for university-approved fundraising events. The procedure is as follows:
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 per cent 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:
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.
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.
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:
Gifts to the university shall be reported in a manner consistent with the standards recommended by the Canadian Association of University Business Officers (CAUBO), the Council for the Advancement and Support of Education (CASE) and the Canadian Council for the Advancement of Education (CCAE).
Gifts to the university and accompanying correspondence are handled with discretion. Development & Advancement Services maintains records required by Canada Revenue Agency for Receipting purposes. Access to these records is restricted to appropriate staff in Development & Advancement Services and the Comptroller’s Office and senior executives of the university.
The university will not release the names of alumni, friends and donors to unrelated organizations.
The university will comply with any legal obligation to disclose names of donors and the nature of their gifts (for example, obligations that may arise under the Income Tax Act, the Freedom of Information and Protection of Privacy Act or other relevant statutes).
The university encourages donors to make donations directly to the university to minimize the costs of investment and administration of trust and endowment funds. The university’s Trust and Endowment Funds are professionally managed and administered in accordance with The University of Manitoba Act and the University’s Investment Policy Statement as amended periodically.
However, where the donor wishes to establish a private foundation and requests that one or more university representative(s) act as directors of the Foundation, the Committee must approve of such appointments.
With regard to the administration of invested funds:
Gifts to the university will generally be recognized as follows:
It is important to differentiate between who is receiving the Receipt and who is being recognized for the gift. The rules regarding issuance of Receipts (Section IV D) do not apply to recognition. Recognition for a gift can be given to whomever the donor wishes (within reason). Some examples are:
There are many gift-planning options. Development & Advancement Services staff works with donors and their advisors to design gifts that meet each donor’s philanthropic objective while maximizing tax and other benefits, and that meet the university’s needs. The following guidelines are established to ensure that gifts accepted by the university will be cost effective:
Bequests have historically been the most frequent kind of deferred gift, and have contributed significantly to the building of institutional endowment funds. The encouragement of bequests is one of the highest priorities of the university.
The Cultural Property Export and Import Act (hereinafter “the 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. The university is designated to receive this type of property thus enabling the donor to receive the enhanced tax benefits described below.
The charitable remainder trust is a form of a residual interest gift. The donor ("Settlor") transfers property to a trustee who holds and manages it. Trusts are powerful and flexible planning tools. Typically, the income from the trust is paid to the income beneficiary, which is usually the donor or his or her family. The university is named the capital beneficiary of the trust and entitled to the trust’s remainder when the trust is collapsed, which is normally at the death of the settlor. When the trust terminates (either at the death of the income beneficiary/beneficiaries or after a term of years), the trust remainder is distributed to the university. As with all charitable remainder trusts, in which the university is named as a beneficiary, the Settlor is entitled to a Receipt for the present value of the remainder interest
Donors may make gifts of privately owned art or other valuables. The university will not accept art or similar property that is registered as a tax shelter.
Donors may make donations of books, manuscripts and papers that are of interest and/or value to the university. Refer to the University of Manitoba Libraries Gift Acceptance and Administration policies, as they may be revised from time to time.
There are various methods by which a life insurance policy may be contributed to the university. A donor may:
Gifts of real estate may be made in various ways: outright, residual interest in the property, or to fund a charitable remainder trust. The following guidelines pertain to gifts of real estate in general. The Gift Acceptance Policies described elsewhere in this document apply. Where real estate is transferred to a charitable remainder trust, additional requirements of the trustee must be met. All gifts of real estate will be referred to the Gift Acceptance Committee for approval.
The gift annuity is an arrangement whereby a donor transfers property to the university pursuant to an agreement authorizing the university to purchase a commercial prescribed annuity that will pay a stipulated amount to the donor. Funds in excess of the amount required for purchase of the commercial prescribed annuity are retained by the university and used for purposes specified by the donor and acceptable to the university. A tax receipt will be issued for the amount retained by the university provided the value of the payments to the donor does not exceed 80% of the total funds contributed.
The university will not issue gift annuities but may accept property from a donor, pursuant to an agreement authorizing the university to:
A residual interest gift refers to an arrangement under which property is deeded to the university, while the donor retains use of the property for life or a term of years. For example, the donor might give a residual interest in a painting and retain possession of it. All gifts of Residual Interests will be referred to the Gift Acceptance Committee for approval.
Donors may make gifts of privately owned shares and business interests. The university may accept these provided that the university assumes no liability in receiving them. In some instances, the corporation is willing to redeem privately owned shares, or other stockholders are willing to purchase them. All gifts of privately held securities will be referred to the Committee for approval.
Unit 200-137 Innovation Drive
University of Manitoba (Fort Garry campus)
Winnipeg, MB R3T 6B6 Canada
Charitable registration number: 11926-0669-RR0001