Lesson 9

Types of gifts private sector donors may give and how they can pay for them

  1. Sources of donations in the private sector
  2. Private sector funds may come from individuals, businesses, foundations, service clubs and other associations. Foundations may be community foundations, private family foundations or corporate foundations that are the giving arm of companies.

  3. Types of Gifts
  1. Business/Corporations
  2. Businesses may provide gifts for project funding, program funding, start up, pilot projects, equipment and capital costs or facilities or operating costs. In some cases a business may make a pledge that they will pay over two or three years. These gifts generally come in one of the following ways:

    • Charitable Gift: where the business provides a gift of money with no strings attached and they receive a charitable receipt.
    • Sponsorship: where the business receives marketing and PR value in return for a gift of money or in kind product. This is usually given from the marketing budget of the company and because they receive a benefit they do not receive a charitable tax receipt.
    • Gift in Kind: where the business provides a product free of charge and receives a charitable tax receipt for its value.
    • Other: small businesses owners may give a personal gift instead of a company gift
  3. Foundations 
  4. There are three types of foundations:

    • Private Foundations
    • Community Foundations
    • Corporate Foundations

    All three types of foundations may provide cash grants for the following purposes:

    • Capacity Building
    • Project or Programs (not usually renewable)
    • Capital for equipment or facilities

    Tip: To learn more about foundations in Canada click on the following websites.

    Philanthropic Foundations of Canada. To see great grant stories: www.pfc.ca

    Community Foundations of Canada. To see if your city or town has a community foundation go to: www.cfc-fcc.ca/funding/index.cfm

    Foundation Search Canada has some free resources and some you can pay for. Visit: www.foundationsearch.ca/

    Charity Village has lots of info on foundations. Visit : charityvillage.com

    Imagine Canada (formerly the Canadian Centre for Philanthropy) www.imaginecanada.ca

    The US Foundation Centre has a free learning module about Foundations at: http://foundationcenter.org

    Tip: If your archive has revenue under $100,000, then you are eligible to use the Directory Starter Kit. at Imagine Canada www.imaginecanada.ca. This allows you a one time opportunity to get five foundation and five business profiles.

    Otherwise, if you are researching grant opportunities, visit Imagine Canada and sign up for their Canadian Directory to Foundations and Corporations at: www.imaginecanada.ca.

  5. Individuals

Our job as fundraisers for our archive means that we want to make it as easy as possible for individuals to make a charitable gift. Toward that end it is best if you have several ways an individual can pay for their charitable donation. Some of the different ways donors can pay for their gift are:

  • a one time check/cash/money order
  • a one time payment by a credit card or electronic funds transfer
  • quarterly or monthly checks, credit card charges or electronic fund transfer over the period of a year
  • checks, credit cards, or electronic funds transfer over the period of two or three years.

Note on Pledges: When a person says they will contribute $300.00 and wish to pay $100.00 a year that is considered a pledge until it is paid.

Types of Gifts Made by Individuals

There are two types of gifts an individual can make; present gifts and deferred gifts.

  1. Present gifts are gifts that are given in the current time period. Examples of a present gift are:
    • gifts of cash 
    • gifts of property, securities, tangibles
    • gifts of paid up insurance policies
    • gifts of art or antiques
    • gifts of certified cultural property
    • interest free loans & stripped bonds
  2. Deferred Gifts are gifts that the archive will not get right away. Some examples of deferred gifts are:
  • bequests (80% of deferred gifts)
  • life insurance: death proceeds
  • gift annuity
  • charitable remainder trust
  • residual interest in tangibles (home, cottage, art)

Tip: If you have a donor who wants to make a non cash gift to your archive and you are unsure how to handle it, please contact Pat Hardy at pathardy@tunnelwood.com or at 204 944-1139 for advice.