Donations

Donations in Relation to Township Decision-Making Processes

Conditions, contributions, and community benefits may only be requested from an applicant seeking an approval, permit or license from the Township or its agencies, boards or committees if such requests are permitted or required by that decision-making process.

In the case of an applicant seeking an approval, permit or license from the Township or its agencies, boards, or committees, beyond matters permitted or required as part of the decision-making process, voluntary donations from the applicant or their representative may only be requested or accepted at arm's length from the decision-making process:

• Applicants seeking an approval, permit, or license shall not concurrently offer or make voluntary donations to the Township or an agency, board, or committee for community benefits
• Voluntary donations for community benefits shall not be solicited or accepted, for any purpose or community beneficiary, from applicants with a concurrent application for an approval, permit, or license

Voluntary donations for community benefits that fall outside the scope of a planning approval may not be solicited and offers may not be accepted from an applicant or their representative concurrent to a planning approval or from a party proposing to make a planning application.

There is a blackout period in the planning approval processes during which discussions about voluntary donations for community benefits are not permitted and voluntary donations may not be offered, solicited, or accepted. For Councillors and staff, the blackout period commences when they receive information, formally or informally, that an individual, organization, or company has an interest or intent in submitting an application for planning approval. For specific types of planning applications, the end of the blackout period is as follows:

• For official plan amendments, zoning by-law amendments, and combined applications is the date of expiry of the appeal period after Council makes its decision on the by-law(s) and there is no appeal; or, if appealed, is the date the Ontario Land Tribunal (OLT) makes its decision
• For plans of subdivision and condominium is the date of expiry of the appeal period after the Township makes its decision on draft plan approval and there is no appeal; or, if appealed, is the date the Ontario Land Tribunal (OLT) makes its decision
• For site plan control is the date the site plan agreement is executed; or, if appealed, is the date the Ontario Land Tribunal (OLT) makes its decision
• For part lot control exemption by-laws is the date Council adopts or refuses to adopt the by-law
• For minor variance is the date of expiry of the appeal period after the Committee of Adjustment makes its decision and there is no appeal; or, if appealed, is the date the appeal body makes its decision
• For consent to sever is the date of expiry of the appeal period after the Land Division Committee makes its decision and there is no appeal; or, if appealed, is the date the appeal body makes its decision

Voluntary donations for community benefits may not be solicited and offers may not be made by or accepted from a bidder, proponent, or applicant to procurement, or their representative, concurrent to the procurement solicitation and award process.

There is a blackout period in procurement decision-making processes during which discussions about voluntary donations for community benefits are not permitted and voluntary donations may not be offered, solicited, or accepted. The blackout period for procurements commences when the request or call for a bid, quote, proposal, etc. is formally issued, and it ends at the time the procurement is awarded.

The Township shall not accept donations that are conditional upon the endorsement of any product, service, or supplier.

Current and prospective suppliers to the Township that decline solicitations for donations shall not be penalized in procurement decisions of the Township.

No advantage is to accrue to the donor or to any person not dealing at arm's length to the donor as a result of the donation.

Donations cannot confer a personal benefit to any Township employee or Township Official.

Donations that violate Township By-laws or Township policies or the laws, conventions, and treaties of the other orders of government will not be accepted by the Township.

Donors are required to advise the Township if a donation to the Township or an agency, board, or commission of the Township is concurrent with a planning approval or procurement process in which the donor, or the donor's organization or company, is involved.

Qualifying Donations

The Township is a qualified Donee and is authorized by the Canada Revenue Agency (CRA) to issue donation receipts for income tax purposes to qualifying donations. Donations that qualify for an official tax receipt generally include:

• Cash
• Capital, real or depreciable property
• Personal-use property, works of art, jewellery, rare books, stamps, or coins
• A leasehold interest or residual interest in real property
• Donations of life insurance properties
• Donations made under a will

In addition, the donation must meet the following criteria:

• Be an actual transfer of property to the Township
• Be a gift of property
• Be voluntary - freely given and not as a result of a contractual or legal obligation

Only the eligible amount of a donation may be recorded on a donation receipt. If the donor receives any property, services, or another advantage in consideration of his or her donation, the Fair Market Value (FMV) of the Advantage is deducted from the FMV of the gift to determine the Eligible Amount for the purposes of the donation receipt.

