1. Treasurers’ Training Day
March 11, 2017

2. Matters to Discuss Gifts and Receipts Receipting Practices
Reporting Requirements
Guidelines for Completing T3010
Parish Operating Receipts
Parish Audit Guidelines
Questions

3. What is a gift? 3 conditions must be met:
gift must be made voluntarily
there must be a transfer of property
(cash or gifts-in-kind)
there must be a financial sacrifice

4. Tax receipt cannot be issued directly for donated services
Cheque exchange recommended
Two distinct transactions must take place:
a person provides a service to the charity and is paid for that service;
the same person makes a voluntary gift of property to the charity

5. Is the gift eligible for tax receipt?
A missionary from Anglican Church in India will be preaching to your parish. Your parish plans to collect an offering and sends the money to Anglican Church in India.
Can this gift be accepted and receipted?
Can this gift be forwarded to AC in India?
General Rule: No. Alternatives must be found.

6. Is the gift eligible for tax receipt?
A church member has a daughter going on a short-term mission trip with Anglican Church in US. He designates $5,000 in the offering envelope with instructions to pass the money back to his daughter.
Can this gift be accepted and receipted?
Can this gift be forwarded to the daughter?
General Rule: No. Alternatives must be found.

7. Receipting Practices
Establish a donation and/or receipting policy (ie., only donation over $100 will be receipted)
One annual cumulative tax receipt may be issued for cash donations
Gifts-in-kind require individual receipts
Tax receipts are best issued to donors by the last day of February of the following year

8. Receipting Practices
Keep a record that shows how the value of gifts-in-kind was determined.
Gift-in-Kind over $1,000
professional appraiser is suggested. Name and address of appraiser must be included in the tax receipt.

9. Sample Receipt - Cash/Cheque/PAD/ Donation (No advantage)

10. Sample Receipt - Cash/Cheque/PAD/ Donation With advantage (ie
Sample Receipt - Cash/Cheque/PAD/ Donation With advantage (ie., Free Parish’ Dinner)

11. Sample Receipt: Gift-in-Kind (Rarely Recommended)

12. Reporting Requirements
Canada Revenue Agency
T4/T4A slips (last day of February)
T4A slips for honorarium, $500 or more (last day of February)
Tax Receipts (last day of February)
(not filed but maintained)
Annual Charity Return Package (June 30th)
GST66E, Application for GST Public Services Bodies’ Rebate (one month after June 30 and
Dec 31st)

13. Books and records Type of Records Retention Period
Records of meetings, Governing documents and by-laws
Church membership records
Permanent
General Ledger
Instructions for bequests and endowment gifts
Other Records (bank statements, invoices/vouchers, donation records with donation envelopes, T4/T4As, charity return, budgets)
6 years

14. Data Back-up Develop written policy on how to perform data back-up
Perform minimum twice a month
Back-ups should be kept offsite
Regularly (ie., monthly) test the backup to ensure the data is retrievable

15. Reporting Requirements
WorkSafe BC
Payroll and Contract Labour Report
(only if payroll is done by parish)

16. Reporting Requirements
Diocese of New Westminster
PAD Updates (12th day of the month)
Monthly Remittance (14th day of the month)
Vestry Report (mid-March)
Parish Operating Receipts (April 30th)
Financial statements (April 30th)
Preliminary Assessment Form (Sep 30th)
Final Assessment Form (Oct 31st)
Planning Schedule – p5 of Treasurer’s Manual

17. Purposes of T3010 To provide information to the public
To serve as a compliance tool for CRA:
a) assess whether the charity meets its
annual spending requirement
b) assess whether a charity transferred any
money to non-qualified donees

18. Completing T3010 Use the correct version of T3010.
T3010 E (16) for year 2016

19. Completing T3010 Report the “Gifts from charities” in Line 4510
(ie., grants from Diocese)
Tax receipts should not be issued for gifts received from charities (other churches, foundations)

20. Completing T3010
Report the Diocesan assessment and flow- through donations in T1236, Qualified Donees Worksheet and in Line 5050, total amount of gifts made to Qualified Donees.

21. Completing T3010

22. Completing T3010
Allocation of Expenses: Lines should agree with Lines 4950 and 5031

23. Completing T3010 Charitable Activities (Line 5000)
all expenses that will directly further your charitable purposes (i.e., ministries/programs, priest’s salaries & benefits/organist’ honorarium, rent portion of the sanctuary or fellowship hall, prayer books, flowers for sanctuary)

24. Completing T3010
Management & Administration (Line 5010): include bookkeeping and admin personnel, Council meeting, office supplies, rent portion for the admin office)
Other building expenses should be allocated b/w charitable and admin consistently.

25. Completing T3010 Fundraising (Line 5020):
include expenses incurred to solicit donations.

26. Completing T3010
Include a copy of the financial statements duly signed by the treasurer. Failure to include is now a revocable offence.

27. Registered Charity Information Return Summary
If the Registered Charity Return Summary is materially incorrect, file T1240, Registered Charity Adjustment Request.

28. GST 66E, GST Rebate (50% of GST paid)
File twice a year
1st application – covers the first 6 months of your fiscal period (Jan-Jun)
2nd application – covers the last 6 months of your fiscal period (Jul-Dec)
GST Refund should be reported in the financial statements as reduction of expenses, not an income

29. Parish Operating Receipts
ASSESSABLE INCOME
Operating Income
Donations and gifts
Diocesan Grants
Investment Income (if used or transferred in operations)
50% of church hall gross rental income
Rectory and land rental, net of expenses
Fundraising and miscellaneous income
Deficit funded by Restricted Funds (previously un-assessed funds)

30. Parish Operating Receipts
NON-ASSESSABLE INCOME
Onwards/Flow-through Donations (PWRDF, Care+Share, etc)
Donations for Capital Purposes
Donations for Restricted Purposes (funds not used for general operations ie., Endowment)
Unrealized gains on investments (if not used in operations)
GST Rebate (should be reported as reduction of expenses, not an income)

31. Parish Audit Guidelines
Level of Revenue
Diocesan Requirement
$750,000 or more
Full Audit
$250,000 - $750,000
Review Engagement
Below $250,000
Audit or Review Engagement
not required
If requested by:
the Diocesan Treasurer and Business Administrator plus Legal Officer; or
any two of the Bishop, Diocesan Treasurer, or Chancellor
Audit