The purpose of this policy is to provide guidance when soliciting restricted gifts or when a request is made by a donor to direct or restrict their donation.


This policy applies to all staff, volunteers, or third parties who fundraise on behalf of Siloam Mission.


Siloam Mission encourages donors to give unrestricted gifts so that funds may be used where the need is greatest. The majority of monetary and near-cash donations received are unrestricted as to their use. From time to time, Siloam Mission may receive donations upon which the donor has placed a restriction as to its use. In accepting a restricted donation, Siloam Mission agrees to honour the restriction, representing to the donor that the donation will be used for the agreed upon purpose. Restricted donations can be either solicited or unsolicited.

No employee or representative of Siloam Mission shall make an appeal for, actively solicit, or accept a directed or restricted gift for a specific purpose, program, or activity, unless the special purpose and gift are first approved by the executive of Siloam Mission.


Term Definition
Restricted Funds Restricted funds are funds tied to a specific use and not available for the general purposes of the organization (for example, a fund consisting of contributions that donors specifically direct the registered charity to use to buy a new building).
Directed Gift A directed gift is a gift made to Siloam Mission with instructions from the donor to use the gift for a specific person or family, or a project that is not under the direction and control of Siloam Mission. A receipt cannot be issued for a directed gift and Siloam Mission will generally not accept gifts of this nature.
Designation A gift with a general direction from the donor that the gift be used in a particular program under the direction and control of Siloam Mission can be accepted and receipted, provided there is no benefit to the donor or anyone not at arm’s length to the donor. Siloam Mission must be able to use the gift within the particular program as it sees fit. Please note that this is a common use of the term designation at Siloam Mission, and that CRA terminology may differ.


Solicited Restricted or Directed Donations

Periodically Siloam Mission will intentionally make an appeal for donations for a specific purpose. The appeal can be for gifts for either operating or capital purposes.

  1. Prior to soliciting restricted use donations, the solicitation effort and the restricted use must be approved by the executive of Siloam Mission
    a. Gifts received in response to the restricted appeal, and directed as such by the donor, must be utilized for the specific purpose intended.
  2.  Should a donor choose to restrict a contribution for use in a particular program or project, we will honour that restriction, with the understanding that, when the need for such a program or project has been met or cannot be completed for any reason as determined by the organization, the remaining contribution will be used where it is most needed, and as approved by the Executive Team.
  3. Unsolicited Restricted or Directed Donations For every appeal for restricted use donations, as noted above, risk exists that the outcome of the appeal may result in a response exceeding the funding requirements for that purpose and that certain directed or restricted donations will not be required to fund the specific purpose. Due to this risk, on all restricted use appeal materials, a statement is included seeking the donors’ agreement that their gift can be utilized by Siloam Mission for any other Executive-approved program. The practice of placing this disclaimer in all materials for specific purpose appeals is required.
  4. By Canadian charitable law, Siloam Mission is unable to refund donations. Based on the law, a gift transfers ownership from the donor to the charity. Once the transfer is made, the charity’s governing documents oblige it to use the gift in carrying out its charitable purposes.


Unsolicited Restricted or Directed Donations

Periodically an employee or representative of Siloam Mission may be approached by a donor with an unsolicited offer of a gift restricted or directed for a specific program or operation.

  1. Prior to accepting an unsolicited gift and agreeing to the acceptance of the restriction, approval must be obtained from the Executive of Siloam Mission. If approved, Siloam Mission will ensure that the gift is utilized in that program in accordance with the restriction of the gift.
  2. Receipt of a restricted gift does not constitute an approved increase in the previously approved capital or operating expense budget for that program year in which the gift was received.
  3. If the donation is designated to increase the scope or frequency of an existing specific activity within a program or to fund the purchase of a previously identified capital need, prior approval from Executive must be obtained. When the designated amount constitutes an approved increase in the previously approved capital or operating expense budget for that program, designated funds must be used in the year the donation was received.
  4. Should a donor offer an unsolicited, restricted gift where the restriction on use requires Siloam Mission to undertake activities beyond the scope of Siloam Mission’s purpose, the gift should be declined. In situations of this nature, every attempt should be made to have the donor expand or remove the restriction so that the gift can be accepted and honoured within the scope of Siloam Mission’s operations.



CRA – Charities and Giving Glossary:

https: www.canada.ca/en/revenue-aaency/services/charities-qiving/charities/charities-qivinq glossary.html

For the purposes of these policies, we have adopted plain language style. Terminology may differ from that of the CRA. Siloam will remain compliant with CRA guidelines.

This policy cannot be changed without approval from Siloam Mission’s Board of Directors and cannot be reproduced and distributed in full or part without written permission of Human Resources.