RESOURCE MANUAL. Key Policies for Canadian Community Foundations. Supplement to the Policy Guidelines and Template Manual

Transcription

1 RESOURCE MANUAL rue Albert Street, Ottawa Ontari K1P 5E7 T F cfc-fcc.ca Key Plicies fr Canadian Cmmunity Fundatins 2008 Supplement t the Plicy Guidelines and Template Manual CF-LINKS: Cmmunity Fundatin Leadership, Innvatin, Netwrking, Knwledge and Supprt.

2 ACKNOWLEDGEMENTS Prject Directr: Jane Humphries, Vice President, Organizatin and Prfessinal Develpment Cntent: Liz Palmieri, Executive Directr, Niagara Cmmunity Fundatin Design: Carrie Nixn, Prject Crdinatr, CFC Translatin: Jsée Ry Cntact Infrmatin: Cmmunity Fundatins f Canada inf@cfc-fcc.ca r T: Cpyright Cmmunity Fundatins f Canada Using and adapting materials frm CFC Cmmunity Fundatins f Canada (CFC) is cmmitted t sharing its resurce material and learnings. Many f CFC's publicatins are available free-f-charge frm its Web site. Other publicatins and materials can be purchased frm CFC. The material in CFC s manuals is intended fr its member cmmunity fundatins. CFC members are encuraged t cpy and adapt the material in this manual, as needed, fr exclusive use within their fundatins. Fr all ther rganizatins wishing t qute the material in this manual, references t r simple excerpts frm this publicatin can be made with prper acknwledgement f CFC, the publicatin s full title and date f publicatin. Thse wanting t adapt r use the material in this publicatin mre substantially must cntact CFC at r inf@cfc-fcc.ca. 2

3 Intrductin This supplement t CFC s Plicy Guidelines and Template Manual is designed t be a starting pint fr yur cmmunity fundatin t put in place all the plicies required as part f CFC s membership requirements. Use these plicy examples as a starting pint t create yur wn. A mre in-depth examinatin f the cnsideratins required fr each plicy is available in the Plicy Guidelines and Template Manual. It prvides each cmmunity fundatin Bard f Directrs with key questins t be cnsidered in develping plicy that is cnsistent with their mdel f gvernance as a Grup I, II, r III cmmunity fundatin. 3

4 Index f Key Plicies These plicy examples crrespnd with plicies available in CFC s Plicy Guidelines and Template Manual. Gvernance and Assessment These plicies are designed t demnstrate an rganizatin s bligatin t mdel high standards. Fr the purpses f these plicies, gvernance shall be defined as the act f gverning prviding leadership, directin and ensuring sund management Gvernance and Gvernance Assessment* Rle f Officers* Financial Accuntability* Cnflict f Interest* Cnfidentiality* Risk Management Financial Management 2.01 Investment Plicy Lng Term* Investment Plicy Shrt Term and Securities Funds, Fund Types and Criteria fr Naming* Administrative Fee Authrizatin Dnatin Recrding and Receipting Expense Reimbursement Dnr and Gift Management 3.01 Gift Acceptance Dnr Recgnitin and Stewardship Grant Management 4.01 Disbursement f Funds* Granting* Spending and Capital Preservatin Plicy General 5.01 Special Leadership Initiatives * This plicy is required fr membership in CFC. 4

5 Gvernance 1.01 Gvernance and Gvernance Assessment Bard members are respnsible fr: Being infrmed f incrpratin articles, bylaws, missin, and strategic plan Being infrmed f bard activities, the cmmunity and general trends in philanthrpy Attending bard meetings, serving n a cmmittee(s) and cntributing t the wrk f the bard Exercising care, diligence and skill that a prudent persn wuld shw in similar circumstances Ensuring that the financial affairs f the crpratin are cnducted in a respnsible, and transparent manner with due regard fr their fiduciary respnsibilities and public trusteeship Establishing the fundatin s verall directin thrugh the develpment, apprval, implementatin and mnitring f a strategic plan Vicing, clearly, respectfully and explicitly at the time a decisin is being taken, any ppsitin t a decisin being cnsidered by the bard Publicly demnstrating acceptance, respect and supprt fr decisins legitimately taken in the transactin f the bard s and/r fundatin s business Asking the directrs t review a decisin where the bard acted withut full infrmatin Wrking with staff, where apprpriate, n cmmittees; respect the rles f Bard and staff Serving the verall best interest f the crpratin rather than any particular cnstituency Implementatin: Bard members will be infrmed f their respnsibilities during an rientatin sessin cnducted within 2 mnths f jining the bard. A bard manual will be prepared fr all bard members and it is the respnsibility f each bard member t keep their manual updated. Gvernance The bard uses an administrative r peratinal mdel where the bard prvides directin and develps plicy and individual bard members perfrm administrative functins and help with direct service. This gvernance mdel will be reviewed n an annual basis and/r upn hiring staff. Implementatin: This mdel f gvernance will be cmmunicated t all cmmittee chairs and will be included in the fundatin s prmtinal materials. 5

