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Fundraising Policy

Framework for ethical conduct

The Arthritis Society is a registered charity, and the recipient of a variety of outright and deferred gifts. It is the policy of The Society to ensure a strong base of ongoing financial support to The Society by securing donations from a wide range of sources.

Objective:

  • To ensure that the Arthritis Society’s national fundraising policies are in line with best practices as outlined by Imagine Canada’s Ethical Fundraising Code
  • To meet all requirements as outlined by Imagine Canada’s Gift Acceptance Policy.
  • To ensure that The Society’s stakeholders understand our policy regarding the selling, trading and rental policies regarding donor mailing lists.
  • To ensure that The Society’s stakeholders understand what is disclosed to a 3rd party and how the organization benefits from the sale of products or services.
  • To ensure that The Society’s stakeholders understand the organization’s policy regarding face to face fundraising and steps taken to ensure that these standards are met.
  • Fundraising Practices

    Fundraising solicitations on behalf of The Arthritis Society will:

    • Be truthful; and
    • Not make claims that cannot be upheld or are misleading
    • Act with fairness, integrity and in accordance with all applicable laws.
    • Cease contacting a perspective donor who states that he/she does not wish to be contacted in a certain fashion (telephone, mail, email) or limit the number of contacts with the donor.
    • The Arthritis Society does not exploit its beneficiaries. The Society is sensitive in describing those it serves and fairly represent their needs and how these needs will be addressed.
    • Accurately describe the Society’s activities and the intended use of donated funds.
    • Disclose The Society’s name
    • Disclose The Society’s policy with respect to issuing an official income tax receipt including any policy on minimum amounts for which a receipt will be issued
    • Disclose, upon request, whether the individual or entity seeking donations is a volunteer, employee or contracted third party.
    • Review of the relevance and appropriateness of these fundraising policies at least once every 3 years by the National Board
    • Accept donations for purposes that are consistent with the organization’s mission.
    • Regarding compensation The Arthritis Society does not compensate staff or volunteers for contributions based on a percentage of contributions, and are not paid finder’s fees. Staff may accept performance based compensation, such as bonuses, provided they are in accord with prevailing practices within The Arthritis Society and are not based on a percentage of contributions.
  • Responsibility to the Donor:

    While the primary interest of The Arthritis Society is to seek donations to assist in fulfilling its mission, The Society recognizes its ethical responsibility to the donor. Accordingly, all parties acting on behalf of The Society will adhere to the following principles:

    • Conflict of Interest
      In all matters involving the donor, the financial interest and well-being of the donor must take priority. In cases of potential conflict or actual conflict of interest, those acting on behalf of The Society must declare the conflict and allow someone else to act for the organization. A conflict of interest is deemed to occur when individuals who present themselves as representatives of The Society attempt to sell their own product to the donor; however, if the individuals present themselves as representatives of an outside firm and part of their financial counseling involves the arrangement of a gift for The Society, no conflict would exist.
       
    • External Counsel
      The Arthritis Society will encourage donors to seek independent advice to ensure the proposed donation does not significantly (adversely) affect the donor’s financial position, taxable income, or relationship with other family members.
       
    • Limit Communication
      The Arthritis Society honors donors’ and prospective donors’ requests to:
      • Limit the frequency of contact
      • Not be contacted by telephone or other technology
      • Receive printed materials concerning the organization; and
      • Discontinue contact


    • Ethics
      All staff and other individuals acting on behalf of The Arthritis Society will conduct themselves in accordance with accepted professional standards of accuracy, truth and integrity. Compliance with the following codes is the policy of The Arthritis Society as set out by the National Board of Directors of The Arthritis Society:
      1. Ethical Fundraising and Financial Accountability Code (Imagine Canada)
      2. Code of Ethics (Canadian Association of Gift Planners)


    • Tax Receipting
      All donations over $20 will be tax receipted. If the donation is less than $20 the donor must advise The Arthritis Society that they want a tax receipt.
  • Donor Anonymity

    The Arthritis Society will, at the request of donors, maintain anonymity, and to note disclosures that will apply. A donor’s right to anonymity is observed by The Arthritis Society subject, however, to the following necessary limitations:

