Guidelines Relating to Specific Gifts

Gifts of Cash
Cash, cheque, money order or credit card are easily accepted by The Alberta Ballet Foundation.

Gifts in Kind
Gifts in kind are donations of property other than cash. They may include donations of real estate, marketable securities, buildings, equipment, furniture, art or other personal possessions.
Gifts in kind may have unique tax consequences. To ensure that you fully understand the tax consequences of making such a gift, we recommend that you consult with a personal tax advisor prior to making this type of donation.
It is in our mutual interest to ensure that The Alberta Ballet Foundation is fully aware of any additional costs or obligations that might arise in accepting your gift. For this reason, The Alberta Ballet Foundation will consider the appropriateness of accepting gifts in kind on a case by case basis to determine associated costs to the gift before acceptance. Examples of such costs include, but are not limited to, appraisal costs, storage costs, legal costs and disposal costs.
We may have to determine the fair market value of your gift to ensure that we both recognize its true accretive value to The Foundation. This determination will take into account associated costs inherent in accepting the gift. We may have to retain an independent appraiser to determine the fair market value of your gift.
Two common types of gifts in kind are discussed briefly below.

Gifts of Publicly Traded Securities
Publicly traded securities typically include the following:
-   common shares
-   preferred shares
-   mutual funds
-   bond and debentures

Gifts of securities, once received, become an asset of The Alberta Ballet Foundation and our responsibility.  Except under a rare circumstance when the asset may be held, it is our practice to convert these gifts to cash immediately.  Your gift of securities will be valued at the market close of the day it is received into our brokerage account and you will receive a tax receipt based on that amount.

Real Estate
Real estate typically includes a principal residence, commercial property, recreational property or even agricultural property.
We will want to ensure that The Alberta Ballet Foundation has taken into account all the associated costs related to the gift of real estate, including the environmental condition of the lands, liens against the property, ability to sell property, historical designations, etc. before we may accept your gift.

Gifts Through Wills
Gifts through Wills are the most common planned gift and usually take two forms:
1.    Bequest:  A bequest is usually an outright gift of a specified cash amount. Please click here to see sample language to make a bequest to the Alberta Ballet Foundation in your Will.
2.    Residual Interest:  Residual interest is a portion (usually a percentage) of the residue of the estate (amount left over after expenses, taxes and bequests have been paid). Please click here to see sample language to make a residual gift to the Alberta Ballet Foundation in your Will.
We find that it is best that a representative or designate of the Foundation monitor the estate settlement process to make certain your wishes are carried out and in the instance of a residual gift that the value of the gift to the charity is maximized.
We find that it is best if you have discussed your intentions to benefit The Alberta Ballet Foundation with those administering your Will to minimize potential challenges to your Will.

Life Insurance
The Alberta Ballet Foundation is best able to accept gifts of life insurance in two ways:
1.    Existing Policy:  A donor may donate an existing policy by designating The Alberta Ballet Foundation as the owner and beneficiary. The Alberta Ballet Foundation will issue a charitable tax receipt for any cash surrender value of a paid up policy or for any cash surrender value of a partially paid up policy and tax receipts for ongoing premium payments (either lump sum or annual).
2.    New Policy:  A donor may donate a new policy naming The Alberta Ballet Foundation as owner and beneficiary.  The donor will receive tax receipts for the full amount of each annual premium.
The administration of a gift of life insurance will involve a representative of The Alberta Ballet Foundation or designate who will request a copy of the donor’s life insurance policy annually confirming The Alberta Ballet Foundation’s designation as owner and beneficiary.
For a partially paid up policy, the representative or designate will also request annual written notice of premium payments from the donor’s life insurance company.

Trust Agreements
Trusts are agreements where an individual transfers assets to the care of another person (the trustee) for the benefit of a person or organization such as The Alberta Ballet Foundation.

