GIFT ACCEPTANCE POLICY AND PROCEDURE

Updated: September 14, 2026

Policy Statement:

The purpose of this policy is to provide guidance to The Yonge Street Mission (YSM) on the issuing of charitable receipts, accepting donations/gifts based on informed decisions, that such gifts are receipted in accordance with the Canada Revenue Agency regulations and guidelines, and that the donor’s intent is adequately documented and appropriately approved.

Guidelines:

All gifts must be compliant with Canada Revenue Agency regulations and other applicable agency guidelines. Gifts must not be accepted if the donor places parameters on the gift such that do not meet YSM’s policies or fit with the fundraising priorities. Ownership of all gifts directed to YSM must be vested in YSM’s fundraising plans. The final decision to accept or decline a gift rests with YSM. The Philanthropy Department is responsible for coordinating fundraising, gift acceptance, gift agreements and recognition. The Donations Processing team within the Philanthropy Department is responsible for gift processing. All gifts to YSM must be processed in coordination between the Finance and Philanthropy Departments.

Charitable gifts that are deemed acceptable will be acknowledged with a charitable receipt as directed by Canada Revenue Agency regulations, and will be used by YSM in accordance with the direction, if any, of the donor.

Pledge Period:

It is recommended that the pledge payment period not exceed five years from the date that a pledge is obtained. The Yonge Street Mission recognizes that there may be special circumstances that justify a longer pledge payment period. Exceptions must be approved by the VP, Philanthropy prior to the pledge being booked.

Procedures:

The VP, Philanthropy or designate will ensure that gifts are given appropriate consideration and will consult the VP, Operations regarding trust agreements, endowed gifts, non-cash gifts and financial arrangements.

Background:

These guidelines will:

  • Ensure that informed decisions are made with respect to acceptance of gifts and that all requirements pursuant to the Income Tax Act and other legislated requirements are met;
  • Ensure that efficient administrative and accounting practices and procedures are followed;
  • Ensure accurate reporting of gifts bestowed to YSM, and
  • Ensure consistent application of policies and procedures when dealing with donors.

Scope:

These guidelines govern the acceptance and financial administration of all types of gifts, including those gifts made from sources such as corporations, associations, churches, service clubs, foundations and individuals, made in support of YSM’s priorities.

Principles of Gift Acceptance:

The following principles will be considered before a gift is solicited and/or received by The Yonge Street mission. The gift should:

  1. Further the mission and objectives of YSM as outlined in the Case for Support and Key Messages.
  2. Not compromise the values of YSM or its programs and services.
  3. Not have any restrictions for use placed on it by the Donor that are incompatible with YSM’s objectives, mission or Canada Revenue Agency.
  4. Not be accepted from any individual or entity involved in illegal business,
  5. Not be accepted if the Donor’s reputation or business activities may have an adverse effect on the reputation of YSM.
  6. Not be accepted if it entails unacceptable financial risk or burden. For example, gifts that are unmarketable, inaccessible, and impractical or may bring liability to YSM.

If YSM, in consultation with the President and CEO, deems that a donor’s wishes do not correspond with the organization’s priorities, the donor will be asked to redirect his or her intended gift. If the donor’s wishes cannot be satisfied within the parameters of YSM’s goals and priorities, the intended gift will be declined with thanks.

Types of Support:

Donors are considered to be individuals, foundations, corporations, associations, or entities that provide funds to YSM in support of its priorities.

The following are types of gifts that will be accepted and will warrant recognition and stewardship consistent with this policy:

1. Outright gifts of cash

2. Restricted cash gifts.

  • Restricted gifts are donations tied to a specific use and not available for the general purposes of the organization
  • Spending of funds is confined to Board approved programs and projects. Each contribution directed toward an approved program or project will be used as restricted with the understanding that when the need for such a program or project has been met, or cannot be completed for any reason as determined by the Board or Organization, the remaining restricted contributions will be used where most needed.
  • YSM encourages donors to give unrestricted gifts so that funds may be used where the need is greatest. From time to time, YSM may receive donations upon which the donor has placed a restriction to its use. In accepting a restricted donation, YSM agrees to honour the restriction, representing to the donor that the donation will be used for the agreed-upon purpose. Restricted donations can be either solicited or unsolicited.
  • No employee or representative of YSM shall make an appeal for, actively solicit, or accept a directed or restricted gift for a specific purpose, program or activity, unless the special purpose and gift are first approved by the VP, Philanthropy.