6 Gvernance Assessment The bard will assess its effectiveness n an annual basis at the meeting immediately fllwing the annual general meeting. Implementatin: The fllwing will be assessed: bard rientatin, financial viability, understanding the bard s respnsibilities, effectiveness f planning directin and pririties f the fundatin, management f bard meetings, bard cmmitment t fundatin s missin and values, cmpliance with bylaws, and cnflict f interest. An actin plan will be develped t strengthen the bard s effectiveness. The bard will mnitr the plan. It is the respnsibility f the Bard Chair t reprt at each bard meeting n the implementatin f the plan. Mnitring: This plicy will be reviewed every tw years 6

7 Gvernance 1.02 Rle f Officers The fficers act tgether as the Executive Cmmittee. They have the authrity t act n behalf f the bard nly n matters that d nt impact the financial viability f the fundatin. All decisins made n behalf f the bard must be ratified at the next bard meeting. All decisins f the Executive Cmmittee must be in accrdance with the fundatin s plicies. Decisins can nly be made with a qurum f 50% plus ne. Bard Chair The bard chair: Is the spkespersn fr the fundatin, cnsistent with bard plicy and directin f the fundatin Chairs all bard meetings and Executive Cmmittee meetings Manages the activities f the bard and ensures that the bard fllws the rganizatin s plicies and thse impsed by statute r regulatin Ensures that the bard meetings are cnducted efficiently and effectively Ensures that the bard has the infrmatin and pprtunity necessary t cme t decisins n matters within its purview Sets the agenda in cnsultatin with the staff and ther bard members, where apprpriate Establishes the schedule fr meetings, ne year in advance, at a regular lcatin and time Ensures that items upn which discussin is deferred, are revisited within the apprpriate time perid Ensures that a vlunteer recruitment and recgnitin prgram is develped and implemented Vice Chair The Vice Chair assumes the duties f the Chair during his/her absence and will perfrm ther duties prescribed frm time t time by the bard. Past Chair The Past Chair will chair the Nminating Cmmittee and will perfrm ther duties prescribed frm time t time by the bard. Secretary The Secretary ensures that minutes f meeting f the bard and members are accurately kept and filed in accrdance with statute r regulatin and will perfrm ther duties prescribed frm time t time by the bard. The Secretary is als respnsible t ensuring that changes in bard are reprted t the prvincial Office f the Public Guardian and Trustee, Industry Canada r cmparable prvincial r natinal ffice. 7

8 Treasurer The Treasurer chairs the Finance Cmmittee and is respnsible fr: Ensuring that the financial recrds are updated and maintained Ensuring the preparatin f mnthly financial statements Ensuring timely banking and gvernment remittances Presenting financial statements t the bard n a quarterly basis Ensuring the preparatin and mnitring f the annual budget Ensuring that the annual T3010 is submitted t the Charities Directrate f the Canada Revenue Agency within six mnths f the fiscal year end Ensuring that there is an annual financial review by an accunting prfessinal f the fundatin s financial statements within 120 days f the fiscal year end Presenting the annual financial statements t the membership Sitting as a member f the Investment Cmmittee Mnitring: This plicy will be reviewed every tw years. 8

9 Gvernance 1.03 Financial Accuntability The fundatin s financial affairs will be cnducted in a respnsible manner, cnsistent with the ethical bligatins f stewardship and the legal requirements f prvincial and federal regulatrs. All dnatins will be used t supprt the charitable purpses f the fundatin, as specified in the gverning dcuments. All dnatins will be used fr the purpses fr which they were given. If an alternate use fr a dnatin is necessary due t prgram r rganizatinal change, this use will be discussed with the dnr r the dnr s legal designate. If n agreement can be reached with the dnr r dnr s legal designate, the unexpended part f the dnatin will be returned t the dnr. If the dnr is deceased and the fundatin is unable t cntact a legal designate, the dnatin will be used in a manner that is cnsistent as pssible with the dnr s riginal intent. The annual financial statements will be prepared using generally accepted accunting principles and standards established by the Canadian Institute f Chartered Accuntants, in all material respects. The annual reprt will disclse ttal amunt f dnatins and expenses including salaries and verhead and identificatin f gvernment grants and cntributins separately frm dnatins. The fundatin will meet r exceed the Canada Revenue Agency s requirement fr expenditures n charitable activities. When this is nt pssible, any excess gained in previus years will be used t meet this requirement. If this is nt pssible, the fundatin will apply t the Canada Revenue Agency t seek relief. The fundatin will cmply with sectin f the Incme Tax Act (Canada), which requires that all charities spend 80% f their receipted dnatins (excluding bequests, endwed dnatins that cannt be expended fr at least 10 years, gifts frm ther charities, gifts f insurance) n charitable activities. In additin as a charitable fundatin, the rganizatin is required t expend 3.5% f the value f endwed assets in supprt f charitable prgrams. Mnitring: This plicy will be reviewed every three years. 9