    1. Records, as required by Revenue Canada for charitable receipting purposes, are maintained by the National Office. Access to these records is restricted to appropriate staff in Development, the Department of Financial Services, and senior executives of The Arthritis Society.
    2. The Society will comply with any legal obligation to disclose the names of donors and the nature and value of their gifts. (For example, obligations that may arise under The Income Tax Act, The Freedom of Information and Protection of Privacy Act or other relevant statutes.)
    3. The identity of a donor requesting anonymity may be provided to the National Board of Directors on an oral basis if the Board so requests. Such information is privileged and neither appears in the minutes of the meeting nor may be used by Board members or officers outside the meeting of the Board.
    4. Prospective donors requesting anonymity are advised by the National Office that their names, and the nature and amounts of their gifts, will be disclosed as above.
  • List Trades and Rentals
    • The Arthritis Society does not rent or sell its donor mailing list to other charities or organizations ever.
    • The Arthritis Society does trade/exchange its donor mailing list with other reputable charities for one time use only. A donor mailing list includes the name and address of the donor only. It does not include any other personal information (e.g. donor’s giving history to The Society).
    • The Arthritis Society does not provide other charitable mailers with the name and address of Society donors who have requested their contact information not be exchanged or traded.
    The following opt-out option is included on every donation reply form we mail to donors: “To reduce costs, we exchange lists with other like charities. The Society does not rent or sell its lists. Please do not exchange my name”.
  • Cause Related Marketing Policy

    When The Arthritis Society enters any formal cause marketing agreement with a third party, The Society will disclose in all related materials it produces, how the organization benefits from the sale of products or services and the minimum or maximum payable under the agreement. If no minimum amount is payable then TAS will disclose this information.

  • Face to Face Fundraising policy

    When The Arthritis Society contracts with a 3rd party for fundraising, the agreement must state under the secrecy section that “The Contractor agrees that it will not, during or at any time after the period of this Agreement, use for itself or others, divulge or convey to others, any information, knowledge, data or proprietary information, in any way obtained by the Contractor during its association with The Arthritis Society or its employees. The Contractor shall use all reasonable effort to protect The Arthritis Society’s interests in Proprietary Information and keep it confidential”.

    The residential campaign manual that is sent to volunteers must state the following:

    1. There is an Arthritis Society identification sticker in your kit. Please wear this at all time when canvassing.
    2. Please treat all Credit Card information with the utmost security ensuring that your canvass kit is kept in a private and secure location until returned to your Area Captain
    3. Please treat all donation and receipt information with complete confidentiality.
    4. In cases where The Arthritis Society is using volunteer Team Captains the communication that goes from The Arthritis Society to Team Captains states: “Please treat all donor and donation information with confidentiality. Store all receipts in a private and secure location until delivered to your Campaign Coordinator”

    Important to note that in addition to a contractor/volunteer nametag provided to canvassers, we also provide each canvasser with an Arthritis Society branded canvasser kit, branded receipt book and branded hand outs.

  • Gift Acceptance Policy

    Purpose

    This policy provides a framework through which the Arthritis Society can accept gifts while ensuring we are operating with the highest integrity, meeting or exceeding legal and legislative requirements, preventing conflicts of interest and proactively managing situations which might lead to perceived or real conflicts of interest, and meeting our ethical and social responsibilities.

    Policy Application and Scope

    This policy applies to all relationships at any level of the organization including but not limited to:

    • corporations;
    • professional organizations;
    • individual donors;
    • industry groups;
    • third-party fundraising aligned with a corporation’s employee groups operating under their corporate banner of corporate foundations;
    • vendors and distributors; and
    • clients of the therapy program.

    From these relationships, the Society may benefit in the following ways:

    • financial support (including donations, sponsorships, foundation grants, corporate matching gifts, volunteer grants, in memoriam donations and employee giving);
    • gift-in-kind (GIK) support (a gift of goods or services);
    • joint relationships or partnerships to raise funds;
    • gifts from vendors.

