Administrative Procedure 522
AP 522 - Income Tax Deductible Charitable Donation Receipts for Donations Received
The division shall acknowledge cash or other donations for the advancements of education within the division by issuing receipts which may enable the donor to claim the donation as a tax deduction.
- The administration of this administrative procedure shall be carried out under the direction of the Secretary Treasurer in consultation with the Superintendent.
- A gift, for purposes of the Income Tax Act, is a voluntary transfer of property without consideration. A registered charity can issue an official donation receipt for a gift it receives if all of the following conditions are met:
- There is a transfer of property to the charity;
- The property is given voluntarily; and
- The donor receives no benefits in return.
- All gifts which are eligible for income tax deduction must be for the advancement of education, specifically:
- The establishment of student or staff scholarships or other awards;
- The purchasing of capital equipment and furnishings; or
- Enhancement of co-curricular and/or extracurricular programs.
- The following types of payments cannot be considered as gifts eligible for income tax deduction:
- Tuition fees or other payments for which any right, privilege, benefit or advantage may accrue to the donor;
- 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;
- Instructional materials fees, rentals for books, equipment and musical instruments;
- Where amounts cannot be identified as having been made by a particular donor;
- Provision of services where, instead of payment for services rendered, the person simply requests an official donation receipt for the value of the services; or
- Amounts paid for activities such as tickets for card parties, bingos, lotteries, social functions, graduations, etc.
- All gifts must be for the enhancement of educational programs within the division and/or to the benefit of students or staff.
- All funds received shall be processed through the division’s regular accounting system, specifically identified and appropriately recorded.
- Receipts for income tax purposes shall be issued for donations of twenty dollars ($20) or more.
- Receipts for income tax purposes should not be issued for non-cash gifts valued at less than fifty dollars ($50). The value of non-cash gifts will be determined by an independent appraisal. The appraiser will be a qualified individual, approved by the division, with no relationship to the division.
- This administrative 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.
- Any substantive changes to this administrative procedure should be made only after review with Canada Revenue Agency.
- All donations received are to be forwarded to the Secretary Treasurer for consideration as a valid donation "for the advancement of education". Any donation may be refused if, in the opinion of the Superintendent, it is not in the best interest of the education system (or does not fit the guidelines specified in this administrative procedure).
- All approved donations shall be disbursed as directed by the donor. In the case of donations being received without specific instructions for their use, the Superintendent or designate shall decide upon the use of such funds.
- Official receipts in the format prescribed by Canada Revenue Agency shall be issued by Central Office. The only authorized person to sign will be the Secretary Treasurer. An Administrator may wish to acknowledge a particular donation in some appropriate manner. This, however, would not constitute an official receipt for tax purposes.
School Act, Section 196
Updated: March 2017