Donations from Employees and related Financial Management issues Policy

Overview

Employees at McGill have made significant contributions to many academic, research, student and other program initiatives. University employees often wish (and are encouraged) to donate to help meet the University’s greatest needs, especially so during campaigns.

Donations from employees are subject to the same rules as donations from other donors. It is important to adhere to policy as outlined below to avoid situations, in fact or appearance, where the donor (who is entitled to a tax receipt) is also benefiting from the funds.

For the purposes of this Policy, "employee" collectively refers to academics, researchers, and administrative staff.

Refer to the Procedures for details regarding the implementation and interpretation of the following policies.

Policy

P1. to P4.

P1.
To qualify as a charitable gift, a gift from an employee must meet the same requirements as a gift from any other donor. The amount contributed must be a voluntary transfer of property, any advantage received by the donor must be clearly identified and its value determinable, and there must be clear intent to enrich the University. Reference: Canadian Association of University Business Officers (CAUBO) Income Tax Guide
P2.
A charity receipt will not be issued where the donation is to be used for the donor’s own benefit or the benefit of a person with whom the donor does not deal at arm’s length. Therefore, an employee deriving a direct or indirect benefit from a tax receipted donation contravenes tax legislation and places both the employee and University’s charitable status at risk. It is the responsibility of all McGill parties to avoid situations in fact or appearance where a donor is benefiting from donated funds.
P3.
Gifts may not be credited to a fund set up specifically under the control or for the benefit of the individual donor.
P3.1.
Gifts from Academic staff intended for their research is addressed in the Regulation on Conflict of Interest
P3.2.
Unrestricted gifts from employees should be directed to a faculty’s top academic priorities and greatest needs, as elaborated in their planning documents and aligned with the strategic White Paper. The Dean is typically the Fund Financial Manager. Unrestricted donations must not be directed to a fund where the donor is the signing officer (known as ‘Fund Financial Manager’) nor should the donor be deriving a direct or indirect benefit.
P3.3.
Restricted gifts from employees will be subject to the customary requirements relating to these types of gifts. The spending restriction must be clearly stated and cannot benefit the donor directly or indirectly. Restricted donations must not be directed to a fund where the donor is the signing officer (known as ‘Fund Financial Manager’).
P4.
Gifts-in-Kind are subject to the same procedures.

Procedures

PR1. Administrative Responsibility

Responsibility for the implementation and interpretation of the policy rests with Financial Services. Contact the University Controller’s Office for clarification or advice regarding related matters.

PR2. Glossary of Terms

Fund Financial Manager
Also known as the FFM, Fund Holder or Principal Investigator (in the case of research grants). The academic, researcher, or administrative staff responsible and accountable for the financial operations encompassed by a McGill fund.
Unit Head
The individual responsible for a McGill unit, also deemed to be the 'Organization Financial Manager'; usually the Chairperson or Director of a department or unit, or the Dean of a Faculty.

Regulation on Conflict of Interest

Library and Collections Gifts-in-Kind Policy


Publication Date: April 15, 2009
Revision Date: February 23, 2017 - V 1.4

Related Memorandums, Announcements, and Revision Notes

February 23, 2017 - Version 1.4: Overview section - Added "For the purposes of this Policy, "employee" collectively refers to academics, researchers, and administrative staff."; Replaced the phrase “academic staff and administrative and support staff” with "employee".

January 12, 2017 – Version 1.3: Replaced the labeling convention "G1., G2., etc." in the Procedures section to "PR1., PR2., etc." and added definitions to PR2. Glossary of Terms.

March 16, 2016 – Version 1.2: Replaced the phrase “faculty and staff” with “academic staff and administrative and support staff”.

February 26, 2016 - Version 1.1: Overview section - Replaced the word benefit with receipt; Updated the links in G3. Links to Related Documentation.