- Provide accurate fundraising materials and other communications to donors and the public.
- Provide timely written acknowledgment of all gifts, including land and conservation agreements, in keeping with Canada Revenue Agency charitable receipting requirements, as appropriate.
- Maintain financial and other systems to document and comply with any donor restrictions on gifts.
- Have a written policy or procedure to ensure donor privacy concerns are honored.
Background
The land trust is accountable to its donors and provides written acknowledgement of gifts as required by law, ensures that donor funds are used as specified, keeps accurate records, honours donor privacy concerns, complies with applicable privacy legislation and advises donors to seek independent legal and financial advice for substantial gifts, whether they be land or monetary gifts.
Strong relationships with donors are crucial for the land trust to secure charitable gifts. Land trusts are accountable to their donors for how donated funds are spent. Thorough recordkeeping practices are integral to donor accountability. This practice includes a reminder that federal law contains requirements to establish the Fair-Market Value of all non- cash gifts with an independent third party appraisal of gifts over $1000. Land trust solicitations must specify for what purpose funds are being raised, and then the funds must be used for that purpose. Likewise, donor-restricted funds must be used for the purposes indicated by the donor. Substantial gifts of cash or other assets can have significant tax and legal consequences for the donor; thus, it is prudent for the land trust to advise potential donors to consult their lawyer and financial advisor when considering such gifts. Some provinces require donations that are solicited for a certain purpose to be held and managed separately from operating and other funds. Land trusts should be aware of any legislation that exists in their jurisdiction.
A Donor Bill of Rights was developed by four professional organizations: the American Association of Fund Raising Counsel (AAFRC), Association for Healthcare Philanthropy (AHP), Council for Advancement and Support of Education (CASE) and the Association of Fundraising Professionals (AFP). It has also been widely endorsed by other professional organizations and individual charities. It is recommended that land trusts develop and adopt a Donor Bill of Rights.