3. Gifts of life insurance.

  • Proceeds received on an insurance policy as a benefit paid on the death of a donor will be recognized when the gift is realized.
  • Premiums paid periodically by a donor to YSM to maintain a policy where YSM is the named beneficiary will be credited to the organization or if made to a campaign, for the duration of the campaign.
  • Outright gifts of existing policies with accumulated “cash value’ can be credited to the organization (or if campaign, to the campaign) for the amount of the cash value only. The donor is issued a charitable tax receipt for the amount of the cash value.

4. Gifts of publicly traded securities

  • Recognized as a gift at the fair market value of the assets on the day that legal ownership is transferred to YSM.
  • Gifts of publicly traded securities are to be liquidated on receipt by YSM.

5. Bequests by Will

  • Bequests to YSM are recognized at their dollar value in the name of the estate when the funds are received by YSM.
  • Any bequests received by YSM above and beyond that which is budgeted in any current fiscal year will be automatically placed into The Grace and Goodness Trust – an internally restricted fund.

6. Pledges

  • Donors will be recognized for the full amount of their pledge when 50% of the pledge value has been received by YSM. YSM reserves the right to adjust or remove recognition provided to a donor whose pledge has not been honored in full.

7. Gift-in-Kind (GIK)

  • GIK donors will be acknowledged for the “fair market value” of their gift. To be accepted, gifts-in-kind must be accompanied by the paper work, independent appraisal or retail/catalogue pricing documentation satisfactorily establishing the purchase price of the gift.
  • Acceptance of gifts-in-kind requires that there be no cost to YSM associated with these gifts.
  • A charitable tax receipt may be issued if required by the donor and if YSM determines that the gift can be accepted. YSM reserves the right to determine the types of gifts-in-kind it will accept.
  • Gifts of services are not tax receiptable under the Income Tax Act because no property is transferred. Donors may donate a gift of service by charging YSM and donating the proceeds back to YSM. A charitable tax receipt for the outright gift may be issued, but only if payment of the service invoice is not contractually linked to the subsequent outright gift.

GIFT LIMITATIONS

Charitable receipts cannot be provided where:

  • The donor receives any direct personal benefit under the arrangement (Canada Revenue Agency (CRA) Interpretation Bulletin IT-110R3-“Gifts and Official Donation Receipts” does not allow the issue of a tax receipt where the donation is used to confer a benefit of any kind to the donor).
  • The donor has signing authority over the use of the funds
  • The donor stipulates the recipient
  • The use of the funds is restricted to specific individuals
  • Participation in a program or activity is limited to the donor(s) and
  • Proprietary rights entitlement accrues to the donor through the use of the funds.

Should the Canada Revenue Agency (CRA) deem the donor to have received a direct benefit, an individual’s tax credit will be denied.

When conditions placed on a gift offer are judged to be administratively difficult or not in the best interest of YSM, the VP, Philanthropy, in consultation with the President & CEO, may request that the terms of the gift be revised or recommended that the gift be declined. All data base (Raisers Edge) administration will be managed by YSM’s Database and Operations Manager.

PLEDGE COMMUNICATIONS

The Philanthropy Department will communicate with donors regarding their promise to give or intention until either donor fulfillment, donor cancellation or the gift is written off by YSM. The Philanthropy Department will communicate with donors on their pledges primarily through courtesy letters and reminders.

Courtesy Reminders

A courtesy reminder is a stewardship communication provided to donors with scheduled pledge installment payment due during the month. The reminder details the initial pledge, payments to date and outstanding balance.

Donors receive a charitable tax receipt for each pledge installment payment for tax purposes.

Pledge monitoring

At the time the pledge is entered into the database, an installment schedule, based on the number of anticipated payments and the beginning and end date of the pledge, is established. Installment information is used to generate pledge reports to monitor the progress and to identify non-performing pledges.

The Philanthropy Department, in liaison with the Finance Department, is responsible for ensuring the validity of pledges and will cancel, write-off, or modify any non-performing pledge that does not accurately reflect donor obligations or wishes.

Periodically, The VP, Philanthropy will receive a listing of all pledges that are 90 days due to review outstanding donor commitments to communicate with donors regarding delinquent pledges.