Operating Guidelines
for the
Purchasing and Development Departments

MISSION AND GOALS

The Purchasing Resources Department and the Development Office recognize they have a common mission, which is to contribute to the financial well being of the University. The Development Office generates additional income through donations and the Purchasing Resources Department obtains the best value in the procurement process. In conducting their respective responsibilities, their activities often bring them into contact with the same business entities for different reasons. In these shared business situations, both departments recognize the importance of maintaining excellent relations and agree to work together to achieve the objectives of both departments, while ensuring that in all activities, McMaster's reputation for fair and ethical dealing is both maintained and enhanced.

OPERATING GUIDELINES

The Purchasing Resources Department and the Development Office agree to the following guidelines:

The tendering process cannot be influenced by donations given in the past, present, or offered in the future

The Purchasing Resources Department should not be involved in the actual fund-raising from suppliers. From time to time, the Purchasing Resources Department may choose to assist the Development Office in securing some Corporate sponsorship for specific University projects.

It is recognized that suppliers may from time to time make promotional or donation offers as part of a request for proposal from Purchasing or as a response to a fund raising-raising request. It is agreed that any such offers will not be considered a factor in the selection of the successful supplier. Any donations or promotional offers received with proposals will only be examined after the contract has been awarded.

DAILY WORKING GUIDELINES

Given the shared relationships with potential donors and suppliers, the Departments agree that they will co-operate by giving the other Department timely access to and understanding of their procedures, client histories when needed, or new operating policies that may affect the other Department.

Purchasing and Development agree that it would be useful to share information on a regular basis:

The Development Department will send consolidated monthly fund-raising appointment schedules for prospects/clients of mutual interest for review by Purchasing Resources. Purchasing Resources will identify any difficult supplier relationships that may surface for the Development staff. The Development Office will share any feedback relating to the Purchasing Department received from a supplier during a fund-raising visit;

The Purchasing Resources Department will provide:

supplier lists with the value of business as requested by the Development Office;

lists of contracts with expiry dates as requested by the Development Office;

tendering timetables and processes for specific lines of business and the appropriate Purchasing contact when a potential donor has requested the information through the Development Office;

changes in the preferred or contracted suppliers who bill the University above $50,000 annually.

Purchasing and Development adhere to and act in accordance with the ethical guidelines of their respective professional organizations. The Purchasing Resources Department at McMaster endorses and follows the Code of Ethics of the Purchasing Management Association of Canada . The Development Office conduct their activities in accordance with the Canadian Association of Gift Planners' Standards of Professional and Ethical Practice.

OFFERS OF GIFTS-IN-KIND

Any offers of goods and services that fall within the purview of the day-to-day operation of the University (e.g. office equipment, leases, research equipment, services such as crediting, financing, banking) that are made to the Development Office, but not to the Library the Museum of Art (as in enhancements to the collection, acquisitions of art, books, etc.), will be discussed with Purchasing to ensure that such a gift will not affect existing purchasing agreements;

A record of all relevant gifts-in-kind will be sent to Purchasing for their Equipment Inventory Control procedures.

CAUSE RELATED MARKETING OFFERS

Cause Related Marketing (CRM) promotions are a common way companies can donate to a charitable cause by offering a portion of the profit per product sold or service used by the University or related community. McMaster University's Alumni Affinity Card program with the Bank of Montreal is the best example on campus. All such initiatives at McMaster University require the approval of the Vice-President (Administration) and the Executive Director, University Advancement.

Both Departments agree that each offer of a CRM promotion will require a meeting of the two Departments to:

determine if any percentage of the promotion should be accepted as a form of donation;

to ensure that such a promotion will not result in increased costs for the University in another product or department;

to review whether this supplier should be dealt with through a competitive bid process or as a "unique" offer.

When the potential supplier has a unique bid or idea, and the competitive process is chosen, both Departments agree that no consideration will be given to the "special offer" in the selection process. If the original supplier is successful, the Development Office will re-initiate discussions of the "offer" with the supplier to determine if any percentage of the promotion can be accepted as a form of donation.

Each "benefit" from a CRM offer will be reviewed jointly by Purchasing Resources and the Development Office to decide if the financial benefit is to be directed towards a fund-raising project or towards the operating budget.

The Departments will make a joint recommendation to the Vice-President, Administration on each CRM offer.

January 8, 1998

Operating Guidelines for the Purchasing and Development Departments

Operating Guidelines
for the
Purchasing and Development Departments