10 Gvernance 1.04 Cnflict f Interest Preamble It is imprtant that ur practices and decisins are withut suspicin r influence and avid any appearance f imprpriety, which may raise cncerns within r utside the rganizatin. The plicy is designed t ensure an rganizatin s reputatin fr integrity f decisins. As a result, this plicy addresses cnflicts f interest, real r perceived. This plicy will nt address the issue f what cnstitutes an actual cnflict f interest as a matter f law. As a result, the plicy is directed twards the surces f mst ptential cnflict. These include cnflicts arising as a result f affiliatin with: 1. An rganizatin which has, r is negtiating, a business relatinship A cnflict f interest arises in a situatin in which The fundatin has business r financial dealings with a bard member, vlunteer* r staff member individually r with a crpratin, partnership r ther business enterprise f which the bard member, vlunteer r staff member, r a member f his/her family*, is an fficer, directr, partner r substantial stckhlder: The primary purpse f a grant frm the fundatin t a qualified grantee is made t supprt a transactin with such a business enterprise. 2. An rganizatin seeking funding r ther supprt A cnflict f interest arises in a situatin in which the fundatin is cnsidering r makes a grant t a qualified dnee f which the cmmunity fundatin bard member, vlunteer r staff member, r a member f his/her family, is a fficer, directr, trustee r emplyee f the applicant rganizatin. This als includes situatins where bard members, vlunteers r staff members have an unfficial rle with the applicant rganizatin as a significant dnr, vlunteer, advcate r advisr *Vlunteer includes any persn serving vluntarily n a cmmittee with bard-delegated pwers r in any ther capacity that might give rise t a cnflict f interest. *Family includes spuse r partner, children, grandchildren, parents r grandparents, siblings (and their immediate families), as well as any member f the extended family living under the same rf. Implementatin: This plicy will be cnveyed t staff and all new bard and cmmittee members. 10

11 The first agenda item f bard and cmmittee meetings will be a declaratin f cnflict f interest. Members, including staff, will be asked t verbally declare cnflict f interest and t identify which agenda items that are in cnflict. The minutes f the meeting will reflect declared cnflicts. If the member is unsure, he/she will ask fr clarificatin and the chair will determine if there is a real r perceived cnflict. When there is a cnflict, the member will refrain frm all discussin pertinent t the subject and abstain frm vting. When there is a cnflict f interest fr a member f the Grants Cmmittee, the cmmittee member will temprarily remve themselves frm the cmmittee fr the rund f grants being assessed. It is the respnsibility f bard and cmmittee members t raise cncerns they may have regarding cnflict f interest with a member wh is perceived t be in cnflict. If there are still cncerns, it is their respnsibility t cnvey these cncerns t the chair. Bard, vlunteers and staff are prhibited frm accepting persnal gifts frm current and prspective prviders f services r gds and grantees with the exceptin f ccasinal hspitality r ther benefits f a nminal value. Bard members, vlunteers and staff are prhibited frm using privileged infrmatin gained in their rle fr persnal r prfessinal gain. Mnitring: This plicy will be reviewed every five years. 11

12 Gvernance 1.05 Cnfidentiality Bard members and staff are required at all times t respect the cnfidentiality f a dnr s name, level f gift and persnal circumstances that might identify a dnr, if asked t d s by the dnr r by mtin f the bard. Bard members are required t hld in strictest cnfidence all matters dealt with by the bard during in-camera meetings and matters relating t persnnel and prperty. A bard member may be asked t resign frm the bard if they have breached cnfidentiality. Implementatin: The abve cnstitutes the Statement f Cnfidentiality. Each bard member will sign and date this statement. Mnitring: This plicy will be reviewed every five years. 12

13 Gvernance 1.07 Risk Management Preamble Cmmunity fundatins have an pprtunity and an bligatin t mdel high standards f accuntability, at a time when charitable rganizatins are being clsely scrutinized by dnrs, gvernment agencies and the public. In additin, cmmunity fundatins need t ensure that adequate financial resurces are cmmitted t carry ut respnsibilities. The Bard f Directrs is respnsible t ensure that bylaws are current, that gvernance practices are cnsistent with the bylaws, adequate insurance prvisins are in place t prtect the rganizatin and bard frm ptential liabilities, resurces are sufficient t minimize risk t emplyees and vlunteers, cmpliance with statutry and regulatry requirement, that plicies are respected in actual practice; and adequate cntingency plans are in place against reasnably anticipated crises. Bylaws The bylaws will be reviewed every 5 years r when there is a significant change in gvernance. An Ad Hc Cmmittee f the bard will review the bylaws. Insurance The Finance Cmmittee annually will review the level and type f insurance and make recmmendatins t the bard whether adequate insurance prvisins are in place t prtect the rganizatin and the bard frm ptential liabilities. Crprate Recrds The Secretary is respnsible fr insuring that the crprate recrds are maintained and filed securely. This includes: all charter dcuments, bylaws, list f directrs, fficers and members, minutes f meetings f directrs and members, cpies f financial statements, banking dcuments, cnfirmatin f charitable registratin, cpies f T3010 and duplicate cpies f charitable tax receipts. Backup f Cmputer Recrds Offsite backup cpies are t be kept f all cmputer recrds. Fund Agreement There will be three cpies made f each fund agreement. One cpy f each fund agreement is t be filed ff-site in a secure lcatin. Mnitring: This plicy will be reviewed every five years. 13