    Key Principles

    1. The interests of people affected by arthritis are at the centre of all of the Society’s work.
    2. We are committed to forging relationships with individuals, corporations, partners, vendors, and third-party funders that support our work in ways that benefit people affected by arthritis and that in no way inappropriately influence or bias the nature, quality, transparency and/or content of the programs and information we deliver, research we fund, or public policy and advocacy positions we adopt.
    3. We will not explicitly endorse any products or services or practitioners of a commercial nature with the exception of design endorsement for our trademarked “ease of use” program. In the context of corporate sponsorships the sponsor may indicate that they are supporters of the Arthritis Society (cause marketing or ease of use endorsement) but we will not endorse the therapeutic value of the company’s product.
    4. The use of our name and logo (alone or in combination with a co- branded partnership logo) will be granted to corporations relative to the return, as contracted, to the Arthritis Society and the realization of the overall relationship or partnership goals. Use of the Arthritis Society logo and /or slogan and related trademarks must be pre-approved before its use is in the public domain.
    5. The Society will seek to develop and foster relationships with industry and the corporate sector that encourage and support innovation and that help to fund our mission.
    6. The Society will actively seek support from individuals and corporations that will further our ability to achieve our mission, without in any way compromising the transparency and objectivity of our efforts to support, inform, and advocate on behalf of the interests of people with arthritis.
    7. For all programs, information, research, public policy, advocacy, and other activities, the Society will be guided by objective and unbiased sources most credible for the purposes of the activity.
    8. The Society will endeavor to rely on the best available evidence and/or the advice of knowledgeable scientific and medical practitioners in presenting information and to identify that source where practical.
    9. The Society will be transparent in all activities and initiatives and will acknowledge support of sponsors and funders.
    10. While individuals or companies may have a particular interest in specific areas of the Society’s work and may therefore direct funds toward those activities or initiatives, the sponsor or funder cannot direct or influence the content of the information or activity. This includes the use of internal or third-party external market research.

    Restrictions on Gifts

    Many of the Arthritis Society’s fundraising activities are directed towards generating unrestricted funds that enable us to best meet our mission goals. We will accept gifts for specific programs and purposes, provided that such gifts are consistent with our mission strategy. In the event that a gift is restricted to a specific type of activity or initiative, the Society will make reasonable efforts to work with the donor (or executor of the estate in the case of bequests) to ensure that the gift is used in a manner consistent with the donor’s wishes and fulfillment of the mission. The Society will only enter into agreements regarding restricted gifts with the approval of the Chief Development Officer after review with the Chief Operations Officer and CEO.

    In the interests of maintaining the highest ethical standards with regard to conflicts of interest and to ensure that funding sources do not give rise to undue influence or bias, we may choose not to accept any financial or gift in kind contribution.

    Specific Guidelines for Information, Program Content, and Education

    Information, program content and education must be planned to address the needs of people affected by arthritis, their families and caregivers, and must be determined by the appropriate experts of the Society.

    Funding for information, program content and educations events must not be tied to the funder’s influence over program content, choice of speakers, or other aspects of the integrity of our information. Donors must be acknowledged at each event where the funds are used through mention of company/organization name. Exceptions to this policy will be considered at the request of the donor on a case by case basis. Choice of speakers, subjects of presentations, travel arrangements, expenses, and honoraria must all be arranged and paid through the Society or the organizers of the event and not by sponsors or their agents.

    Registration for sponsored events must be through the Society or conference management company and not through a corporation or sponsor’s representative.

    Evidence-based Criteria for Gift Acceptance

    We will not knowingly accept financial or gift-in-kind contributions or enter into a relationship with a company that manufactures any food, unregulated drug product or therapy that claims to treat or prevent arthritis that is not supported by scientific evidence.

    Avoiding Real or Perceived Conflict of Interest

    Adherence to the key principles outlined in this policy is the responsibility of all employees and the accountability of all managers of the Arthritis Society in accordance with the financial limits established by Society policy. It is therefore incumbent upon any employee receiving funds on behalf of the Society to raise any questions to the appropriate level in the organization.

    Disclosure

    All speakers we engage must fully disclose in writing prior to the event to the Society and again at the beginning of the event, any potential conflicts of interest with corporations, including relationships with competing corporations. Potential conflicts include, but are not limited to, partnerships, receipt of consultation fees, membership on advisory boards or speakers’ bureaus, and funding for research.

    Relevant conflicts include those of immediate family members: spouses/partners, children, and parents.

    In presentations, written, and AV materials, the use of generic names for drugs, devices, or other products is preferable to the use of trade names. If a trade name is used, the generic name should also be given and other commonly available alternatives should also be mentioned.

     

    Funding Agreements

    In accordance with our financial and signing authority policies, the Arthritis Society will have a written agreement in place with supporting donors and sponsors. The agreement must recognize the Arthritis Society’s sole responsibility for the identification of needs, determination of objectives, selection of content and speakers (where such are used) and execution of programs and projects and research activities that are supported by the corporation.

