ReturnThe Board of Finance of KBC has prepared this document regarding designated funds to ensure KBC complies with government regulations and to ensure consistency in the treatment of designated funds by tellers and those involved in fund raising activities.
Designated Funds Policy
Funds given to KBC may be designated to specific charities, programs or projects that have been approved by the church body at business meetings.
Once the need for a program or project has been met, or the group responsible for the program or project has determined that it cannot or will not be completed, the unused designated funds will be used where most needed. The use of such funds will be recommended by the Board of Finance and approved by the church at a business meeting.
Donations to charities, programs or projects that have not been approved by the church body at a business meeting should be given directly to those organizations by the donor.
Guidelines for Designated Funds
Funds Designated for Approved Charitable Organizations
The Board of Deacons, upon recommendation from the Missions Committee, recommends specific charitable organizations for funding from KBC, and designates the amount of that funding in the annual budget, which is approved at the December business meeting. These organizations must be registered charities (Qualified Donees per the Income Tax Act) and align with KBC’s purpose. Currently, the charitable organizations approved for KBC funding are Atlantic Baptist University, Acadia Divinity College, Canadian Baptist Ministries, Convention of Atlantic Baptist Churches, Camp Tulakadik and Saint John – Kings Association. Individual contributions designated for these charitable organizations through either Sunday giving or memorials will be directed by KBC to the charitable organizations specified and will be receipted for taxation purposes.
Donations to charitable organizations not included in the above list should be made directly to the organizations. Tax receipts for receiptable donations will be issued directly to the donor from those organizations that are registered charities.
Benevolent Offerings
Benevolent offerings are for the benefit of anyone in unfortunate circumstances. Benevolent offerings will be placed into the pool of benevolent funds in order for receipts to be issued.
Income Tax regulations specify that no receipt is to be issued when the offering is designated for a specific person or family. In such a case, the donor would be making a gift to the person or family, not to the church. A donor who wishes to benefit specific persons or families should give directly to them, not through the church.
Funds Designated for Mission Trips
Funds designated for a specific mission trip, not an individual team member or a subset of team members, will be receipted for income tax purposes. Such funds will benefit all members of the mission trip. Each KBC mission trip is funded one third (1/3) by KBC, one third (1/3) through fund raising and one third (1/3) by the individuals participating in the trip. Funds designated for a specific mission trip will first be used to reduce the amount to be raised through fund raising. If the fund raising goal has been achieved, the designated funds will be used to reduce equally the amount to be paid by the individuals participating in the mission trip.
Funds designated for the portion of a mission trip cost for which an individual team member, or a subset of team members, is responsible (up to a maximum of one-third of the cost per person) cannot be receipted for taxation purposes. Income Tax regulations specify that no receipt can be issued when the funds are designated for a specific person or family.
Fund Raising
Revenue Canada stipulates that the receiptable amount for a donation must exclude any benefit received by the donor. For a fund raising dinner the meal is considered a benefit to the donor. The amount receipted for income tax purposes is the amount of the donation less the fair market value of the meal. The fair market value of the meal is to be determined by the group that is putting on the dinner. This value represents the price for the dinner and is to appear in the bulletin along with the notice of the dinner.
Non-Receiptable Funds
Funds that are receiptable for tax purposes will be processed each Sunday by the tellers; but funds that are not receiptable for tax purposes should be handled separately.
Funds that are not receiptable for tax purposes should be given directly to the individuals designated to collect those funds rather than coming in with the weekly offering. Such funds include, but are not limited to, the following:
Return