14 Financial Management 2.01 Investment Plicy Lng Term Preamble The gal f the investment plicy is t utline the fundatin s investment principles and prvide guidelines t maximize return n investment in a prudent and diversified manner that will prvide adequate incme while ensuring requirements fr distributins t qualified dnees, administrative fees and the preservatin f the value f capital ver the lng term are carried ut. The investment plicy shall als ensure that the fundatin cnfrms t the requirements f applicable Federal and Prvincial Statutes and Legislatin and the Incme Tax Act (Canada) including the Trustee Act. Rles and Respnsibilities The Bard f Directrs is respnsible fr reviewing and apprving the Investment Plicy, fr ensuring cmpliance t the plicy and fr mnitring the perfrmance f the results n a quarterly basis. The Bard f Directrs will appint an Investment Cmmittee t develp the Investment Plicy. The Investment Cmmittee will be respnsible fr investing funds as per the Investment Plicy, prir t an Investment Manager being engaged. The cmmittee is respnsible fr reprting t the bard the perfrmance f the investments n a quarterly basis, accrding t the return bjectives in accrdance with the plicy. The Investment Cmmittee is required t infrm the bard if the cmmittee at any time feels that the perfrmance expectatins cannt be met r that the investment guidelines in the Investment Plicy restrict perfrmance. N part f the Fund will be laned directly t any individual r cmpany. The Investment Cmmittee will recmmend t the bard when it is apprpriate t hire an Investment Manager. The Investment Cmmittee is respnsible fr cnducting a search fr the Investment Manager, as required, and t frward recmmendatin t the bard. The search will be cnducted thrugh a Request fr Prpsal frmat. Prpsals will include: understanding f the requirements f the Investment Manager, applicable investment fees, reprts t be prepared, perfrmance and experience in managing funds, brad investment apprach and services t be ffered. The Investment Manager is required t cmply with the Cde f Ethics and Standards f Prfessinal Cnduct as adpted by the Assciatin fr Investment Management and Research (AIMR). The cmmittee semi-annually will mnitr the perfrmance f the Investment Manager accrding t established criteria, agreed t jintly by the cmmittee and the manager. The Investment Manager will participate in the establishment and the review f the Investment Plicy. The Investment Cmmittee will apprve investment recmmendatins made by the Investment Manager. If a majrity f the cmmittee is nt available, the chair f the cmmittee is authrized t apprve the recmmendatin f the Investment Manager, within the guidelines f the Investment Plicy Statement. 14

15 The Investment Manager is required t: Prvide a review f the Fund s perfrmance as well as expectatins n the ecnmic and financial market utlk and related investment strategies n a quarterly basis t the Investment Cmmittee, such reprt t be presented t the bard by the Chair f the cmmittee. Ntify the Investment Cmmittee prmptly in writing f any significant changes in the plicies, prcedures, persnnel, wnership r any similar areas f the investment firms. Infrm the Investment Cmmittee if the manager at any time feels that the perfrmance expectatins cannt be met r that any guidelines cntained herein restrict perfrmance. Disclse any material interest in any investment r prpsed transactin. Prvide a letter f cmpliance, within 4 weeks at the end f each quarter, detailing and explaining any investment guidelines cntained in the plicy which have been breached and/r cnfirming cmpliance The Investment Plicy Statement will include the fllwing: Overall ttal return bjective, measured n a fur year mving average basis, t achieve a maximum rate f return cnsistent with prudent investments in rder t meet the Spending and Capital Preservatin Plicy guidelines Prvisin f incme fr distributin while addressing the fundatin s administrative fee and the preservatin f capital Cnsideratin f safety f capital, liquidity and lng term capital grwth Identificatin f eligible asset classes, asset allcatin, and apprpriate level f diversificatin Perfrmance benchmarks in each asset class Mnitring: This plicy will be reviewed every three years r when there is a significant change in the capital in the Fund. 15

