The purpose of this policy is to provide guidance for the acceptance and management of bequests made to the Library.

The Region of Waterloo Library Donation and Bequest Reserve Fund has been established by the Region of Waterloo to receive and hold bequests received by the Library until utilized to support special programs, services or initiatives outside of the annual operating budget. This policy only covers bequests and not donations made by a living person. Donations are included under the Library’s Donations Policy.

Background:
The Region of Waterloo Library relies on many sources of revenue. Planned gifts represent an important aspect of fundraising for the Library. Planned giving to the Region of Waterloo Library also provides library supporters with an opportunity to ensure the long-term success of the Library.

Definition of terms:
Bequest is a specific provision in a will directing a gift of money or property to be paid to the Library. There are several types of bequests accepted by the Library:

1. A specific bequest – A gift of a specific sum of money or a specific property, such as real estate or securities.
2. A residual bequest – A gift of all or a percentage of the residue of the estate after having paid gifts to other beneficiaries under the estate.
3. A contingency bequest – A gift of all or a share of the estate in the event of the prior death of certain other beneficiaries or in the event of certain conditions having been met.
4. A residual bequest subject to life interest – A gift of property following the death of certain other beneficiaries who have use of the property in the estate during their lifetime.

Conflict of Interest means any event, whether actual or perceived, in which the Library or anyone representing the Library may benefit from the knowledge of, or participation in, the acceptance of a gift.

Designated is a type of bequest where a will specifies how a donor wishes their bequest to be allocated.

Fair Market Value is defined by the Canada Revenue Agency as the highest dollar value for a property in an open and unrestricted market and between a willing buyer and a willing seller who are both knowledgeable, informed and acting independently of one another.

Gift is defined by the Canada Revenue Agency as a voluntary transfer of property made without the expectation that any benefit will accrue to the donor, or anyone designated by the donor.

Planned Giving is a way for people to donate to a charity in a way that works well for both the charity and the donor. It involves making donations that fit the donor's personal, financial, and tax needs. Charities use these fundraising programs to attract larger gifts by reaching out to potential donors and offering them helpful information and advice. Some examples of planned giving are leaving money in a will, donating life insurance, or setting up trusts that benefit the charity later on.

Undesignated is a bequest in which a will allows the Library to determine how to allocate the donation, based on the organization’s highest priority needs.

Acceptance of Bequests
The Library reserves the right to accept or decline any bequest, or to negotiate with the estate trustee concerning any aspect of the bequest or willed donation, as allowable by law. Legal services should be consulted regarding any potential change in how the bequest will be used that is different from the willed requirements of the bequest.

Guidelines

The following provides the framework and terms of conditions for the management and use of the Library's Donation and Bequest Reserve Fund:

Administration of Reserve Fund
The Library's Donation and Bequest Reserve Fund will be an interest earning reserve to be administered by the Region's Finance division.

Contributions to Reserve Fund
Non-cash donations raised in any given year shall be converted to cash and transferred to the Donation and Bequest Reserve Fund by the end of that fiscal year, to be invested per the Region’s investment policy. The Taylor and Puddicombe bequests, established prior to the development of this policy, will remain as established in their individual reserve funds.

Allocation of Reserve Funds
Allocation of the reserve fund will be managed in alignment with relevant Region finance and procurement policies.

In keeping with the terms and guidelines documented in the Region of Waterloo Library Donations Policy, the Library welcomes donations and bequests for the purpose of enhancing and enriching programs and services for the residents of the Region of Waterloo.

Where possible, funds will be allocated in accordance with donor wishes as long as they meet the requirements of the Library’s mission, vision, policies, procedures, needs, goals and asset management plans. Library Management will develop a plan to spend designated reserves which will be brought to Library Committee for approval.

Staff will provide the Library Committee with a summary of all disbursements from the Donation and Bequest Reserve, as needed.

The Library may reflect the application of reserve funds to support proposed capital projects, and offset municipal contributions, as part of the Library's annual budget proposal to the Region.

Legal Authority for the Bequest
Staff should take all steps to ensure they are dealing with the authorized estate trustee as designated by the will. Staff should request a copy of the will as well as the Certificate of Appointment of Estate Trustee issued by the court that lists the specific estate trustee. Staff should consult with Legal Services if there are any issues with this confirmation process.

Donor Recognition
Bequests will be credited and recognized when the funds are received.

Donors are encouraged to provide information to the Region of Waterloo Library about their future bequest and, if they are willing, to provide a copy of that section of their will to the Library.

Use of donated funds
Donors may wish to designate their bequest to a specific branch of the Region of Waterloo Library. All undesignated bequests will be directed to a specific purpose where they are most needed.

The Library will commence a planning process to ensure that all bequests are

• used to address the greatest needs of the Library
• adhere to donor intentions, if the donation is designated to a specific location and/or purpose
• used to assist in the advancement of the Library's mission and vision

Large donations may be spent in smaller amounts over several years or deferred for future capital projects, as appropriate.

Privacy
The privacy of donors will be respected in compliance with the Municipal Freedom of Information and Privacy Act of Ontario. The Library does not share, sell or trade donor lists.