Non-Qualifying Donations

The following are examples of non-qualifying donations that cannot be acknowledged with an official donation receipt for income tax purposes in accordance with CRA guidelines:

• Donations that are given to the Township that are intended as a flow through to a specified recipient who does not have charitable organization status
• Intangibles - non-monetary assets without physical substance, such as services, time, skills, effort
• Donations of business marketing products such as supplies and merchandise
• Transfers of cash, property, or assets resulting from a condition, such as a court order, or requirement of the Township's approval process, such as a site plan or subdivision agreement
• Donations for which the Fair Market Value (FMV) of the advantage or consideration provided to the donor exceeds 80% of the value of the donation. If the value of the advantage is greater than 80% of the value of the donation, no gift is deemed to have been made, and a receipt cannot be issued
• The payment of a basic fee for admission to an event or to a program does not qualify as a donation that is eligible for the issuance of a tax receipt. An exception to this rule is for the purchase of a ticket to a fundraising dinner, ball, concert, golf tournament, or like event. In this case, the donation is valued as the difference between the FMV of the food, entertainment, prizes, and the purchase price of the ticket. As per CRA guidelines, the Township will not issue a tax receipt if the total value of the food, entertainment, and prizes exceeds 80% of the purchase price of the ticket
• When a donor requests that the Donee pay for a portion of the donation, no tax receipt will be issued
• When the donor has directed the funds to a specific person or family, no tax receipt will be issued
• Donations that have a direct benefit to the donor or any relative of the donor will not receive a tax receipt
• A Gift-in-Kind for which the FMV cannot be determined

Issuance of Receipts

Upon the confirmation that the donation is in compliance with the Township's policy, the CAO shall issue an "official tax receipt for income tax purposes" and will include all the information specified in Regulation 3501 of the Income Tax Act.

All requests for tax receipts must be accompanied by the appropriate donor and donation information.

Income tax receipts shall be issued for donations of $25.00 or more unless specifically requested by the Donor and approved by the CAO.

The date of the donation is the date the donation is received or the title to the asset transferred. Donations received after December 31^st may not be included in the prior year's donations unless the donation was mailed and is postmarked in the previous year.

Canada Revenue Agency (CRA) ultimately determines the value of the donation which is permitted for a tax deduction.

Associated Costs

At the Township's discretion and determination, the donor is responsible for related costs for all donations, as applicable, and which costs are not eligible for a donation receipt, including:

• Transportation of the donated item, including transfer costs for cash donations
• Cost for an appraisal/valuation of Gifts-in-Kind by an independent, qualified appraiser for donations of Gifts-in-Kind valued above $1,000; Donations of personal property, public art, and real property expected to be valued at $1,000 or less may be appraised by knowledgeable, internal staff in conjunction with the use of online resources suitable to establish a current Fair Market Value (FMV)
• Documentation for insurance purposes, if applicable (i.e. photograph of the item, original sales receipt, appraisal document, certificate of authenticity, etc.)
• Conservation treatment, if applicable (i.e. restoration of artwork, cleaning, repairs, etc.)

Where the Township agrees to incur any of the above costs, these costs will be expensed to the receiving Department.

Acknowledgement of Receipt

A letter of appreciation shall be forwarded to the donor following receipt of the donation and any and all appropriate documentation.

For monetary donations, an official receipt for income tax purposes will be issued for donations of $25.00 or more, provided that the Township confirms that the donation is eligible for an income tax receipt according to CRA guidelines.

Larger donations or donations of cultural significance may be officially recognized at the discretion of the Township, with the agreement of the donor.

Confidentiality of Information

Subject to any applicable legislative disclosure requirements, such as in the Municipal Freedom of Information and Protection of Privacy Act, R.S.O 1990, all information pertaining to donors and donations received by the Township is considered confidential. Charitable giving is normally a personal and sensitive issue. To ensure the privacy of donor information it is necessary to control access to donor and donation information. The Township maintains records of all donors and donations received. A donor may request that his/her gift and/or all information pertaining to that gift remain anonymous.

Charitable Events

The Township may issue charitable receipts for events held by Township-owned or Township-controlled organizations if those organizations meet the criteria in accordance with the Canada Revenue Agency's expanded definition of "municipality".

In order to be considered an organization that is owned by a municipality, the following must apply:

• The municipality must own 90% or more of the shares or capital of the organization; or
• The municipality holds title to the assets of the organization or controls their disposition.

In order to be considered an organization that is controlled by a municipality, the following must apply:

• The municipality appoints more than 50% of the members of the governing body of the organization; and
• The organization must submit its operating budget and, if applicable, capital budget to the municipality for review and approval.