16 Financial Management 2.02 Investment Plicy Shrt Term and Securities The Treasurer will have the authrity t invest perating and flw thrugh funds, in cmpliance with this plicy. These investments are limited t redeemable investment certificates and mney market mutual funds thrugh the crpratin s banking institutin. There is a requirement t maintain adequate cash in the crpratin s current accunts t meet the current mnth s perating expenses, granting r flw thrugh disbursements. Mnitring: This plicy will be reviewed every three years r when this respnsibility can be delegated t a staff member. 16

17 Financial Management 2.03 Funds, Fund Types and Criteria fr Naming Preamble The fundatin gives individual dnrs, family fundatins, businesses and charitable rganizatins a number f ways t fulfill their philanthrpic bjectives while supprting the well being f ur cmmunity. We believe that by strengthening the gifts, assets and capacity f individuals and grups, we strengthen ur cmmunity. The fundatin specializes in building endwment funds, where the capital is nt encrached, and uses the funds earnings t supprt the ever-changing needs and pprtunities f ur cmmunity. The fundatin has a number f types f funds available fr dnrs. Many f them are pen funds where gifts may be made by any interested cntributr thereby allwing even mdest cntributins t be jined with thers gifts fr maximum charitable benefit. Dnrs may name the fund that they endw fr themselves, a family member, a cmpany r a valued friend. Sme funds have names that cnvey specific gals r purpses, r hld special meaning t the dnr. The criteria fr naming and establishing funds are identified belw in each fund definitin. Funds General Guidelines All funds are pen funds, meaning that any dnr can make a gift at any time, nce the fund is pened. Dnrs t designated and advised funds will be prvided with an annual fund statement, reflecting additins t the funds, administrative and investment fees charged against the funds, grants frm the fund and the determinatin f annual distributable earnings fr the subsequent year. Annual distributins frm the fund will be identified as having cme frm the fund, unless the dnr wishes the distributin t remain annymus. Fund agreements will be required t establish all funds. The bard will apprve templates fr fund agreements fr each type f fund. The bard must apprve any changes t the clauses f these templates. The Bard s legal cunsel will review all fund agreements prir t having the agreement signed by the dnr and the bard. The Bard will pass a reslutin cnfirming the terms f each fund agreement. Fund agreements can be amended during the lifetime f the dnr. Cmmunity Fund This fund will cnsist f dnatins, large and small, frm a variety f surces individuals, crpratins and fundatins. Dnatins t this fund give the fundatin the greatest flexibility t 17

18 respnd t current cmmunity needs thrugh the prvisin f grants t charities. The minimum dnatin t establish a named fund within the Cmmunity Fund is $5,000. Field f Interest Funds These funds wrk much like the Cmmunity Fund, except that dnrs will identify an area f interest that they wuld like t target their supprt (ex. heritage, children and yuth, relief f pverty, educatin, etc.). The dnr empwers the fundatin s Grants Cmmittee t select wrthwhile prjects t supprt. The minimum dnatin t establish a Field f Interest Fund is $25,000. A Named Fund can be established within an existing Field f Interest Fund with a $5,000 dnatin. Dnr Advised Funds Dnr advised funds enable a dnr t have nging participatin in the selectin f charities that will benefit frm their gift. Dnrs can chse this type f fund instead f creating a family trust r private fundatin. Existing fundatins are able t transfer their assets t the fundatin t achieve higher returns r reduce administrative csts while still remaining invlved in allcating grants. A minimum dnatin f $25,000 is required t pen a dnr advised fund. Designated Funds By establishing a designated fund, dnrs have the pprtunity t specify which particular charity r charities they wuld like t supprt in perpetuity. If an rganizatin ceases t exist, the dnr has nt named a successr beneficiary and the dnr is deceased, the fundatin will redirect the funds t a named fund within the Cmmunity Fund. Dnrs are able t establish a designated fund with a minimum dnatin per beneficiary f $10,000. Charitable Organizatin Endwment Funds These funds can be created n behalf f registered charities. The fund allws the charity freedm frm investment respnsibility and gives dnrs the cnfidence f knwing that a permanent fundatin is in place t prfessinally administer the charity s endwment. Once established, the charity will encurage their dnrs t cntribute t their endwment fund. The minimum dnatin t establish this type f fund is $10,000. Emerging Funds By establishing an Emerging Fund, dnrs are able t pen a fund in any f the abve categries with an initial dnatin and a pledge t meet ne f the minimum dnatin levels as described abve within five years f the initial gift. Until such time as the pledge is fulfilled, n distributin will be made frm the Emerging Fund, prvided that the fundatin is still able t fulfill its disbursement quta as determined in its annual T3010. Operating Endwment Fund The purpse f this fund is t ffset the csts f perating the fundatin. Dnrs are able t establish a Named Fund within this fund with a minimum dnatin f $5,000. Flw Thrugh Funds These are nn-endwed fund whereby the funds are received by the fundatin and then prvided t a designated charitable rganizatin n behalf f the dnr(s) circumstances in 18

