Policy 4.1 - Policy Pertaining to the Acceptance of Gifts of Marketable Securities
The official version of this policy is housed with the University Secretariat. In the event of a discrepancy, the official version will prevail. Click here for a printable version of this policy.
Approving Authority: Board of Governors
Responsible Office: Office of the Vice-President: External
Responsible Officer: Vice-President: External
Original Approval Date: October 26, 2006
Most Recent Revision Date: April 7, 2016
Previous Revisions: N/A
1. Purpose
1.1. To describe the type of marketable securities the University of Guelph (the "University") may accept from a donor.
2. Jurisdiction/Scope
2.1. To describe the conditions under which funds realized from the donation of marketable securities can be disbursed.
3. Definitions
3.1. For the purposes of this Policy, the term "marketable securities" includes, without limitation: government and corporate bonds; equities (including, for example, preferred and common shares); treasury bills; and mutual funds; all subject to the following conditions (as applicable):
3.1.1. As applicable, the security is listed on a major North American exchange and quotations regarding the security are published daily. (The applicability of this criterion to a specific security and whether an exchange is major will be determined by the University in its sole discretion.)
3.1.2. As applicable, the security is actively traded in national or regional over-the-counter markets in North America and quotations regarding the security are published daily. (The applicability of this criterion to a specific security and the sufficiency of the activity of trading of the security will be determined by the University in its sole discretion.)
3.1.3. The security is a share of a mutual fund for which quotations are published on a daily basis, and the penalty for the conversion of such share into cash (or its equivalent) is not excessive (as determined by the University in its sole discretion).
3.1.4. The security is not a share of a privately held company.
3.1.5. The security can be sold for cash (or its equivalent) (as determined by the University in its sole discretion).
3.1.6. The fair market value of the security can be determined as the date of the donation (as determined by the University in its sole discretion).
4. Policy
4.1. The University normally will accept gifts of marketable securities as part of its fundraising activities.
4.2. Funds realized from the donation of marketable securities ("Realized Funds") will be released for disbursement only after the relevant donated marketable securities have been converted into cash (or its equivalent) and after any conditions related to the relevant disbursement have been satisfied (as determined by the University in its sole discretion).
4.3. A key objective, therefore, is to convert donated marketable securities into cash (or its equivalent) as soon as possible.
4.4. Valuation
4.4.1. The charitable tax receipt issued to the donor will reflect the fair market value of the marketable securities on the date the gift is received (physically or electronically) by the University. The amount is based on the market value of the marketable securities at the close of trading that day (which market value will usually be based on the relevant closing price). For marketable securities expressed in U.S. dollars, the exchange rate will be the Bank of Canada US/Canada Closing Rate for the day the shares were valued.
4.4.2. The valuation of the Realized Funds for the purposes of crediting the designation account at the University will normally be the fair market value of the marketable securities on the date the gift is received by the University.
4.5. Transfer and Disposition
4.5.1. It is the University's normal practice to sell the donated marketable securities immediately, once the transfer of beneficial ownership to the University is complete.
5. Relevant Legislation
Not applicable.
6. Related Policies, Procedures & Documents
Not applicable.