In cases where tickets are sold and the purchaser is to receive an official receipt, the value of the receipt will be the cost of the ticket less the value of any goods or services received. Canada Revenue Agency (CRA) has ruled that the value of a gift must be reduced by the value of the benefit received by the donor.

Fundraising

Sponsorship

Sponsorship occurs when a business makes a donation toward the cost of a Township activity or event and, in return, the Township advertises or promotes the business's brand, products, or services.

It is difficult, if not impossible, to calculate the value of a sponsorships. When the value cannot be calculated, the Township cannot issue the business an official donation receipt. However, the business may be able to include the sponsorship costs in its advertising expenses.

The purpose of the Township's Commemorative Bench and Tree Donation Program is designed as a facilitation tool to assist in celebrating the people, groups, events, and achievements that have brought positive change and difference to our community through planting trees or dedicating park benches. These items will reside in our parks for many years, allowing residents and visitors of the Township to enjoy the natural environment.

Requests for the Commemorative Bench and Tree Donation Program will be accepted by the Township on the Commemorative Bench and Tree form. Forms are available online through the link below or at the Township office.

All applications will be received and approved on a first come first serve basis.

For multiple requests, please fill out the form for each one, as items will be approved on an individual basis.

Donation Purchase

A deposit of 25% will be required at the time of application. Income tax receipts will only be issued upon final payment.

Donation Options

Bench - Parks and Open Spaces:

• Heavy duty construction, anchored to concrete footings and consistent with the Township's parks development standards (to be installed by Township staff)

Bench - Cemeteries:

• High-quality cast iron (black) ends with maintenance-free (hardwood-like) slats. The bench will be anchored on concrete footings (to be installed by Township staff)

Trees - Parks, Open Spaces, and Cemeteries:

• Trees are required to be a minimum 50 - 60 mm caliper tree
• Trees are required to be one of the following species: Silver Maple, Sugar Maple, Red Oak, Bur Oak, Red Maple, Bitternut Hickory, Tulip Tree, or White Oak
• Efforts will be made to accommodate a particular type of native tree species, not indicated on the above list

Copper Plaque:

• Copper plaque with engraved lettering (Approximately 14" x 6")
• Plaque on post for tree donation
• Plaque on the bench for bench donation
• Wording on the plaque to be approved by the Township's Clerk
• Donors must purchase a tree and plaque. The purchase of only a plaque is not allowed.

Fees and Charges

The program will operate on a full-cost recovery basis. Fees and charges for the individual donation options can be found in the Fees By-law.

Location

The Township has parks and facilities available for the donation of trees and benches where they will be well looked after. Not all park areas are suitable for dedicated planting or bench placement. Every effort will be made to comply with the request of the contributor. The Township reserves the right to determine and limit the locations of a bench or tree.

Installation

The planting of trees will be determined by the season; requests received between September and March will be planted in the spring and requests received between April and August will be planted in the fall. Tree(s) will be planted by Township staff to Township standards and specifications.

Benches will be installed by Township staff in the months of June through November to avoid frost conditions. The installation process can take up to 4 months and includes:

• Production and delivery of bench (can take several months and depends on supplies)
• Cement pad to be poured and cured
• Bench installation

General Rules

The Township of Perth South reserves the right to approve or deny any request for a commemorative tree and/or bench.

All items donated to the Township become the property of the Township. Accordingly, the Township will maintain the donated items for their expected life span.

Requests will be reviewed throughout the year and installations shall be scheduled as appropriate for the season and considering operational needs.

In the event that the tree should die, become diseased or be vandalized, the Township will replace the tree with a landscape-size tree of the same species (if available) for a period of three (3) years after the date of installation.

In the event that the donated bench is destroyed, the Township will replace the bench (same style) for a period of three (3) years after the date of installation.

Commemorative benches and trees with an accompanying plaque will be installed by Township staff in the designated area. Benches without a plaque will be located throughout Township parks and open spaces. Optimal tree-planting locations will be selected by Township staff to ensure the most appropriate growing environment for the tree type. Benches and trees will be located to coincide with the general scheme for the park.

After the selection is made and payment has been received in full, the planting/installation of the tree and/or bench and placement of the plaque will take place. Township staff will contact the applicant once the installation is complete.

The Township is responsible for the redevelopment and revitalization of existing parks. The Township retains the right to relocate a donated commemorative tree or bench at any time. If relocation is required, staff will contact the donor to discuss it.

Ashes and other items are not allowed to be placed near or on the trees or benches and any such items will be removed.