Loading...
HomeMy WebLinkAbout2018-PAD-074 Charitable Donations Receipt COUNTY OF NEWELL - POLICY HANDBOOK POLICY NO: 2018-PAD-074 TITLE: CHARITABLE DONATIONS RECEIPT ADOPTED: September 20, 2018 (C-SUPERCEDES NO: n/a 303/18) TO BE REVIEWED: PAGE NO: 1 of 2 POLICY PURPOSE: This policy outlines the standards for accepting Charitable Donations in accordance with Canada Revenue Agency (CRA) guidelines and for issuing official Charitable Donation receipts (official receipts) to donors for cash or in-kind donations. DEFINITIONS: Charitable Donations: voluntary transfers of tangible property, including cash. Donations in-kind: tangible property, other than cash, that are eligible donations. Fair Market Value (or Valuation): the highest dollar value that a property would bring in an open and unrestricted market, between the willing buyer and the willing seller who are acting independently of each other. POLICY STATEMENT: The County of Newell may issue official donation receipts that qualify as Charitable Donations in accordance with CRA guidelines. If requested the County will issue official receipts to donors for eligible donations with a net cash value or net fair market value of $25.00 or more. POLICY GUIDELINES: To be eligible for an official receipt, the donation must:  Be made payable to the County of Newell, and  Be in cash or in-kind; and  Be voluntary; and  Be supportive of the County’s mandate; and  Be accepted by the County  All cheque donations will be required to have been cleared by the County’s financial institution prior to the issuance of an official receipt. COUNTY OF NEWELL - POLICY HANDBOOK POLICY NO: 2018-PAD-074 TITLE: CHARITABLE DONATIONS RECEIPT ADOPTED: September 20, 2018 (C-SUPERCEDES NO: n/a 303/18) TO BE REVIEWED: PAGE NO: 2 of 2 Donations in-kind may only be accepted with the approval of the CAO, or their designate, after they have completed a risk assessment/cost-benefit analysis of accepting the gift, if deemed required. The value of Donations in-kind will be determined by the item’s Fair Market Value. Written Valuation of Donations in-kind, completed within the last 6 months, must be submitted with the request for an official receipt and shall meet the following: a) $1,000 or less:  Appraisal by knowledgeable internal staff; plus  Valuation from online auction or shopping website b) Over $1,000:  External appraisal by an independent arm’s length party is required, unless there is a ready market for the item from which a Fair Market Value can be determined;  For land and improvements, current market values will be accepted by the County Assessor or a certified Appraiser. ROLES & RESPONSIBILITIES: Municipalities are required to abide by the rules prescribed by the Income Tax Act in relation to the issuance of official donation receipts. If the municipality fails to issue a donation receipt in accordance with the Income Tax Act, CRA can revoke the status of the qualified donee and suspend the receipting privileges. ROLE RESPONSIBILITY Issue receipts only for transactions that qualify as Manager of Finance charitable donations Ensure the fair market value of donations in-kind have been Manager of Finance properly established Ensure that receipts contain accurate and complete Manager of Finance information as required by the CRA Sign official donation receipts Chief Administrative Officer Maintain proper books and records supporting any official Manager of Finance donation receipts issued