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Donor Restricted Charitable Gifts

A donor restricted gift is a gift for a charitable purpose that is subject to certain binding restrictions, conditions, or limitations imposed by the donor, either directly or indirectly. The EFC is committed to complying with these restrictions, except where they are void as being contrary to public policy or where varied by a court order.

Once a donor-restricted charitable gift is accepted, the EFC will be careful to ensure that the funds in question are managed as charitable trust funds. Appropriate management in this regard will be using the following practices:

  1. All gifts will be used for the stated charitable purposes, unless the objects and power clauses of the EFC permit the funds to be subsequently transferred to another charity or purpose. The following statement appears on fundraising material and donation receipts to allow for this action: “All donations support the EFC’s General Fund.” This statement indicates to donors that the General Fund is the only official designation accepted by the EFC. Donors may request that their gift be used for a particular purpose and, the EFC will make every effort to honour the donor’s request, however, the EFC is under no obligation to do so.
  2. Donation of assets received as a result of a gift agreement will be accepted as a trust, managed as outlined in the gift agreement, and used specifically for the purposes stated in the agreement.
  3. Funds received as a result of a gift agreement must be invested in accordance with the specific investment powers set out in the document creating the restricted charitable trust or, if there is no special investment clause, in accordance with the EFC’s general investment powers.
  4. The EFC will not borrow against donor-restricted funds.
  5. For testamentary gifts, the EFC will remain open to maintaining ongoing communications with the testator’s family to provide information and confirmation of compliance with applicable restrictions.
  6. Charitable bequests, assets received as a result of a gift agreement and proceeds realized from the sale of a donor-restricted charitable property will remain impressed with the terms of the trust and shall be accounted for as a special purpose charitable trust fund on a perpetual basis; unless a cy-pres application is approved.

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Donor Restricted Charitable Gifts

General information available from Canada Revenue Agency

   
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