Code of Conduct: Giving and Receiving Gifts

Guidelines: Giving Gifts: 1. A gift can be provided for an employee as an expression of thanks and

acknowledgement. e.g. Retirement or leaving; outstanding service; or for compassionate reasons.

2. The amount spent on the gift would depend on the reason for the acknowledgement. This would be at the Principal’s discretion, but will not exceed $150 without Board approval.

Receiving Gifts: 1. The board may accept or decline gifts from any person. All accepted donations,

bequests and gifts must be recorded as income according to section 68 of the Education Act.

2. Cash donations will be recorded at face value. Donations of goods or services will be recorded at the fair value of those goods or services. In the case of gifted services, if the value is not material then they can be disclosed by a note in the financial statements. For example, if grounds maintenance was achieved through voluntary effort it can be recorded that the work was completed with a stated number of non-waged hours.

3. Restricted donations. Schools receive donations or bequests from individuals or organisations for specific purposes. These purposes may be to create scholarships for pupils, to pay for specific building developments or for any other educational purpose in connection with the school. These gifts can only be used in accordance with the specific purpose stated. Under section 68 (2) of the Education Act, the board is required to hold any bequest or gift received for a specific purpose. It cannot pass any gifts to an entity that it does not have control over. A school may pass a gift to a Trust that it controls and must ensure that the Trust uses the gift for that specific purpose.

4. Bequest. Where a school board is left property under a will (a bequest) and the testator has specified that the property is to be applied for a particular purpose, the testator’s direction creates a Trust in respect of that property. The board will then hold the property on trust and must deal with it according to the terms of the Trust. The Trust must at all times remain under board control.

5. Gifted securities and investments. Schools are limited in their ability to acquire and hold securities and investments under section 73 of the Education Act. If a school is gifted securities or investments it would not have been allowed to acquire under section 73, then section 68 of the Education Act allows the school to hold those gifts for a period that is ‘reasonable in the circumstances’. If a school wants to keep those assets long term then the ministry recommends they seek approval within 12 months of receiving them. In some circumstances a board may receive a gift or bequest where, as a condition of the gift or bequest, it must continue to hold a security in its current form, e.g. the donor or testator specifies that the school should continue to hold the security and fund activities or prizes from any return on that security. In these circumstances, the acceptance of a conditional gift or bequest creates a Trust and section 161(2) of the Crown Entities Act states that the restrictions in section 160 regarding securities do

not apply. The board may therefore continue to hold the gifted or bequeathed security in perpetuity without need to seek approval.

Conclusion: These guidelines are to ensure that appropriate procedures are followed to ensure the lawful management of giving and receiving gifts. Reviewed: 20.11.17