Please see the Donate to the Library page for more information about how to donate to the Kingston Frontenac Public Library
KFPL Statement of Policy
Donations, Sponsorships and Fundraising
Kingston Frontenac Public Library (“the Library”) encourages donations, sponsorships, and fundraising activities that enhance and support value-added services, programs, and resources, including capital enhancements.
The purpose of this policy is to ensure that donations, sponsorships and fundraising activities are pursued, accepted, invested, and used in alignment with the Library’s vision, mission and values, strategic goals, and appropriate legislation.
This policy applies to all donation, sponsorship and fundraising activities associated with the provision of Library services, programs and related assets.
Conflict of Interest means any event (whether actual or perceived) in which the Library, or anyone representing the Library, may benefit from the knowledge of, or participation in, the acceptance of a gift.
Donation means a gift, given voluntarily to the Library as a philanthropic act without expectation or requirement of reciprocal benefit. A designated donation is one that is to be used for a specific purpose. An undesignated donation is one that has no stipulations on use.
Fair Market Value means the highest dollar value you can get for your property in an open and unrestricted market, between a willing buyer and a willing seller who are acting independently of each other.
Fundraising means the legitimate process of collecting money by requesting donations from individuals, groups, foundations, and corporations.
Gift in Kind is a non-monetary gift of property such as artwork, equipment, securities or items of historical/cultural significance. A contribution of service (time, skills, effort) does not qualify as a gift or gift in kind for purposes of issuing an official donation receipt.
Official Charitable Receipt is a statement issued by the Library to donors that includes the business number issued to the Library by the Canada Revenue Agency (CRA), a declaration as to the value of the gift, date of the gift and name of the donor. Receipts are normally accepted by the CRA to support the calculation of the allowable "non-refundable tax credits".
Pledge means a commitment of a gift given over a predetermined time frame.
Sponsorship is a mutually beneficial business exchange between the Library and an external organization (“Sponsor”), whereby the Sponsor contributes funds, products, or in-kind services to the Library in return for recognition, acknowledgement, or other promotional considerations. Sponsorship involves an association between the Sponsor and the Library and/or the specific program, event, services or activity being sponsored. A Sponsorship is a contracted arrangement between the Library and the Sponsor, designed to benefit both parties.
4. Guiding Principles
The Library values and will protect its integrity, autonomy and intellectual freedom, and does not accept gifts when a condition of such acceptance would compromise these fundamental principles.
5. Policy Statement
The Library holds itself to a high standard of ethical conduct, both within its own Board and staff and in all of its external relationships and interactions.
- The Library is a registered charity and follows the rules, regulations, and requirements of the CRA, the Income Tax Act, and other relevant legislation.
- The Library reserves the right, at its absolute discretion, to accept or decline any donation/sponsorship or to negotiate with the donor//sponsor, or representatives, concerning any aspect of the donation/sponsorship.
- The nature of the Library’s decisions, collections, programs, and services will not be influenced by the existence of donations, sponsorships, or fundraising receipts.
- All donations must be free and clear from encumbrances and will become the exclusive property of the Library unless otherwise agreed upon by all parties.
- Acceptance of any donation or sponsorship which involves a proposal to name is conditional on final approval of the naming by the Board.
- Donors are encouraged to discuss the proposed gift with independent legal and/or tax advisors of the donor’s choice so as to ensure that the donor receives a full and accurate explanation of all aspects of the proposed charitable gift.
6.Guidelines for the Acceptance and Use of Gifts/Donations
6.1. Cash Donations
Both designated and undesignated cash donations are welcomed. Undesignated gifts shall be used for such purposes as the Library judges will best advance its mission and priorities. Designated gifts shall be used expressly for the purposes for which they are given, which must be consistent with the Library's mission and priorities.
6.2. Gifts in Kind
Gifts in kind that are added to the Library’s collection or asset inventory will be receipted based on the Fair Market Value (FMV).
- If the FMV is expected to be greater than $1,000, an independent appraisal is required. The donor will generally be responsible for the cost of obtaining an independent appraisal. The Board may authorize payment of valuation costs by exception.
- The Library does not guarantee that collections of items will be kept intact except in special circumstances of historical importance.