    Authority to sign agreements

    The appropriate member of the senior leadership team is authorized to sign or delegate the signing of agreements with all corporation consistent with the overall signing authorities outlined in our finance and operations policies, provided the individual who is signing is aware of and understands requirements under this policy.

    Recognition of support

    The Arthritis Society will acknowledge support by corporations for all sponsored programs and projects. Anyone in any capacity (speakers, researchers, or others working for or in partnership with us) will disclose to the audience any financial relationship they have with corporations. The donor or sponsor must secure advance permission for use of Arthritis Society assets (logo, brand, materials, etc.).

    Privacy and confidentiality

    The Arthritis Society will maintain the privacy and confidentiality of people affected by arthritis as per our Privacy and Confidentiality Policy. Staff and volunteers will not provide company representatives with names and other contact information of people affected by arthritis, including lists of any kind, except where there is express written consent.

    Gifts and honoraria

    The Arthritis Society staff and governance volunteers, who are board directors, officers, and members of board standing committees at any level of the Arthritis Society, shall not accept honoraria of any amount from corporations while acting on behalf of the Arthritis Society. If honoraria are provided to all speakers, the honoraria to the Arthritis Society staff and governance volunteers shall be payable to the Arthritis Society.

    The Arthritis Society staff and governance volunteers may accept reimbursement for direct disbursements required to carry out their duties; however, any potential conflict of interest must be brought to the appropriate manager of the Society or to the Board Chair, in the case of board members, for review.

    Wearing or using corporate materials

    To ensure that the Arthritis Society is not endorsing or perceived to be endorsing any corporation or its products, with the exceptions noted below, staff and volunteers acting on behalf of the Arthritis Society will not wear or use articles bearing corporation names, product names, logos or other insignia that would be seen to be promoting products and services for the treatment of arthritis.

    Exceptions:
    If the corporation is a sponsor of an Arthritis Society event or program, staff and volunteers acting on behalf of the Arthritis Society may wear and/or use the labelled materials in the context of the event or program.

    If the corporation has provided a small number of the item as part of a presentation (eg. folders or pens to participants in a meeting) the staff or volunteers may accept those items as nominal/token gifts from the company for use.

    Corporate displays and materials

    In Canada, certain companies are not allowed by law to advertise drugs directly to consumers except under limited circumstances. Such companies shall not promote their products at any Arthritis Society program or event through displays or materials that include the name of the product. These companies may be sponsors and be offered the opportunity to be recognized in programs, on signage, and through verbal acknowledgement. Only the name of the company can be used, and not the product.

    Monitoring and Compliance

    The Chief Development Officer is responsible for reporting to the President and Chief Executive Officer through the quarterly compliance reports regarding compliance with the Policy.

    Related Policies, Legislation

    This policy provides the ethical framework that allows the Arthritis Society to accept support from individuals and support from corporations. For any donor or sponsor who contravenes our ethical framework, we reserve the right to end funding agreements.

    The Arthritis Society follows federal government legislation and regulations prohibiting direct- to-consumer advertising.

    Fundraising Policy Review

    The National Board of Director’s reviews the Fundraising policies every 3 years to determine the relevance and appropriateness of the organizations policies.

  • Planned giving programme policies and guidelines

    Authorization

    The Arthritis Society (hereinafter "the Charity") is authorized to encourage donors to make both outright and deferred gifts. The types of deferred gifts to be offered include bequests, charitable gift annuities, gifts of residual interests, charitable remainder trusts, gifts of life insurance policies and proceeds, beneficiary designations of retirement plans, and such other gift arrangements as the board of directors (hereinafter "the Board") may from time to time approve.

