The purpose of this policy is to ensure that Siloam Mission accepts Gift-in-Kind that support its mission, are consistent with its policies and are properly accounted for and acknowledged.
This policy applies to all staff, volunteers or third parties who fundraise on behalf of Siloam Mission.
Gift-in-KindFair Market ValueOpen & Unrestricted MarketActing Independently
Gift-in-Kind is any gift other than cash. Examples are equipment, software, clothing, food, medical equipment, hygiene items, etc.
Fair market value is usually the highest dollar value you can get for your property in an open and unrestricted market and between a willing buyer and a willing seller who are knowledgeable, informed and acting independently of each other. In some situations, the fair market value may have to be determined by a professional appraiser or evaluator.
Fair market value must be determined in the context of an open market; in other words, where there are many sellers and many buyers, all competing to buy and sell goods.
This is also known as acting at arm’s length. It means that neither the buyer nor seller control or influence the other or have any connection that might cause one to treat the other in any way special (for example, marriage or family relationship).
- A significant portion of the goods and services required by Siloam Mission to continue operations are obtained directly from donors. Donations of goods can be divided into two distinct categories – new goods and used goods.
- The Gift-in-Kind donation form must be used by shipping and receiving or any department accepting donated goods. All forms are then given to the GIK Coordinator for processing.
- Single donated items with a value of more than $1,000 that require a tax receipt should have an appraisal done. This does not need to be an outside appraisal but we do need to keep all of the documentation used to determine the valuation including the name of the person doing the valuation. In cases where an outside appraisal is required, a Siloam approved arms-length appraiser will be obtained at the donor’s expense.
- Receipts will be issued following CRA guidelines. For details about issuing receipts, please see the Tax Receipting Procedures Manual. Following are our general policies about issuing receipts.
- Types of Goods Accepted
- Siloam Mission reserves the right to decline any in-kind gift. Generally, the decision to accept or decline a gift (other than what has already been discussed) can be made by the Director of Development or designate. If a gift needs to be returned to a donor, CRA regulations will be followed if a receipt has already been issued.
- When Siloam Mission receives Gift-in-Kind (donated items) that the Mission cannot use, we reserve the right to donate these items to another charitable organization, to use the items in auctions or fundraising events, to liquidate the items for cash to contribute to our annual operations or dispose of them if they have no value.
Food Banks Canada – Guideline for Distributing Food Past the Best before Date
CCSM F135 – The Food Donations Act May 19, 2017
Imagine Canada – Determining the fair market value