6.2.1. Books and Collection Materials
The Library may accept gifts of books, DVDs, music and other materials as long as they are suitable to the needs of the Library. The same selection and deletion principles apply to gifts as to purchases as per the Library’s Collection Development policy.
6.2.2. Art and Valuable Papers/Collections
Gifts of artwork, papers and collections of historic/cultural value related to Kingston-Frontenac are assessed for acceptance as appropriate.
Gifts of property, real estate and tangible property are administered through the office of the Chief Librarian/CEO.
6.2.4. Securities / Publicly Traded Stocks
When gifted securities or publicly traded stocks, the Library reserves the right to sell and manage the funds accordingly. It is the Library’s practice to immediately liquidate securities. The amount of the tax receipt is the value of the security at the closing market price on the day that the asset is transferred to the Library. Gifts of securities will be reviewed by the Chief Librarian/CEO to ensure the securities are marketable and acceptable.
6.2.5. Deferred Gifts including Bequests and Life Insurance
A deferred gift is arranged now but is not available for use by the Library until some future time, usually after the death of the donor. With a deferred gift, a portion or all of a donor’s assets may be designated by bequest to benefit the Library. Such gifts may be made by will or beneficiary designation. Persons interested in making deferred gifts are directed to the office of the Chief Librarian/CEO.
6.3. Refusal of Gift
The Library may refuse the acceptance of a gift if deemed not beneficial to the organization. Donors will be advised accordingly. The Library will decline a gift if any one of the following conditions apply:
- There are conditions to a gift and its designation that are not consistent with the Library’s vision, mission, values and strategic priorities.
- The gift is seeking to unduly influence access to Library business.
- The gift could financially jeopardize the donors and/or the Library.
- The gift or terms are illegal.
- The Library does not have the resources to honour the gift term or determine its value.
- A misrepresentation has been made.
- The gift could jeopardize the Library’s charitable status.
6.4. Returning a Gift to a Donor
As a registered charity, the Library may occasionally be obliged by law to return gifts to donors. This can happen, for instance, when the Library asks the public to contribute to a special project and later events make it impossible to carry out the project. Under certain laws, ownership of the gifted property can revert to the donors if the project becomes impossible to fulfill. In these rare instances, the Library will seek legal counsel before proceeding with a gift return.
The Library may choose to return a gift if any of the conditions outlined in Section 6.3 of this policy should change after a gift has been accepted.
6.5. Power to Vary
Should the intended purpose of a gift be changed, the Library will attempt to contact the donor to discuss the change. If obtaining donor permission is not feasible, the Library will choose a designation that aligns most similarly with the donor’s original intent and carry out all recognition plans as originally discussed with the donor.
7. Guidelines for Sponsorships
Sponsorships involve an association between the sponsor and the Library and/or the specific programme, event, services or activity being sponsored. A sponsorship is a contracted arrangement between the Library and the sponsor, designed to benefit both parties. It is not a philanthropic gift.
- The Library will not agree to sponsorships when a condition of such agreement would compromise its fundamental principles, public service objectives, or confidentiality of patron records.
- The Library will not permit sponsors to have any influence on the policies and practices of the Library or to influence or alter the basic services and collections.
- The Library reserves the right to determine the type of recognition for sponsors.
- Acceptance of any sponsorship which involves a proposal to name is conditional pending a thorough review of the naming, as stipulated in the Naming and Commemoration Policy, and final approval by the Board.
- The Library will take into consideration the anticipated community impact of the sponsorship, particularly when the sponsor’s products or public image may be deemed sensitive.
- While sponsorship involves an association between the sponsor and the Library, the Library will not endorse the sponsor or their products and services. The Library reserves the right to explicitly disclaim endorsement of sponsors.
- Sponsors are required to enter into a written sponsorship agreement, signed by authorized representatives of both parties.
7.1. Sponsorship Agreements
The sponsorship agreement will be in the form of a letter (for sponsorships under $25,000 that do not include any naming rights) or a contract (for those over $25,000 and/or those involving naming rights). The sponsor must agree to acknowledge the mission of the Kingston Frontenac Public Library and have no conflict of interest. The sponsorship agreement will include the following:
- The sponsor must acknowledge that Library policy, planning, collections and presentations rest solely with the Library.