    Policies

    1. The policy of the Charity is to inform, serve, guide, or otherwise assist donors who wish to support the Charity's activities, but never under any circumstances to pressure or unduly persuade. In particular, whenever a gift involving an irrevocable transfer of assets is under consideration, every effort should be made to ensure that completing the gift would not jeopardize the donor’s personal or financial security.
    2. Persons acting on behalf of the Charity shall in all cases insist that the donor 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.
    3. The chief planned giving offer and chief financial officer are authorized to negotiate planned gift agreements with prospective donors, following programme guidelines approved by the Board. At the Charity, the chief planned giving officer is the Vice President Philanthropic Giving; and the chief financial officer is the Chief Operations Officer.
    4. All planned giving agreements requiring execution by the Charity shall first be reviewed and approved as to form by the chief planned giving officer, and if necessary the Charity's legal counsel. Where substantially the same agreement is used repeatedly, only the prototype needs to be approved.
    5. The following planned gifts must be reviewed and approved prior to acceptance. Before acceptance, relevant information about the property shall be ascertained, including a copy of any appraisal secured by the donor. The Charity also reserves the right to secure its own appraisal before accepting the property and issuing a donation receipt.
      1. Outright gifts of real estate, shares in privately-owned companies, tangible personal property, partnership interests, and other property interests not readily negotiable.
      2. Residual interest gifts.
      3. Charitable remainder trusts.
    6. Outright gifts of cash, listed securities, life insurance, and gift annuities that are in accordance with stated guidelines do not require approval by the Board. Any gift, however, may be referred to the chief planned giving officer for oversight, if subject to possibly unacceptable restrictions.
    7. A reinsured gift annuity (The “Gift Plus Annuity Plan”) is an arrangement under which the donor transfers a certain sum to The Charity subject to a Deed of Agreement which authorizes the charity, acting on the donor’s behalf and working through a life insurance carrier, to arrange for a commercial annuity that would pay the amount stipulated by the agreement and frequency of annuity payments. The Charity will not self-insure gift annuities but may re-insure gift annuities, accepting assets from a donor, pursuant to an agreement authorizing the Charity to: a) use a portion of the assets to purchase a commercial annuity paying a stipulated amount to the donor and/or other annuitant; and
      b) retain the remaining assets for charitable purposes. Gift agreements to be referred to the chief planned giving officer or chief financial officer for review and approval.
    8. The trustee of a charitable remainder trust may be a trust institution, or other qualified trustee, selected by the donor. To assist the donor in selecting the trustee, the Charity may refer donors to trust institutions which are known to provide this service and with which the Charity may have arranged favourable fees.
    9. The following guidelines are established to assure that planned gifts accepted by the Charity will be cost effective.

    Guidelines

    1. Outright Gifts
      1. Description
        An outright gift refers to a contribution of cash or property in which the donor retains no interest and which can be used currently by the Charity. Securing outright gifts is the Charity’s highest priority, and donors who are able to make outright gifts will be encouraged to do so.
      2. Guidelines
        1. The Charity will accept an outright gift of any amount, though gifts to establish a named endowment must meet the minimum funding requirements set by the Board.
        2. The Charity welcomes outright gifts of property as well as cash, but all property other than listed securities and life insurance policies must be approved by the Board before it can be received.
        3. A donor may complete a gift in a single transaction or make a pledge to be paid over whatever period of time is mutually acceptable to the donor and the Charity.


    2. Bequests
      1. Description
        A charitable bequest refers to a disposition in a will to a charity of a particular amount of money, specific property, or a percentage of the residual estate.
      2. Guidelines
        1. Sample bequest language for restricted and unrestricted gifts, (including Endowments upon request), will be made available to donors and their lawyers to ensure that the bequest is properly designated. Donors will also be invited to provide information about their bequest provisions and, if they are willing, to send a copy of that section of their will naming the Charity.
        2. During the administration of estates containing a bequest to the Charity, where issues arise, the Charity works with its local charity network and shares legal counsel, if needed, and where interests align. Exceptional situations will be brought to the chief planned giving officer and the chief financial officer for guidance, direction, and resolution.


    3. Gifts of Retirement Plan Assets
      1. Description
        Many potential supporters of the Charity likely have RRSPs, RRIFs, or other retirement plans, and the value of the assets involved can be considerably more than the donor would ever need during retirement. In some cases it can be appropriate for donors to use these assets to make current outright gifts, whereas in other cases it may be preferable to have retirement plan assets contributed upon death.
      2. Guidelines
        1. The Charity may encourage current outright gifts of assets distributed from retirement plans, provided the donor, upon consultation with his or her professional advisor, determines that he or she can part with such assets without compromising the financial security of his or her retirement years and that the tax consequences are acceptable.
        2. The charity may also encourage beneficiary designations, again provided that the donor, upon consultation with his or her advisor, determines that this is compatible with the overall estate plan.


