Horizon School Division No. 205, as a registered charity, shall acknowledge gifts, grants and bequests that contribute to the advancement of education and are in the best interests of the Division by issuing official donation receipts in the name of the donor. These receipts may enable the donor to claim federal and provincial or territorial charitable donation tax credits.
According to the Income Tax Act, a gift is a voluntary transfer of property without valuable consideration to the donor.
Generally a gift is made if all three of the conditions listed below are satisfied:
- Some property – usually cash – is transferred by a donor to a registered charity;
- The transfer is voluntary; and
- The transfer is made without expectation of return.
A gift -in-kind refers to a gift of property other than cash such as capital property (including stocks, bonds, land, buildings and equipment) and personal -use property (including listed personal property such as prints, paintings, sculptures, jewelry, rare books, stamps and coins). A gift -in-kind does not include a gift of services.
The value of non-cash gifts will be determined by an independent appraisal (with no relationship to the Division) or the average of three price quotes. If the fair market value of the gift is $1,000 or less, a qualified Division staff member can provide a reasonable appraisal. The cost of appraisal, if any, shall be borne by the Division.
1. The administration of charitable donations shall be carried out under the direction of the Superintendent of Finance Services/CFO .
2. All gifts that are eligible for a charitable donation receipt must:
- Be for a purpose consistent with the mission, vision and values of the Division;
- Be appropriate to the best interest of students;
- Be in support of those programs and initiatives deemed a priority of the Division;
- Not create significant inequity of programs available to students throughout the Division;
- Not obligate the Division to financial support or continuing costs without the Board’s approval;
- Not unreasonably add to staff workload; and
- Not imply or endorse any business or product.
3. The following types of payments cannot be considered as gifts eligible for a charitable donation
- The payment of a basic fee for admission to an event or to a program (such as tuition fees);
- The payment of membership fees that convey the right to attend events, receive literature, receive services or be eligible for entitlements of any material value;
- A payment for a lottery ticket or other chance to win a prize;
- Contributions of services;
- The purchase of goods or services from the Division; and
- The Division may not issue a charitable donation receipt if the donor has directed the Division to give the funds to a specified person or family or to a non-qualified donor
4. All donations received shall be appropriately identified and recorded in the Division’s financial information system.
5. This procedure shall remain in effect only for that period of time that the Division continues to qualify for Canada Revenue Agency tax exempt status as a charitable organization.
6. Official receipts in the format prescribed by Canada Revenue Agency shall be issued by the Division.
7. All approved donations shall be disbursed as directed by the donor. In the case of donations being received without specific instruction for their use, the Director shall decide upon the use of such funds.
Reference: Sections 85, 87, 109, 110, Education Act
Income tax Act
March 7, 2011
Revised October 13, 2017