Donations and Fundraising

Purpose

The Cambridge Public Library Board welcomes and encourages the solicitation and acceptance of donations that help to fulfill its mission, vision, values and strategic priorities. This policy is intended to facilitate the gift-giving process, providing prospective donors with many options for giving.

Furthermore, the purpose of the policy is to ensure that all donations, gifts and fundraising initiatives are pursued, invested and used in alignment with Cambridge Public Library’s mission, vision, values and strategic goals.

The policy also ensures that informed decisions are made on the acceptance of gifts and that such gifts are receipted in accordance with the requirements of the Canada Revenue Agency, the Income Tax Act and other applicable regulations.

This policy does not apply to:

Sponsorships;
grants or funds obtained from various levels of government or other funding bodies, or
the library’s participation, contribution or partnership with external projects or organizations.

Definitions

Bequests: are a specific provision in a will directing assets from an estate to Cambridge Public Library. Bequests from individual’s estates may have designated requests associated with the donation.

Designated donations: are a type of donation (such as a bequest) where a donor indicates where they desire their donation to be allocated.

Donation: adhering to the Canada Revenue Agency (CRA) definition, a donation or ‘gift’ is a voluntary transfer of property to the library made without the expectation that any benefit will accrue to the donor and are not made with any contingency. The policy further articulates the forms of approved monetary and non-monetary contributions.

Endowment: a permanently restricted fund that is controlled either by the donor’s restrictions or the organization, the capital of which is held in perpetuity and the investment income earned only used for the purpose intended.

Fair Market Value: means the highest price, expressed in dollars, that a property would bring in an open and unrestricted market, between a willing buyer and a willing seller who are both knowledgeable, informed and prudent, and who are acting independently of one another (Canada Revenue Agency, “Fair Market Value” Summary Policy CSP-F02).

Fundraising: the legitimate process of collecting money and/or non-monetary items by requesting donations from individuals, groups, foundations, and corporations.

Gifts in Kind: also known as non-monetary donations, are gifts of property. A contribution of service (i.e. time, skills, staffing) is not property and does not qualify as a gift or gift in kind for purposes of issuing official donation receipts.

Recognition: a form of public acknowledgement and expression of thanks by Cambridge Public Library as outlined within this Policy.

Policy

Registered Charitable Organisation

The Cambridge Public Library is a registered Canadian charity. Our Canadian Registered Charity number is 10683 4377 RR 0001.

Donations – General Principles

The Cambridge Public Library (CPL) reserves the right to accept or decline any proposed donation, both monetary and non-monetary.

CPL reserves the right to use the donation in the best interest of the library, and shall make decisions regarding the investment, disposition and eventual dispensation or disposal of all donations.

CPL evaluates all donations and will accept only those which it feels align with the mission, vision, values, strategic priorities and standards of the library and welcomes unrestricted monetary donations. Further articulated in the next section, the CEO is granted authority to accept or decline stipulations from donors on designated monetary donations and will advise the board on such recommendations.

CPL will accept only unconditional non-monetary donations. Once offered and accepted, these donations become the property of CPL.

Monetary and non-monetary donations will become the exclusive property of the library and must be clear and unencumbered when given. No conditions may be imposed to a donation (or “gift”) after its acceptance.

Participation in online donation portals is at the discretion of the CEO in accordance with this policy.

Details related to the condition of acceptance for types of donations is further articulated in administrative Schedule A.

Donation Administration

The Cambridge Public Library (CPL) will issue charitable receipts in accordance with CRA guidelines. With the support of the Library Board, the CEO is authorized to accept or decline donations up to $74,999 and direct staff to expend monetary donations or to transfer funds to the Donation Investment Fund, whichever is considered to be in the best interest of the library. Where monetary donations exceed $75,000 in a single quarter, the CEO will advise the Board of the dispensation of donations and may include a recommendation to transfer funds to the Donations Investment Fund. All donations greater than $75,000, in a single act or where the total value by the donor is projected to be greater than $75,000 within the calendar year, is recommended for approval or decline by the CEO to the Board; such reporting will include a recommendation for dispensation or to transfer funds to the Donations Investment Fund. To the extent a designated donation is not spent within a calendar year, the unexpended amount will be treated as a deferred revenue and may be transferred to the Donation Investment Fund as authorized by the CEO. The Donation Investment Fund will be invested and accessed according to the Investment Policy. CPL is committed to protecting the privacy of donors and shall maintain donor records, the contents of which shall remain confidential unless the donor agrees otherwise. CPL will not issue official donation receipts for donations it receives from other registered charities. CPL can acknowledge gifts received from other registered charities by way of a letter or ordinary receipt. The charity should still provide its registration number to CPL for reporting requirements.

Fundraising – General Principles

The Cambridge Public Library will only actively undertake a fundraising program or campaign for the following reasons:

if it has been deemed desirable to acquire additional library materials or
to support established business projects, strategic actions or new/enhanced services.

Fundraising Administration

Fundraising activities applies to actions to solicit both monetary and non-monetary donations. All related activities will be conducted in accordance with CRA regulations.