    4. The Reinsured Gift Annuity
      1. Description
        The gift annuity is a contractual arrangement whereby a donor transfers assets to the Charity pursuant to an agreement authorizing the Charity to purchase a commercial prescribed annuity that will pay the stipulated amount for the life of the annuitant(s) or for a term of years. Assets in excess of the amount required for purchase of the commercial annuity are retained by the Charity and used for purposes specified by the donor and acceptable to the Charity. Determination of the gift receipt and taxation of annuity payments will be in accordance with existing law and instruction from the Canadian Revenue Agency.
      2. Guidelines
        1. The minimum amount the Charity will accept for a reinsured gift annuity is $10,000. (The Charity may require a higher amount.)
        2. The cost of the commercial annuity generally should not exceed 70-75 percent of the assets transferred in order to result in a significant gift for the Charity. In no event, however, shall the cost exceed 80 percent.
        3. The donor may designate the purpose of the gift (amount retained), subject to the consent of the Charity.
        4. The commercial insurance company shall be selected, and the terms of the annuity contract negotiated, by the Charity's chief financial officer or by another person or persons to whom this responsibility is delegated by the Board. Only highly-rated companies shall be selected to reinsure an annuity obligation.

      Gift Agreements subjects to oversight and approval by the chief planned giving officer.

    5. Gift of a Residual Interest
      1. Description
        A gift of a residual interest refers to an arrangement where real property is irrevocably committed to the Charity, but the donor retains use of the property for life or a term of years. For example, the donor might give a residual interest in a residence and continue to live in it. The donor is entitled to a gift receipt from the Charity for the present value of the residual interest.
      2. Guidelines
        The donor shall continue to be responsible for real estate taxes, insurance, utilities, and maintenance after transferring title to the property unless the Charity, upon prior approval of the Planned Gift Acceptance Committee, agrees to assume responsibility for any portion of these items. The Charity’s interest in the property shall be conveyed by deed, and there shall be an agreement that specifies the respective rights and responsibilities of the Charity and of the person(s) for whose benefit the life estate has been retained.

        The Charity reserves the right to inspect the property from time to time to assure that its interest is properly safeguarded.

    6. Charitable Remainder Trusts
      1. Description
        The charitable remainder trust is a form of a residual interest gift. The donor ("settlor") transfers property to a trustee who holds and manages it. The net income will be paid to the donor and/or other named beneficiary. When the trust terminates (either at the death of the beneficiary(ies) or after a term of years), the trust remainder is distributed to the Charity. If the trust is irrevocable, the donor is entitled to a gift receipt for the present value of the residual interest.
      2. Guidelines
        1. A charitable remainder trust may be funded with cash, securities, or real estate. Gifts of the real estate will be subject to a thorough review, as described in the guideline pertaining to real estate, #8 below.
        2. Where the Charity is trustee, it is recommended that the minimum trust size be $100,000 and that beneficiaries be at least 50 years of age. (The Charity may require a higher minimum.) The Planned Gift Acceptance Committee, however, has discretion to make an exception to these recommendations in special circumstances.
        3. If the donor selects an outside trustee, the trust may be funded with any property of any value that is practical and acceptable to the trustee.
        4. The trust agreement shall be either drafted by or reviewed by the donor's own legal counsel. The Charity may make prototype agreements available to the donor's legal advisor, but shall execute no agreement until that person has determined that the trust agreement is in the proper form and that the gift is appropriate for the donor's situation.


    7. Life Insurance
      1. Description
        There are various methods by which a life insurance policy may be contributed to the Charity. A donor may:
        1. Assign irrevocably a paid-up policy to the Charity;
        2. Assign irrevocably a life insurance policy on which premiums remain to be paid; or
        3. Name the Charity as a primary or successor beneficiary of the proceeds.

        When ownership is irrevocably assigned to the Charity, the donor is entitled to a donation receipt for the net cash surrender value (if any) and for any premiums subsequently paid.
      2. Guidelines
        1. Any of these types of life insurance gifts are acceptable to the Charity. In the event a policy is contributed on which premiums remain to be paid, the donor will be encouraged to pay any premiums directly or to make equivalent contributions to the Charity, which can pay the premiums.
        2. The Charity reserves the right to pay premiums, surrender the policy for cash, or elect a reduced paid-up policy.