19 accrdance with regulatins prvided by the Canada Revenue Agency (i.e. by the fiscal year end fllwing the year in which the gift was received). An administrative fee will be charged n these funds. Flw thrugh funds will nly be available fr dnrs wh have established an endwment fund with the fundatin. The bard will cnsider ther instances t create flw thrugh funds n a case-by-case basis where there is a demnstrated advantage t the lng-term grwth f the fundatin. Mnitring: This plicy will be reviewed every three years. 19

20 Financial Management 2.05 Administrative Fee Administrative fees will be charged n all endwed and flw-thrugh funds. This fee will be determined by the Finance Cmmittee and presented t the bard fr apprval. The prvisin f administrative fees will be included in all fund agreements. Dnrs establishing dnr advised, designated and flw-thrugh funds will be infrmed annually f the administrative fee. The administrative fee will be calculated based n the capital and undistributed earnings in each fund as f the beginning f the mnth. Any extrardinary csts assciated with creating a fund will be brn by the dnr, unless previusly agreed t differently by the bard. Mnitring: This plicy will be reviewed every three years. 20

21 Financial Management 2.06 Authrizatin Tw signatures, ne f which is the Treasurer, will be required n all cheques and banking dcuments (nte: make this prvisin cnfirm with yur fundatin s Bylaws). The Bard Chair and Secretary sign all legal dcuments (nte: make this prvisin cnfirm with yur fundatin s Bylaws), nce the bard apprves these dcuments. The Bard Chair, Secretary and Treasurer sign all fund agreements, nce the bard apprves the agreements. The Treasurer signs dnatin receipts. The Treasurer apprves all invices fr payment and mnitrs that invices fall within budget. The Bard Chair must als apprve invices ver $1,000. Mnitring: This plicy will be reviewed every three years r upn hiring an Executive Directr. 21

22 Financial Management 2.07 Dnatin Recrding and Receipting Dnatin receipts will nly be issued nce the gift is the legal prperty f the fundatin. The Treasurer signs dnatin receipts. Receipts will be issued within ne mnth f receipt by the fundatin. Dnatin receipts will include the fllwing infrmatin: Name and address f dnr Name and address f fundatin Date gift was received Fundatin s charitable registratin number Website address f the Canada Revenue Agency Amunt f dnatin Descriptin f dnatin if in-kind (i.e. nn-cash) Written dnr directin must be received in writing fr all gifts held in perpetuity, such directin t include ntice that the gift is held by the fundatin in perpetuity, date f directin (same date f receipt f gift), name f fund within the endwment that the gift is t be directed and that all gifts, nw and in the future, are cvered by the same directin unless the dnr directs therwise. The Treasurer insures that dnr directin is received fr all gifts held in perpetuity. Dnatin receipts fr gifts f securities are based n the value f the securities at the clse f trading n the day in which the wnership is transferred frm the dnr t the fundatin. Supprting dcumentatin in writing must verify this valuatin. One cpy f the dnatin receipt, filed in numerical rder, will be held fr seven years. This can be an electrnic cpy. One cpy f the receipt fr a gift t an established fund, will be kept in the fund file. The permissin f the Canada Revenue Agency must be received befre receipts are dispsed. Dnatin receipts fr special events will be in accrdance regulatins f the Charities Directrate f the Canada Revenue Agency. Mnitring: This plicy will be reviewed every three years. 22

23 Financial Management 2.08 Expense Reimbursement Vlunteers and staff will be reimbursed fr expenses incurred in cnducting the business f the fundatin. The Treasurer, prir t the expense being incurred, must apprve request fr reimbursement. Fr apprved expenses, receipts must accmpany request fr reimbursement. Mileage will be reimbursed at the rate f $0.40 per km. (r whichever rate the bard determines). This rate is reviewed annually and based n (need t determine this it culd be based n the rate used by the United Way r lcal municipality). Meal expenditures incurred n fundatin business will be reimbursed, per persn, based n the fllwing schedule: breakfast $10.00; lunch $15.00; dinner $ Mnitring: This plicy will be reviewed every three years. 23

