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G-620-AR: Charitable Donations

References:

  • Income Tax Act
  • C-610-AR Advertising by External Organizations

The division is a registered Canadian charitable organization as defined in the Income Tax Act. This permits the acceptance of donations and gifts-in-kind for which a charitable donation receipt can be issued. Such donations and gifts-in-kind shall be for the advancement of education including, but not limited to:

  • the establishment and/or enhancement of scholarships;
  • the giving of special prizes, or awards to division students;
  • equipment, games, or extra-curricular activities for division students.
  1. A charitable donation is a voluntary transfer of funds or goods made without expectation of return.
  2. The following types of payments cannot be considered as donations eligible for a charitable donation receipt:
    1. payment for which any right, privilege, benefit or advantage may accrue to the donor or to any person specified by the donor.
    2. payment for tuition fees or to purchase the services of staff, tutors, or similar persons.
    3. payment to purchase books or other instructional materials that are normally paid for by way of a fee.
    4. payment for rentals of books, equipment or musical instruments that are normally paid for by way of a fee.
    5. where amounts cannot be identified as having been made by a particular donor.
    6. donations of services.
    7. amounts paid for tickets for parties, social functions, graduations, field trips, or other similar activities.
    8. amounts paid to the division directly from AGLC.
    9. amounts received where in return the donor will receive significant advertising exposure such as the right to issue promotional materials.
  3. The following are the requirements for issuing a charitable donation receipt.
    1. Donations must be for the advancement of education.
    2. Donations must be $25.00 or more.
    3. Donations must be used within the division.
    4. Proposed donations or fund raising projects must be submitted to the principal for approval before any commitment is made to proceed. The following information should be included in the submission:
      1. proposed purpose(s) of funds;
      2. donor's name, address, and postal code, or for business donations, the name of the contact person;
      3. in the case of fund raising projects, a description of the nature of the fund raising project, including anticipated gross amount of money to be raised, date of project, and project supervisor; and
      4. a secondary use for donations if the fundraising goal is exceeded.
    5. The principal shall forward a copy of the above documentation along with their agreement with the proposed use of the donation and instructions for disbursal of funds to the secretary-treasurer.
    6. The secretary-treasurer shall determine the tax-deductible status and advise the principal in writing.
    7. The principal shall provide written approval of the agreed amount and conditions of the donation or fund raising project to the fund raising supervisor or potential donor.
    8. All approved donations received will be forwarded to division office where:
      1. a receipt will be issued and the donation recorded;
      2. a letter of appreciation and a charitable donation receipt in the form prescribed by Revenue Canada will be issued by the secretary-treasurer; and
      3. the funds will be disbursed as directed by the approval documentation.
  4. The only person(s) authorized to issue and sign a charitable donation receipt will be the officers of the board as designated on the annual return filed with Revenue Canada (secretary-treasurer or superintendent of schools).
  5. Any donations or fund raising project may be refused if it is not in the best interests of the education system or is not of a charitable nature.
  6. In the case of donations being received without specific instructions for their use, the superintendent of schools shall decide upon the use of such funds.