    8. Gifts of Real Estate
      1. Description
        Gifts of real estate may be made in various ways: outright, through a residual interest in the property, or to fund a charitable remainder trust. The following guidelines pertain to gifts of real estate in general. Where real estate is transferred to a charitable remainder trust, additional requirements of the trustee must be met.
      2. Guidelines
        1. The Charity shall secure a qualified appraisal of the property. The appraiser secured by the Charity may take into consideration any appraisal secured by the donor and may, in some instances, confirm that appraisal, but the Charity shall ultimately rely on its independent appraisal.
        2. A gift receipt will be issued for the appraised value (or present value of the residual interest computed on the appraised value in the case of residual interest gifts) less any advantage received by the donor as a result of the gift.
        3. The Charity shall determine if the donor has clear title to the property.
        4. The Charity shall review other factors, including zoning restrictions, marketability, current use, and cash flow, to ascertain that acceptance of the gift would be in the best interests of the Charity.
        5. The Charity shall ordinarily conduct an environmental assessment, which may include an environmental audit, and accept the property only if (a) it contains no toxic substances, or (b) they are removed or other remedies taken assuring that the Charity assumes no liability or limits its liability to an acceptable level.


    9. Gifts of Shares in Privately-Owned Companies and Other Business Interests
      1. Description
        Donors may make gifts of privately-owned shares and partnership interests. These can be accepted by the Charity so long as the Charity assumes no liability in receiving them and would be subject to no penalties. In some instances the corporation is willing to redeem privately-owned shares, or other stockholders are willing to purchase them.
      2. Guidelines
        1. Privately-owned shares may be accepted if they will not subject the Charity to penalties and can likely be sold in the future to the corporation, to other stockholders, or to others interested in acquiring the corporation.
        2. The Charity shall follow the same appraisal procedure as for real estate, and shall issue a donation receipt based on the appraisal it considers reflective of the value of the shares.


    10. Amendments
      These Policies and Guidelines may be amended at any time by a majority vote of the board.
  • Endowment policies

    The investment objective of The Arthritis Society is to enhance the value of the endowment portfolio and at the same time provide a dependable, increasing source of income, which will be used to support the operating budget of The Society.

    The Arthritis Society is establishing a pure endowment with the intention of spending income only. The Society may prefer to invest some of its funds in a reserve fund where it may expend capital as needed. It can do this with any funds not subject to the ten-year rule under Section 149.1(1)(e)(i) of the Income Tax Act, or even with those funds after the expiration of the ten- year period.

    The portfolio shall include both equities and fixed-income investments. The equities are designed to provide current income, growth of income, and appreciation of principal. The fixed-income investments are intended to provide a predictable and reliable source of interest income while reducing the volatility of the portfolio. Investments will be diversified in order to enhance return and reduce risk.

    Financial Objective

    Total return shall be the method for measuring the performance of the endowment. This refers to the combination of income (interest, dividends, and net rents) and appreciation/depreciation in the fund's value for a certain period of time. The specific financial objective is for total return less expenses and distributions of income to equal or exceed the industry standard benchmark for our asset mix for that period. Real return is a measure of the extent to which total return, less expenses and distributions, exceeds the benchmark. It is recognized that this objective will not be attained every year because of market fluctuations, but it is expected to be attained over a period of time.

    Spending Policy

    Income (interest, dividends and net rents) from the endowment shall be distributed to The Arthritis Society not less often than annually, and such income shall be used for the charitable purposes designated by the donors or, if undesignated, at the discretion of The Society.

    All capital gains, realized and unrealized, shall be allocated to the principal of the endowment, and there shall be no encroachment on this principal except as may be necessary to satisfy the disbursement quota from a capital account.

    Asset Structure

    To facilitate investment and accounting the endowment shall function as a mutual fund. Each individually-named endowed fund shall hold units as part of an investment pool. The initial value of a unit shall be $10.00, and thereafter it will fluctuate with the changing market value of the investments held in the pool. The number of units assigned to each fund shall change only when additions are made, usually by gifts. On the last day of each quarter, the unit value will be determined by dividing the total market value of the endowment pool by the number of units in the pool. On occasion, income may be capitalized and transferred to the principal of a fund.

    When contributions for the endowment are received they shall be temporarily retained by The Arthritis Society in a holding account and added to the endowment on the first day of the following quarter. The number of units assigned shall be determined by dividing the amount of the addition by the unit value as of the end of the immediately preceding quarter.

    The funds within the endowment shall consist of all named funds and the general endowment.

