Administrative Procedure 516
Income Tax Deductible Receipts for Donations
Wild Rose School Division shall acknowledge donations for the advancement of education within the jurisdiction by issuing receipts which may enable the donor to claim the donation as a tax deduction.
1. The administration of these procedures shall be carried out under the direction of the Secretary-Treasurer in consultation with the Superintendent.
2. All donations which are eligible for income tax deduction must be for the advancement of education, specifically:
2.1 The establishment of student or staff scholarships, or other awards;
2.2 The purchasing of capital equipment and furnishings; or
2.3 Enhancement of co-and/or extra-curricular programs.
3. The following types of payments cannot be considered as donations eligible for income tax deduction:
3.1 Tuition fees, or other payments for which any right, privilege, benefit or advantage may accrue to the donor;
3.2 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;
3.3 Instructional materials fees, rentals for books, equipment and musical instruments;
3.4 Where amounts cannot be identified as having been made by a particular donor;
3.5 Donations of services and/or commodities;
3.6 Amounts paid for tickets for card parties, bingo, lotteries, social functions, graduations or similar activities.
4. All donations must be for the enhancement of educational programs within the Wild Rose School Division , and/or to the benefit of students of the Wild Rose School Division.
5. All funds received shall be processed through the Division’s regular accounting system, specifically identified and appropriately recorded.
6. Receipts for income tax purposes shall not be issued for donations of less than $10.
7. For the intent of this procedure, donations in kind shall have a fair market value established in a manner acceptable to the Secretary Treasurer.
8. These procedures 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.
9. Any changes to these procedures should be made only after review with Canada Revenue Agency.
10. 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 Secretary-Treasurer, 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 Secretary-Treasurer 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 Superintendent shall decide upon the use of such funds.
13. 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.
Reviewed: December, 2011
Next Review by: December, 2016
School Act Section 60, 61
Canada Revenue Agency - Income Tax Act
Policy 11 Delegation