Administrative Procedures

Charitable Donations

Business & Finance AP 555

Background

The Division accepts donations from the public to enhance educational opportunities for which general and charitable donation receipts may be issued.

Definitions

a)  Donation: is a gift made by an individual or an organization. They are commonly received in the form of cash but can also take other form (new or used property).

b)  General Receipt: is a written acknowledgment that a specified article or sum of money has been received.

c)  Official Donation Receipt: is an official receipt for income tax purposes issued for certain eligible donations in accordance with the Income Tax Act and its regulations.

Procedures

1. The registered charity shall be regulated by the statutory requirements as set forth by the Charities Directorate of the Canada Revenue Agency.

2. Upon acceptance of a donation, the donation becomes the property of the Division.

3. All donations received as donations eligible for income tax purposes (i.e. receiving official donation receipt) shall be for advancement of education, specifically:

3.1.  The establishment of student and staff scholarships, or other awards;

3.2.  The purchase of capital equipment and furnishings; or

3.3.  The enhancement of co-curricular or extra-curricular programs.

4. All cash donated to the Division shall be receipted, recorded, and accounted for in the appropriate manner including a clear description for which the donation is made.

5. Where a donor places a specific condition on the use of any donation, the Division will endeavour to comply with the wishes of the donor, but reserves the right of final decision over the use of that donation.

6. All requests for an official donation receipt shall be forwarded to the Executive Assistant to the Associate Superintendent of Corporate Supports and Services, accompanied with supporting documentation including a photocopy of the original receipt and the purpose for which the donation is made.

6.1. Official donation receipts will only be issued when the amount of the donation is in excess of one hundred dollars ($100).

7. All new property donated to the Division is to be accompanied with an original sales invoice to determine the value of the donation and shall be approved by the Director of Facilities Services.

7.1.  Schools are responsible for maintaining a record of all non-cash donations.

7.2.  Property that does not meet the Division’s standard or is not compatible with existing equipment shall not be accepted.

7.3.  Donations shall not introduce potential health and safety hazards.

7.4.  The repair and maintenance of donated property are within the responsibility of the site.

8. All used property donated to the Division shall follow the same procedure as section 7 above.

8.1. If an official donation receipt is requested, the donor will provide an independent valuation of the fair market value of the gifted property that is satisfactory to the Director of Financial Services.

9. Contributions of services may not be acknowledged by issue of an official donation receipt.

9.1.  A gift must involve property.

9.2.  Contributions of services (including time, skills, effort, use of equipment) are not property and do not qualify to receive an official donation receipt.

10. The following types of transactions cannot be considered as donations eligible for tax purposes:

10.1.  School and/or fees;

10.2.  Contributions of services;

10.3.  Discounts on goods and services;

10.4.  Sponsorships; or

10.5.  Other payments for which any right, privilege, benefit or advantage may accrue to the donor.

11. The Canada Revenue Agency has special rules for golf tournaments, auctions and similar fundraising events. Principals/Directors shall contact the Director of Financial Services during planning of such events to seek guidance on determination of eligible donation receipt and its value.

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Date Approved:  July 4, 2019

Reference: Education Act: 33, 68, 192, 222
Income Tax Act Society Act

Reviewed or Revised:
Executive: June, 2019

References shall be updated as required and do not require additional approval.