With the support of the Library Board, the CEO is authorized to direct staff to:

establish specific fundraising programs or campaigns; such campaigns will also include suitable recognition practices
initiate fundraising activities in accordance with this and other related policies and statutory regulations.

All funds and gifts raised will be used for the stated purposes of the fundraising program or campaign. To the extent fundraising income is not spent on the stated purpose during a calendar year, the unexpended amount will be treated as a deferred revenue and may be transferred to the Donation Investment Fund as directed by the CEO.

Recognition of Donations

The Cambridge Public Library (CPL) will maintain a donor recognition program in support of this policy. The purpose of the donor recognition program is to thank donors, to encourage others to give, and to steward healthy long-term relationships between CPL and its donors.

Recognition of donors will conform to established guidelines.

Unless otherwise stated in the donor recognition program, acceptance of any donation contribution which involves a proposal to have the donor recognized is conditional upon recommendation by the CEO for approval or decline by Board for approval.

While the Board may elect to recognize significant contributions to programs, services and spaces, facility naming is not available as a form of recognition for any contribution.

Individualized recognition programs will be put in place for fundraising events or campaigns, and as required by granting bodies.

Administrative Schedule A: Donations and Conditions of Acceptance

The Cambridge Public Library (CPL) accepts the following types of contributions:

Anonymous Gifts: under the Income Tax Act, an official donation receipt must show the name and address of the donor (and for an individual, his or her first name and initial). However, the CRA has made an administrative decision to allow registered charities to issue official donation receipts for anonymous gifts if certain procedures are followed. The Library will comply with these procedures when issuing official donation receipts for anonymous gifts.
Cash gifts: Cash gifts include funds received by cheque, money order, bank draft, money (bills and coin), debit or credit card. This includes online donations through online portals such as CanadaHelps.org. Where CPL uses an online donation portal, such charitable receipts will be issued via the operator of the donation portal.
Materials: CPL may accept donations of books, audiovisual material, and other materials as long as they are suitable to the needs of the Library. CPL reserves the right to refuse donations of materials and the acceptance does not guarantee the Library will add it to the collection. Materials must be in pristine condition and must be published or released in the last five years. We do not accept donations of magazines, newspapers, textbooks or other technical, medical or law books. Multilingual material may be considered if they are languages that are part of the library’s existing multilingual collections. All of these gifts are considered in-kind and no charitable receipt or fair market value estimation will be established. The same selection and deaccessioning principles apply to materials donated as to purchases as per CPL’s Material Selection policy. Materials not added to the collection are sold in the library’s book sale or recycled. Donors are asked to contact the Library to make inquiries prior to the Library’s acceptance of such gifts.
Gifts in-Kind: in accordance with this policy, CPL may accept or solicit gifts in-kind (non-monetary donations). If requested by the donor, only items that are kept for CPL use will be receipted based on the fair market value. For non-monetary donations under $1,000, there will be no independent appraisal. For gifts in-kind greater than $1,000, an independent appraisal is required. The donor will be responsible for sourcing and the cost of obtaining an independent appraisal from a professional approved by CPL. The CEO may authorize payment of valuation costs by exception. This does not include gifts in-kind as part of a grant application.
Art: CPL will accept or decline gifts of individual works of art or collections in accordance with CPL’s Acquisition and De-Acquisition of Permanent Art Policy.
Planned gifts, such as bequests or gifts of life insurance: donors are encouraged to discuss the proposed gift with independent legal and/or tax advisors of the donor’s choice so as to ensure that the donor receives a full and accurate explanation of all aspects of the proposed charitable gift.
General Guidelines- Life Insurance
A donor may gift a life insurance policy to the Library by:
- Assigning a fully paid-up policy to the Library;
- Assigning a pre-existing life insurance policy on which premiums remain to be paid;
- Creating a new policy in the Library’s name; or,
- Naming the Library as a primary or successor beneficiary of the proceeds.
In the event that a policy is gifted to the Library on which premiums remain to be paid, the donor will continue to pay the premiums until the policy is paid in full. If the donor ceases to make premium payments, the CEO will make a recommendation to the Board as to whether or not it is in the best interest of the Library to continue the insurance premium payments, or to allow the gift to fail.
Securities: are considered a unique form of property which can be easily donated to CPL when they fit the criteria identified (e.g., company stocks, bonds, mutual funds and royalties).
Guidelines:
- CPL cannot accept gifts of securities when one of the following conditions exist:
  - Shares are from a privately held company,
  - Liquidating/selling the shares immediately is not possible/expected,
  - Securities are not actively traded,
  - Fair market valuation of the securities is not easily determined.
- Gifts of stocks/securities/shares will always be sold/liquidated as quickly as possible following transfer to CPL unless otherwise advised by CPL’s financial advisor.
- Tax receipts can be issued for donations of shares/securities/stocks, and the value of the donation will be based on the closing value of the shares the day they are received in CPL’s ownership.
Any proposed transfers of property of significant value (such as real estate) will be recommended for approval or decline by the CEO to the Board in accordance with the Public Libraries Act.