The Division shall acknowledge cash or other donations for the advancement of education through scholarships by issuing receipts that may enable the donor to claim the donation as a tax deduction.
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.
1. When a gift is given to the Division for the purposes of offering students a scholarship, the specific terms of the administration of the scholarship will be determined by the donor, the principal, and the Chief Financial Officer. Such details will include the timeline and to what extent the scholarship funds will draw upon the principal as well as the interest generated by the original scholarship gift.
2. When a gift is not accompanied by instructions, it will be administered as an unrestricted gift; that is, it will be used to fulfill the greatest needs of students as determined by the Board and the officers of the Division.
Reference: Sections 85, 87, 109, 110, Education Act
Income Tax Act