Gift Acceptance Policy
To protect the interests of GFA WORLD (hereinafter referred to as the “Organization”) and the persons and entities who support its objects, these policies are designed to ensure that all gifts to, or for the use of, GFA WORLD’s charitable purposes are structured to provide maximum benefit to all parties involved.
Beyond meeting all legal requirements attaching to the acceptance of gifts, donations and gifts shall be assessed by the Organization and its Board of Directors to ensure that their acceptance brings no risk of harm to the reputation of GFA WORLD or causes the Organization to incur financial or other liabilities.
The Organization will not execute a planned or negotiated gift agreement without the advice of legal counsel.
GFA WORLD is committed to the highest ethical standards in its engagement with prospective donors. No finder’s fee or commission shall be paid to anyone as consideration for directing a gift to GFA WORLD. Staff and volunteers shall, in all cases, strongly encourage prospective donors to discuss their proposed gift with their families and seek independent legal and tax advice. GFA WORLD does not act in any capacity as an advisor on any legal, tax, estate or other planning matters.
The goal of this policy is to encourage giving to the Organization without encumbering the Organization with gifts that cost more rather than benefit the Organization. The goal is also to avoid gifts that the donor restricts in a manner inconsistent with goals of the Organization.
All donations are to support the Organization’s charitable objects. Any offer of gift that does not meet this requirement shall not be accepted.
To facilitate the receipts of gifts and bequests, the Organization must be capable of responding quickly and in the affirmative where possible to all gifts offered by prospective donors. Unless stated otherwise, the Board of Directors intends that these policies apply to all gifts.
All donations are subject to this Gift Acceptance Policy and GFA WORLD maintains full control over all funds donated. GFA WORLD will attempt, whenever consistent with our charitable objects and budget, to honour our donors preferences regarding the use of their gifts; however, unless a specific donor designation has been accepted by the Board of Directors, the Organization retains full discretion over the use of funds donated to the Organization.
- The Organization will accept gifts in the form of cash and cheques regardless of amount, unless a question exists as to the legal capacity of the donor to transfer funds.
- Donors shall make all cheques payable to GFA WORLD, and donors shall never make cheques payable to an employee, director, agent, or volunteer for the credit of the Organization.
Publicly Traded Securities
The Organization welcomes and accepts gifts in the form of publicly traded securities. The donor may anticipate that the Organization may immediately sell such securities.
Closely Held Securities
The Organization may only accept closely held securities upon written approval by the Board of Directors. In reaching a decision, the Board of Directors will review closely held securities using the following criteria:
- Is there a readily available market for their disposition?
- Will accepting such securities create any potential liabilities for the Organization?
- Does the closely held entity engages in activities that would be inconsistent with GFA WORLD’s objectives or that could harm the Organization’s reputation?
- Will the closely held security generate unrelated business income taxes (“UBIT”) for the Organization?
GFA WORLD welcomes prospective donors to make charitable contributions in the form of real estate; however, the Organization’s Board of Directors must approve in writing all gifts of real estate in advance of accepting the gift.
- The Organization may require that a licensed appraiser issue an appraisal of the real estate before acceptance. The licensed appraiser shall be at arm’s length from the donor, having no business or other relationship with the donor. The costs of the appraisal shall be borne by the donor.
- The Organization cannot accept any gift of real estate until the Board determines that no environment waste contaminates the property. The Organization may require a Level 1 Environmental Survey. All costs related to the survey will be borne by the donor.
- Special consideration shall be given to the receipt of real estate encumbered by a mortgage, as the administration of such property may give rise to unrelated business income for the Organization, as well as payments, taxes and insurance that may burden the Organization’s finances.
- The Board of Directors may choose to accept royalty interests in oil, gas or other minerals. Before accepting such interests, the Organization shall engage legal counsel and other professional advice, where appropriate, to evaluate whether accepting the gift exposes the Organization to environmental or other liabilities. The Organization shall not accept working interests.
Tangible Personal Property
- Jewelry, artwork, collections, and other personal property shall not be accepted unless the Organization shall have reason to believe the property has a value in excess of $1,000.00. Such property can only be accepted on behalf of the Organization by the Board of Directors or such other person or persons authorized to do so by the Board of Directors.
- No personal property shall be accepted by the Organization unless there is reason to believe the property can be quickly sold. No personal property shall be accepted that obligates the Organization to retain it in perpetuity.
- No perishable property or property which that will require special facilities or security to properly safeguard it will be accepted without prior written approval of the Board of Directors.
- If there is reason to believe personal property has a value of $1,000.00 or more, it may only be accepted after a qualified appraisal has been made and reviewed by the Board of Directors.
Other property of any description including mortgages, notes, copyrights, royalties, easements, whether real or personal, shall only be accepted by further action of the Board of Directors or persons duly acting on the Board’s behalf.
- The Organization shall actively encourage gifts through Wills and Living Trusts.
