Administrative Procedure 526

Donations

Background

The District shall acknowledge donations for the advancement of education within the District by issuing receipts, which may enable the donor to claim the donation as a tax deduction.

Procedures

  1. This Administrative Procedure shall be carried out under the direction of the Associate Superintendent, Business and Finance in consultation with the Superintendent.
  2. All donations which are eligible for income tax deduction must be for the advancement of education specifically:
    1. The establishment of student or staff scholarships, or other awards
    2. The purchasing of capital equipment, furnishings and buildings
    3. Enhancement of co-and/or extracurricular programs
  3. The following types of payments cannot be considered as donations eligible for income tax deduction:
    1. Tuition fees, or other payments for which any right, privilege or advantage may accrue to the donor;
    2. Payments to be used to purchase the services of staff, tutors, or similar persons or to purchase books and other instructional materials which are normally paid for by way of fee or rental;
    3. Instructional materials fees, rentals for books, equipment and musical instruments;
    4. Where amounts cannot be identified as having been made by a particular donor;
    5. Donations of services and/or commodities;
    6. Amounts paid for tickets for bingos, lotteries, social functions, graduations or similar activities.
  4. All donations must be for the enhancement of educational programs within the District, and/or to the benefit of students of the District.
  5. All funds received shall be processed through District Office, specifically identified and appropriately recorded.
  6. Receipts for income tax purposes shall not be issued for donations of less than $25.00.
  7. For the intent of this Administrative Procedure, donations in kind shall have a fair market value established in a manner acceptable to the Associate Superintendent, Business and Finance.
  8. This Administrative Procedure shall remain in effect only for that period of time that District continues to qualify for Revenue Canada tax exempt status as a charitable organization.
  9. Any change to this Administrative Procedure is to be made only after review with Revenue Canada.
  10. All donations received are to be forwarded to the Associate Superintendent, Business and Finance for consideration as a valid donation “for the advancement of education”. Any donation may be refused if, in the opinion of the Associate Superintendent, it is not in the best interest of the education system or is not of a charitable nature.
  11. All proposed uses for the amount to be donated must be submitted to the Associate Superintendent, Business and Finance for his/her approval before any commitment is made to the donor(s).
  12. All approved donations shall be disbursed as directed by the donor for the activity approved “for the advancement of education”, as soon as possible. In the case of donations being received without specific instructions for their use, the District shall decide upon the use of such funds.
  13. Official receipts, in the format prescribed by Revenue Canada, shall be issued by District Office. The only authorized person to sign will be the Associate Superintendent, Business and Finance or designate. A Principal/Supervisor may wish to acknowledge a particular donation in some appropriate manner. This, however, would not constitute an official receipt for tax purposes.

Adopted:

February 14, 2006

Amended:

June 20, 2011, September 16, 2015, September 21, 2016

Reference:

Section 20, 60, 61, 113, 116, 196 School Act

Societies Act

Income Tax Act