BBC Designated Giving Policy

Designated Giving Policy for Bonavista Baptist Church (BBC)
(Established by the Finance Committee on 2023.03.08 – Approved by the Elders Board on 2023.05.09)

INTRODUCTION

BBC is a Canadian registered charity (i.e. a qualified donee). Contributions to the church are deductible for federal income tax purposes under the rules and regulations established by the Canada Revenue Agency (CRA). The purpose of this policy is to set forth how Designated Giving will be treated in order to be considered a tax deductible contribution. For purposes of this policy, Designated Giving is designated for a specific fund (other than the General Offering) or a ministry project.

TYPES OF CONTRIBUTIONS

Generally speaking, a contribution to the church is either 1) undesignated giving, which supports the yearly budget of the church through our General Offering or 2) designated giving, which supports other approved funds or projects of the church (which are usually not part of the yearly budget).

CANADA REVENUE AGENCY (CRA) DESIGNATED GIVING GUIDELINES

Generally speaking, the CRA does not allow a charity to issue a tax receipt to donors who ask that their gift benefit a specific person or family or be directed to a particular program that will benefit the donor (or someone related to the donor). This is because the law requires that a charitable gift be for the public benefit, so a private gift between individuals, or one that results in a benefit flowing back to the donor, is generally not charitable and is viewed as “private benevolence.”
However, the CRA accepts that donations may be subject to a general direction from a donor and they are allowed to be used in a particular program, provided that
• no specific person or family benefit accrues to the donor;
• the directed gift is unconditionally given to the Designated Fund (Program);
• Decisions regarding utilization of the donation within a program rest with the charity.
Provided these criteria are met, a contribution made to a charity that is for the advancement of the charity’s objects is a gift for income tax purposes. It is a gift to the charity even if the donor making such a contribution is a relative or friend.

BONAVISTA BAPTIST CHURCH (BBC) DESIGNATED GIVING POLICY

BBC is allowed to accept donations, in addition to General Offering, only to a Designated Fund, not an individual, and issue a tax receipt to donors where is can be shown that
• All Designated Funds (or Projects) support the charitable purposes (objects) of BBC and have been approved by the Elders;
• BBC has ultimate control to both collect and disburse Designated Funds.
• Treasurer assigned accounting codes are created in conjunction with a donation form to manage the collection and disbursement of the Designated Fund.
• A directed gift does not benefit a specific person or family (i.e. it is not private benevolence).
• Contributions to a Designated Fund that result from a fund raiser (e.g. bottle drive, yard maintenance, dinners or similar fund raising activities) are not a gift for income tax purposes.
• Contributions to a Designated Fund will be used as designated. When the need has been met or if the Fund is unable to fulfill its designated purpose, funds will be redirected to similar projects or where most needed, upon approval of the Elders;
• If a Designated Fund is established to support ministries or programs carried out by other mission organizations either denominational or interdenominational it needs to be aligned with the charitable purposes (objects) of BBC and the other mission organization needs to be a Canadian registered charity (i.e. a qualified donee);
• A charitable contribution to General Offering or a Designated Fund is non refundable to the donor. To refund the gift would be contrary to the basic definition of a charitable contribution and could have possible tax implications to the donor and potentially cause a liability to the church.

CONCLUSION

The church respects the donor’s decision to give as led by the Lord. The above policy is meant to provide guidance to the donor and the church body as well as comply with the applicable tax laws. The church reserves the right to refuse contributions that are not related to the primary purpose of the church, not in the best interest of the church, or those not qualified for tax purposes. The church also reserves the right to amend this policy at any time. Please contact the Treasurer of the church for clarification or questions regarding this policy.