24 Dnr and Gift Management 3.01 Gift Acceptance Preamble The purpse f this plicy is t prvide guidelines fr the types f utright gifts (i.e. cash, publicly traded securities) and deferred gifts (i.e. bequests, life insurance) that will be accepted by the fundatin. The nature f a charitable gift is that a dnr cannt expect material cnsideratin (i.e. financial benefits r pprtunities) t flw frm a gift. Gifts t the fundatin will be used fr purpses cnsistent with the verall missin f the fundatin. Dnrs establishing funds at the fundatin will be encuraged t discuss a prpsed gift with independent legal and/r tax advisrs. The Bard Chair, Treasurer and Chair f the Asset Develpment Cmmittee are authrized t negtiate gift agreements with prspective dnrs, the clauses f which are based n fund agreement templates previusly apprved by the bard. The fundatin accepts gifts f cash, marketable securities, bequests and life insurance. Gifts f prperty (i.e. real estate, art, jewelry, etc.), gifts f residual value, charitable annuities, and charitable remainder trusts are nt cvered by this plicy. Ptential gifts utside thse defined in this plicy must cme t the Bard fr cnsideratin. The fundatin reserves the right t refuse a gift which in itself r its rigin may be cntrversial. The dnr is required t pay all legal and accunting csts assciated with making a gift. If substantial expenses are incurred by the fundatin in accepting a gift including legal fees, maintenance and dispsitin fees, these expenses may be charged against the fund. The fundatin will discuss this situatin with the dnr prir t accepting the gift. Guidelines fr specific gifts Cash Gifts f cash include Canadian and freign currency, cheques, bank drafts and mney rders. Publicly traded securities The fundatin accepts gifts f publicly traded securities. The Investment Manager has the authrity t scrutinize and accept such a gift in cnsultatin with the Treasurer. If accepted, these securities will be sld immediately upn receipt by the Investment Manager and cnverted t cash. The Investment Manager in cnsultatin with the Treasurer and Chair f the Investment Cmmittee will determine hw these funds are t be used, based n the Investment Plicy (bth lng term and shrt term). Gifts f bequests Dnrs naming the fundatin as a beneficiary f their estate will be encuraged t prvide infrmatin abut their bequests and if willing, t prvide a cpy t the fundatin f that sectin f their will. With permissin, the fundatin will recgnize these dnrs during their lifetime. A fund agreement will be established fr all bequests. 24

25 Gifts f life insurance The fundatin prmtes and accepts gifts f life insurance where the fundatin is the wner and beneficiary, is assigned irrevcably a paid-up plicy, is assigned irrevcably a plicy n which premiums remain t be paid r names the fundatin as a beneficiary. When the fundatin is the wner and beneficiary, the dnr is entitled t a gift receipt fr all premiums paid. When the fundatin is assigned irrevcably a plicy, a dnatin receipt will be issued fr the cash surrender value f the plicy, as f the value at the date f assignment. Mnitring: This plicy will be reviewed every three years, upn hiring staff r upn changes t the Incme Tax Act. 25

26 Dnr and Gift Management 3.04 Dnr Recgnitin and Stewardship The fundatin will publicly acknwledge all dnatins, unless the dnr wishes t remain annymus. A thank yu letter will accmpany all receipts. Dnrs creating funds will als receive a thank yu call frm a member f the Bard f Directrs. Dnrs creating funds will receive cpies f the fundatin s annual reprt. The fundatin des nt publish the amunt f the dnatin, except in circumstances apprved in advance by the dnr. Dnrs creating designated r advised funds will receive an annual fund statement, which will be hand delivered, wherever pssible, by a member f the Bard f Directrs. The fundatin will nt share its dnr list with ther rganizatins. The privacy f dnrs will be respected. Dnr recrds maintained by the fundatin will be kept cnfidential t the extent pssible. Dnrs will have the right t see their dnr recrd and t challenge its accuracy. Mnitring: This plicy will be reviewed every tw years. 26

27 Grant Management 4.01 Disbursement f Funds Preamble This plicy is designed t allw an utflw fr grants while prtecting riginal principal and ensuring fund grwth t sustain purchasing pwer with the rate f inflatin. This plicy determines the amunt f the annual distributin frm the permanent endwment funds in accrdance with the regulatins and guidelines f CRA. The distributins are fr charitable grants and administrative fees. As a general rule, fundatins are required t disburse 3.5% f the average value f assets held during the previus 24 mnths. The Finance Cmmittee recmmends the annual disbursement t the Bard f Directrs at its meeting immediately fllwing the Annual General Meeting. The disbursement will be based n the semi-annual weighted average f the capital fund balance and the fur-year average return n the investments. Mnitring: This plicy will be reviewed every three years, when regulatins change r when there is a significant change in the return n the fundatin s investments. 27

