Administrative Procedure

AP-410 — Taxable Receipts for Charitable Donations

Section Four: Business Administration

Effective Date: February 1, 2016 Last Reviewed: October 4, 2021

Background

The Board will accept (from individuals and organizations) donations and/or contributions for the advancement of education of students. Official receipts for Income Tax purposes will be issued for certain donations in accordance with the Income Tax Act and the Board's regulations.

Procedures

General

1. Any donation may be refused if the superintendent or designate determines it would not be in the best interest of the Board to accept it.
2. Where the donation entails a continued financial commitment from a society, group, or individual donor, the terms and conditions of acceptance must be specified in contract and approved by the superintendent or designate.
3. A donation or gift, for the purposes of the Income Tax Act, is a voluntary transfer of property without consideration. The Board of Education can issue an official donation receipt for a gift it receives when all of the following conditions are met:
   1. there is a transfer of property to the Division;
   2. the property is given voluntarily; and
   3. the donor receives no benefit in return, except for the subsequent tax benefit.
4. All donations become property of the Board.
5. Equipment purchased for a specific school normally remains at the school.
6. The Board is rebated 68% of the GST that it pays out; this rebate is not available to school groups and other organizations. As such, parent groups, individuals, or organizations wishing to make a large donation (e.g. playground equipment, sporting goods) may wish to go through the Board.
7. All donations of equipment that may present a safety concern, or involve ongoing costs to the division, must be approved by the superintendent or designate prior to acceptance.

Money Donations

1. Money donations will be accepted and cheques shall be made payable to Grasslands School Division. Money donations in the amount of $25.00 or more made on behalf of an individual school, or for the system as a whole, will be accepted and tax deductible receipts will be issued for:
   1. The establishment and/or promotion of scholarships and bursaries.
   2. The giving of prizes, exhibitions, or rewards to the students of the Grasslands School Division.
   3. The educational advancement of the Grasslands School Division students.
   4. The support of athletic and extra-curricular activities for students of the Grasslands School Division.
   5. The purchase of equipment.
2. All money donations received are to be forwarded to the Associate Superintendent, Business Services for deposit into a Divisional account.
3. All money donations received shall be processed by the Associate Superintendent, Business Services, specifically identified and appropriately recorded through the regular accounting system.
4. All money donations received will be disbursed or credited as directed by the donor to the appropriate school or department as soon as possible.
5. A principal or other administrator may acknowledge a particular donation in some appropriate manner. Such acknowledgement will not constitute an official receipt for tax purposes.
6. Official receipts for eligible donations in the form prescribed by the Canada Revenue Agency shall be issued by the Associate Superintendent, Business Services or designate.
7. The Associate Superintendent, Business Services shall ensure that official tax receipts are sent directly to donors.
8. Grasslands School Division will not refund donations after the donor's cheque has been deposited.

Equipment Donations

1. Action on the part of any community, group, or individual wishing to donate equipment to a school may be encouraged. Items of equipment may be accepted under the conditions outlined in this section.

2. All donors of equipment are required to fill out the form: Application to Donate Property as attached to this policy.

3. Upon completion of the form, one copy will be kept at the school and another copy will be sent to the Division Office.

   If necessary, the Associate Superintendent, Business Services or designate will examine the goods and determine or arrange for the determination of the fair market value.

4. Once the fair market value has been determined this information will be communicated to the donor. If the donor does not agree with the assessment, the donation may be rescinded at that time.

5. The Associate Superintendent, Business Services will prepare a thank you letter and send a copy to the school. The school may wish to express appreciation as well.

6. All equipment accepted as donations shall become the property of the Grasslands School Division to dispose of as it sees fit. Notwithstanding this right, it is understood that the Board will not normally remove equipment from the intended school.

   The Board authorizes the maintenance, servicing and repair of equipment accepted as donations provided that such equipment conforms to the same standards as other Board equipment.

7. If all parties agree on the donation, the Associate Superintendent, Business Services or designate will issue a tax deductible receipt for the amount of the fair market value.

Software Donations

Grasslands School Division only accepts new "licensed" software.

Other Donations

1. Other donations from individuals or groups which are in the best interest of the school system are acceptable. These include volunteer help and occasional gifts of materials and supplies from individuals and organizations.

2. No tax deductible receipts will be issued for these donations.

Donations for which Taxable Donation Receipts Will Not Be Issued

The following cannot be considered as donations eligible for income tax deduction.

1. Tuition fees or other payments for which any right, privilege, benefit or advantage may accrue to the donor.

2. Payment for rental or use of books, facilities, transportation services, equipment, musical instruments, or other instructional resources which are normally paid for by way of a fee.

3. Donations to provide extra services of Grasslands School Division staff in excess of the approved allocations unless specified in contract and approved by specific motion of the Board.

4. Payments which cannot be identified as having been made by a particular donor.

5. Donations of service.

6. Donations of clothes, home baking, hobby crafts, animals, or property of nominal value.

7. Amounts paid for school fund-raising events.

8. Amounts paid for admissions to concerts, dinners, athletic events, social functions, graduations, or similar activities.

9. A contribution from a business that receives a material advantage such as promotion or advertising in return.

10. Any portion of the purchase price of a lottery ticket, raffle, draw, etc.

11. Pledges to pay a gift over a period of years – until the year in which the amounts pledged or the portion of those amounts are actually paid, and only for those accounts.

12. Amounts paid toward own children's field trips.

13. Donations made to benefit an individual child or student.

Appendix — Application to Donate Property

Grasslands School Division — APPLICATION TO DONATE PROPERTY

Name of Individual/Business: _____________________________

Name of Contact Person/Title: ______________________________________

Address: ________________ __________ Telephone: ______________

VEHICLE

EQUIPMENT (Computers, etc.)

OTHER PROPERTY (Furnishings)

DONATE TO: School (Specify): _________________ Or Grasslands (general use) _________

WORKING CONDITION: _______________________

I/WE hereby do make application to donate the above-noted items to Grasslands School Division. I understand that the appraised fair market value will be determined by Grasslands School Division. Grasslands School Division reserves the right not to accept any donation. Property donated to school(s)/department(s) becomes the property of the Grasslands School Division.

Signature of Donor Date

OFFICE USE ONLY