- What the sponsor is contributing and what the value of the contribution represents.
- The obligations of both the sponsor and the Library.
- The disposition and ownership of any assets resulting from the sponsorship.
- Responsibility for the maintenance, insurance and taxes of all assets associated with or resulting from the sponsorship.
- The duration of the sponsorship.
- The licensing and use of the Library’s and the Sponsor’s name, trade and service marks and other intellectual property, and any payment for such licensing and use.
- Where a sponsorship agreement limits the Library’s ability to enter into other sponsorships, the parameters of such an agreement shall clearly define the nature and extent of the exclusivity and the period over which the exclusivity is to be granted.
- A cancellation provision and the remedies available to both parties upon cancellation.
8. Development and Approval of Fundraising Plans
The Library will develop and implement fundraising strategies such as the establishment of endowment funds or capital campaigns for major initiatives such as large-scale renovations or the building of new facilities. Awareness and respect for fundraising endeavours of other charitable organizations in Kingston-Frontenac will help to inform timing and scale of the Library’s fundraising strategies.
All programs, solicitation plans and activities are subject to Board approval.
9. Responsibility to Donors
All Library staff involved in fund development will conduct themselves in accordance with professional standards including accuracy, truth and integrity. The Library will inform, serve, guide and otherwise assist donors who wish to support the Library’s activities but will not pressure or unduly persuade potential and/or current donors. Ethical guidelines and best practices will be followed for fundraising as laid out by the Canadian Centre for Philanthropy, Association for Fundraising Professionals and Imagine Canada.
9.2. Conflict of Interest
Donors will be encouraged to consult a professional advisor of their choice to work with the Library on facilitating a planned gift. In order to avoid a conflict of interest by the Library and its representatives, it is the responsibility of the donor’s advisor to provide advice on tax, legal or financial planning to the donor.
Donors will be encouraged to discuss gift plans with their families or designates.
The Kingston Frontenac Public Library is committed to protecting the privacy of donors and prospective donors. The Library shall maintain donor records, the contents of which shall remain confidential unless the donor agrees otherwise.
All research undertaken by the Library on current and potential donors will be limited to its funding development process and no other purpose. Research methods will respect the individual’s right to privacy and information will be acquired only through publicly available sources.
All undesignated donations will be directed to a specific purpose where they are most needed as deemed fit by the Chief Librarian/CEO or designate. All expenditures of gifts over $50,000 must be approved by the Board.
9.5. Financial Management
Donated funds will be deposited in a trust account in a fund line that best describes the donor’s wishes.
Pledges of $10,000 and over will be accompanied by an agreement signed by the donor and the Chief Librarian/CEO or designate. Pledges may be announced publicly at the shared discretion of the donor and the Library. Expenditures for donor recognition must be appropriately spent as per CRA guidelines and should not exceed more than 10% of the gift amount.
Audited financial reports, inclusive of Annual Registered Charity returns, will be factual and accurate in all material respects. The financial records will be prepared in accordance with the Public Sector Accounting Standards Board (PSAB) and standards established by the Canadian Institute of Chartered Professional Accountants (CPA).
Government grants and contributions will be accounted for separately from donated funds unless the grant is for a matching program.
9.6. Official Donation Receipts
Official receipts for income tax purposes will be issued for gifts, which comply with CRA guidelines. Online donations through CanadaHelps.org will be automatically receipted. For donations made by mail and / or in-person, a tax receipt will be mailed when the accumulated donation by the donor reaches $10 in any calendar year. Official receipts for income tax purposes are not routinely issued to charitable organizations and foundations but may be issued if requested by the donor. Official receipts for income tax purposes are not issued for sponsorships, purchases, or other transactions listed in the Canada Revenue Agency’s Bulletin IT-110R3. These transactions may be acknowledged through issue of a receipt.
10. Related Documents
Naming and Commemoration Policy
11. Document Control
Original policy date: 2023 October
Last Reviewed: 2023 October
Changes made: see report to Board dated November 2, 2023
Next Review: 2027 October