28 Grant Management 4.02 Granting The Grants Cmmittee f the fundatin versees the granting prgram. The Bard apprves the level f grants available n an annual basis, based n the recmmendatins frm the Finance Cmmittee. Fr unrestricted funds the bard als apprves the grant criteria, applicatin frm, deadline, grant assessment prcess and grantees. Grants are available nly t qualified dnees. Nnprfit rganizatins that are nt registered charities are eligible t receive funds nly when wrking in cllabratin with a qualified dnee and a statement attesting the nature f the cllabratin must accmpany the grant request. IN these instances, the qualified dnee is the applicant. Grant recipients are nt required t prepare dnatin receipts t the fundatin in the amunt f the grant. Cmmunity Grants Prgram The Cmmunity Grants Prgram prvides grants with specific and published criteria t qualified dnees. The fundatin will cnsult every three years with the cmmunity t review and revise, if necessary, the criteria with regard t current cmmunity needs and issues. The Bard f Directrs actively prmtes this prgram a minimum f 90 days prir t the deadline. Applicatins will be reviewed by the Grants Cmmittee and assessed against the criteria. Applicatins received after the deadline date will nt be accepted nr assessed. The assessment will be cmpleted within 90 days f receipt f applicatins. The Grants Cmmittee will recmmend t the bard a list f qualified dnees and the amunt f each grant and upn apprval, the Bard will ntify the applicants f its decisin within 30 days. A grant agreement will be created between the fundatin and the recipient. The agreement will stipulate hw the grant is t be used, based n the infrmatin in the grant applicatin. The Chair f the Grants Cmmittee creates the agreement. The bard Chair and a signing fficer f the applicant sign this agreement. The agreement stipulates that 90% f the grant is paid upn signing with the final 10% payable upn receipt by the fundatin f a final grant reprt, the date f which is agreed t mutually. The Treasurer is ntified when the agreement is signed. The Chair f the Grants Cmmittee mnitrs the final reprt dates, fllws up where necessary, apprves the final payment and ntifies the Treasurer that the terms f the grant agreement have been met. The Chair f the Grants Cmmittee ntifies the Bard f Directrs when the terms f the agreement have nt been met and the Bard is respnsible fr determining the apprpriate curse f actin. Grants frm Dnr Designated, Charitable Organizatin and Dnr Advised Funds These grants are disbursed annually within 120 days f the Annual General Meeting. The recipients f these grants are ntified that the grant has cme frm (name) Fund f the (name) Cmmunity Fundatin. A grant acknwledgement frm accmpanies the grant, fr the beneficiary t cnfirm receipt. 28

29 Grants frm Field f Interest Fund The bard will determine the granting prcess fr disbursements frm these fund n a fund by fund basis. Mnitring: This plicy will be reviewed every three years. 29

30 Grant Management 4.03 Spending and Capital Preservatin Plicy Preamble The Fundatin is the steward f endwed funds that were created by gifts frm a number f dnrs. The Earnings n the endwed funds are a surce f incme fr the granting prgram and the administratin f the Fundatin. As these funds are held in perpetuity, the Bard f Directrs recgnizes that the capital in the funds shuld be prtected against the effects f inflatin t preserve as much as pssible the purchasing pwer f the funds (i.e. maintain value f the funds n an inflatin-adjusted basis). The Bard als recgnizes that the Earnings n the endwed funds fluctuate frm year t year. In recgnitin f these fluctuatins and the impact n the annual distributin, there is a need t maintain a reserve f undistributed Earnings. Earnings means all incme frm any cash, interest, cupns, dividends, investments, persnal prperty, realized and unrealized capital gains net f capital lsses, real prperty r ther interests received frm the Dnr r therwise acquired fr the Fund. The annual Administrative and Investment Fees shall be disbursed frm the Earnings f the Fund. Statement Earnings and administrative fees will be allcated t each fund n a mnthly basis, cmmencing in the mnth fllwing that in which the dnatin is received. Earnings will be allcated n a prrated basis, based n the value f the fund in relatin t the ttal value f all endwed funds. The amunt available fr annual distributin will be calculated based n a three (3) year rlling average n the endwment fund calculated as f the fiscal year-end f the Fundatin. At the first meeting fllwing the presentatin f the annual financial statements, the Bard will determine the distributin f the ttal annual earnings n the fund and the prtins f which t be available t: Allcated t Annual Administrative and Investment Fees Spent n Grants Held in reserve as earnings fr future distributin Reinvested back int the capital f each fund based n the balance at the beginning f previus fiscal year. Mnitring: This plicy will be reviewed every three years, when regulatins change r when there is a significant change in the return n the fundatin s investments. 30

31 General 5.01 Special Leadership Initiatives The cmmunity fundatin has multiple rles and respnsibilities fr fund develpment, grantmaking and cmmunity leadership. T be effective, we need t ensure that adequate financial and human resurces are cmmitted t carry ut ur respnsibilities in each area. This plicy recgnizes the need t assess existing and new pprtunities in ur cmmunity with regard t fundatin resurces and strategic pririties. When the fundatin is invited t participate in a cmmunity initiative, the Bard f Directrs must give cnsideratin t the fllwing when making its decisin: Is initiative cnsistent with the fundatin s missin, visin and strategic pririties? Des this initiative advance an pprtunity fr fund develpment r granting? What is the impact n the fundatin s resurces if the fundatin participates in initiative? If initiative requires use f discretinary (unrestricted) funds, wuld such use have a detrimental effect n Cmmunity Grants Prgram? What are the ptential risks and benefits (ex. public relatins, credibility)? Will initiative eventually be weaned frm the fundatin s participatin, and if s, what is the plan? Hw will the success f the initiative be evaluated? Hw urgent is the initiative and what is the timeline? Mnitring: This plicy will be reviewed every five years r when there is a significant change in the fundatin s unrestricted endwed and/r flw thrugh funds. 31