- In the event of inquiry by a prospective donor, representations as to the acceptability of a bequest to the Organization shall be made in accordance with this Gift Acceptance Policy.
- The Organization shall at all times retain the right to refuse a gift from an individual or from an estate when it is not in the best interest of the Organization to accept the gift.
- When the Organization is the recipient of a gift from a Will or Trust, the Board of Directors shall review the restrictions, if any, upon the gift and determine if it is in the best interests of the Organization to accept the gift. The Board of Directors may appoint a person or persons to review the restrictions and report their findings and recommendations to the Board of Directors for their decision. This report may be given in person, on the phone or over email.
- The Organization will not accept a gift that might result in a conflict of interest, conflict within the Organization, confusion as to the utilization of the gift, or that might create an undue financial burden on the Organization.
- When the Organization receives an unrestricted estate gift, the Board of Directors, or those empowered to act on its behalf, in consultation with the Organization’s President, shall determine its highest and best use at the time. If the Organization has created an Endowment Fund and the unrestricted funds are not needed for the ordinary and everyday expenses of the Organization, priority for unrestricted gifts may be as an addition to the Organization’s Endowment Fund.
Life Estate Gifts
- Donors shall generally not be encouraged to make gifts of a remainder interest in real property in which the donor retains a life estate.
- This policy is based upon the possibility that the donor may need to sell the property in the future and find that the value of the life estate is a small portion of the value of the property. Such gifts may be accepted by the Board of Directors when the asset involved appears to be a minor portion of the donor’s wealth, and the Board of Directors are satisfied that there has been full disclosure to the donor of the possible future ramifications of the transaction.
Gifts of Life Insurance
- GFA WORLD encourages prospective donors to name the Organization as a beneficiary of all or a portion of a person’s life insurance policies.
- The Organization will not, however, agree to accept gifts from donors for the purpose of purchasing life insurance on the donor’s life.
- No insurance products may be endorsed for use in funding gifts to the Organization.
- In no event shall lists of the Organization’s donors be furnished to anyone for the purpose of marketing life insurance for the benefit of donors or the Organization. This policy is based on the fact that this practice represents a potential conflict of interest, may cause donor relations problems, and may subject the Organization to insurance industry regulations should this activity be construed as involvement by the Organization in the marketing of life insurance policies.
- Beneficiary Designations. The Organization welcomes the opportunity to be named as a beneficiary of a prospective donor’s tax-free savings account (TFSA), registered retirement savings plan (RRSP) or registered retirement income fund (RRIF). The Organization encourages all prospective donors to receive independent legal and tax advice before naming GFA WORLD as a beneficiary.
- Trust. The Organization welcomes the opportunity to be named as a beneficiary of donors’ trusts, such as charitable remainder trust (CRTs), charitable lead trusts (CLT’s). The Organization will not serve as a trustee of any trust and encourage donors to use a professional fiduciary.
Designated Gifts and Designated Accounts
Establishing Designated Funds
- The Board of Directors, with input from the Organization's President, will determine what designated accounts may be established.
- Any donor to the Organization may request in writing to the Board of Directors the establishment of a designated account. Once an account is established, the Organization may accept funds into that account.
- The Board of Directors will determine the length of time the account shall exist. When that time has passed, the Board of Directors may either extend the time period for expiration of the account or transfer any remaining funds to the general fund.
Disbursing Designated Funds
- Designated funds may only be spent for the purpose for which they are designated.
- If, at any time, the Organization accepts custody of designated accounts that have not been approved and established by the Board of Directors, and the Organization does not intend to use the designated funds for the purpose designated, the Organization will return those funds to the donor or contact the donor and request permission in writing to transfer the funds to another fund.
GFA World's National Missionary Program
GFA WORLD seeks to provide Christians in the West with the opportunity to participate in sharing the message of Christ’s love among those who have never before heard there is a God who loves them.
GFA WORLD'S NATIONAL MISSIONARY PROGRAM provides for the needs of thousands of brothers and sisters who, after three years of intensive training, have dedicated their lives to taking the message of Christ’s love to those who have never before experienced it.
GFA WORLD welcomes donations to support the National Missionary Program. Donors can choose to donate an amount to the program to make it possible for one national missionary to be fully supported or pledge to make monthly donations to support the program.
GFA World's Child Sponsorship Program
GFA WORLD seeks to provide Christians in the West with the opportunity to minister to the physical needs of children in poverty, as well as to form a lasting relationship with these children.
In order to facilitate the Organization’s work, GFA WORLD has an agency agreement with Believers Eastern Church, which operates the Child Sponsorship Program.
GFA WORLD welcomes donations to support the work carried out on behalf of the Organization by our agent Believers Eastern Church through the Child Sponsorship Program. Donors can provide life-changing assistance and GFA WORLD will facilitate communication between the sponsor and the child.