The Alberta Ballet Foundation may accept two types of irrevocable charitable trusts:
1.    Remainder Trust:  This pays the donor income from the assets for a period of time or for life and then the principal is distributed to The Alberta Ballet Foundation.
2.    Residual Trust:  An individual donates an asset, but retains the use of it during their lifetime.
We are not able to provide professional advice to you in connection with the preparation of a trust. We recommend that you obtain independent advice in setting up a trust.
We will designate a representative or designate, sometimes in consultation with our counsel, to represent The Alberta Ballet Foundation during the administration of the trust.
We may need to inspect the subject property from time to time to ensure the assets are being properly administered and will reserve the right to do this when necessary.
As the donor, you are entitled to a tax receipt for the present value of the gift. This is determined by actuarial calculations in accordance with Canada Revenue Agency. We leave the math to the experts.

Charitable Gift Annuities
A gift annuity is an irrevocable transfer of money or other assets to The Alberta Ballet Foundation. A portion of the principal is used to purchase an annuity from an insurance company. The costs of the annuity are based on the donor’s age and income requirements. The remainder of the principal is considered a gift for the purpose specified by the donor. The annuity pays the donor a guaranteed income either for a specified period of time or for the donor’s lifetime. Upon death, The Alberta Ballet Foundation receives any remaining guaranteed income.
We do not provide professional consultation to donors on the purchase of an annuity, and we recommend the donor obtain independent advice.
It is usually best for The Alberta Ballet Foundation to obtain legal advice before agreeing to enter into an annuity agreement with a donor and we will consider what resources are necessary to administer such annuity as part of our consideration of the gift.

Valuation of Gift
To ensure we give you appropriate credit for your gift, we will determine its fair market value or establish that we can determine the same before we accept your generosity.
Gift Designation
Please make all gifts payable to The Alberta Ballet Foundation. Donors may choose to have a gift fully expensed in the year of donation if donated prior to December [30th] of that year, endowed into the future or directed to a specific program or project provided certain legal requirements are met, including:
1.    no benefit accrues to the donor, and
2.    the directed gift does not benefit any person not dealing at arm’s length with the donor.
We would be pleased to discuss what specific program or project you would like to support within those offered at The Alberta Ballet Foundation.
We will discuss any terms of the gift with you and establish a written gift agreement to ensure the terms of your gift are recorded and fulfilled.  We want to ensure that we do not need to further clarify the same at some later date.

Accountability to Donors
We commit to use designated gifts for the purposes for which they are given. Undesignated gifts will be used for the general purposes of The Alberta Ballet Foundation as set out in our Bylaws.

Declining a Gift
While we welcome your generosity, there may be some circumstances where we will unfortunately have to decline your offer of a gift. We will use our discretion to determine whether we are able to accept your gift and will consider the following criteria:
1.    The gift contains unusual features contrary to the objects of The Alberta Ballet Foundation.
2.    The fair market value could not be determined or will result in unwarranted or unacceptable expense to The Alberta Ballet Foundation at the discretion of the Board of Directors.
3.    The gift or terms of the gift are illegal.
4.    The Alberta Ballet Foundation is unable to honour the terms of the gift.
5.    The gift could jeopardize charitable status.
6.    The gift could improperly benefit an individual.
7.    The gift would result in potential cost or liability at the discretion of the Board of Directors.

Gift Acknowledgment and Receipts
We will issue a receipt for all accepted gifts in accordance with the charitable guidelines laid out by the Canada Revenue Agency.

Donor Recognition
All of our donors are valued supporters of Alberta Ballet and the Alberta Ballet Foundation. We appreciate and value each donor’s gift and each gift will be recognized in the ongoing activities of the Foundation and in each playbill the Ballet produces. We will thank and recognize you in ways that are appropriate to the gift received, meaningful to you, and within the guidelines established by Canada Revenue Agency (CRA).  Our relationship with you is very important to us and we want to ensure that we acknowledge your gift in a manner that complements your objectives in making this gift to us.

Our Board of Directors may amend these Gift Guidelines from time to time.


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