    Investment Management

    The endowment shall be managed by the finance and audit committee of the board, whose responsibilities in the area of investment administration are as follows:

    • To recommend to the board policies for the management of the endowment.
    • To make recommendations to the board on the selection of portfolio managers.
    • In conjunction with the portfolio manager, to determine how assets are to be allocated to ensure investment objectives are achieved.
    • To monitor the portfolio manager’s performance of the endowment portfolio in order to ensure benchmarks are being achieved.
    • To keep the board and executive committee fully informed.

    Asset Allocation

    The monitoring and adjustment of the mix of assets among the investment classes is a major factor in achieving investment return. The finance and audit committee shall carefully review the mix of assets in the endowment and periodically make, or instruct the portfolio managers to make, transfers within prescribed asset class limitations.

    Portfolio Managers

    The board, upon recommendation of the finance and audit committee, may appoint one or more portfolio managers and may allocate endowment assets among them in whatever proportions it deems appropriate based upon the recommendations of our portfolio manager(s).

    Minimums for Designated Endowments

    Any amount may be contributed for the general endowment or for any previously established named endowment.

    The minimum required to establish a named endowment is $25,000, the income from which can be used at the discretion of the Charity unless otherwise designated by the donor.

    Execution of Endowment Agreements

    A named endowment can be established either by a lifetime gift or by bequest. When it is created by a lifetime gift the donor and officers of The Arthritis Society will sign an endowment agreement that sets forth the terms of the endowment. When the donor executes a will containing language directing that a named endowment be established, no other documentation is required.

    Contributions for existing named endowments or for the general endowment require only a transmittal letter or bequest language stating the donor's intention.

  • Philanthropic naming policy

    The Board of Directors of the Arthritis Society has the responsibility for authorizing all naming recognition at the Arthritis Society.

    Naming Recognition/Opportunity

    Definition: A project, program, or other item to be funded that provides an opportunity for a donor to attach a name (theirs or someone else’s) to the project.

    Naming recognition is designed to:

    • Honour the donor or organization by publicly acknowledging their support;
    • Help attract supporters whose example will attract other donors;
    • Remind all Arthritis Society stakeholders of the key role that donors play in the Arthritis
    • Society’s development and growth;
    • Provides visibility and branding for certain areas, making them easily distinguishable to visitors.

    All recognition at the Arthritis Society will comply with:

    • Canada Revenue Agency guidelines; including the guidelines that Corporate logos will not be placed on any donor recognition pieces.
    • The bilingual commitment of the Arthritis Society;
    • Arthritis Society branding guidelines;

    Description of Naming Opportunities:

    Research Program/ProjectMin $100,000
    A research area defined wtihin the Arthritis Society priority programs.
    May be endowed or expendable. Published papers would bear the donor’s name.

    Research InitiativeMin $100,000
    A research area within mission parametres but outside priority programs.
    May be endowed or expendable. Published papers would bear the donor’s name.

    Public SeriesMin $100,000
    A public event, lecture, or series of lectures or events, given by an eminent individual.
    All publicity in connection with the lecture(s) or event(s) would bear the donor’s name. Subject to internal approval.

    Named Endowment FundsMin $25,000
    Established in memory, honour or in tribute of someone special, or named for the Fund’s specific purpose. These funds are designated for a variety of purposes: research, education, patient care, and programs or equipment. Arthritis Society ensures that endowed funds are managed for their intended purpose. See Endowment Guidelines within Planned Giving Policies.

    It is the responsibility of the Board of Directors to ensure that decisions regarding naming recognition of contributions be of lasting value to the Arthritis Society.

    Naming shall not detract from the Arthritis Society’s mission, vision, and values and no such action shall create a conflict of interest or confer special privileges. In the event of changed circumstances, the Arthritis Society reserves the right, on reasonable grounds, to revise the form of or withdraw recognition, in consultation with the donor wherever possible.

    The Arthritis Society reserves the right, in its sole unfettered discretion, to review and terminate permanent donor recognition in the event that the affiliation with the donor’s name becomes inconsistent with the Arthritis Society objectives.

    (For example, a donor’s name could be removed if the entire pledge commitment is not honoured or if the donor is convicted of an indictable criminal offence in Canada, or if a specific circumstance arises that puts the Arthritis Society reputation at risk or in a conflict of interest.)

    All proposals regarding naming opportunities will be finalized by the CEO, who will present the proposal to the Board for final approval.

    Exceptions to this policy must be authorized by the Board of Directors, or by the President & CEO if appointed as the board’s designee for this purpose.