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Official Donations Receipt for Groups Procedure

Introduction

Scouts Canada is a registered charity and Groups are branches of Scouts Canada.

Donors may designate gifts to Groups.

Scouts Canada issues official donation receipts for our Groups so they don’t have the additional administrative burden of registering for and maintaining registered charitable status.

Following this procedure ensures that our donors are recognized for their support and we meet Canada Revenue Agency requirements.

Official donation receipts are normally issued within 30 days of the service centre receiving the donation. Groups are encouraged to submit donations to their service centre within one week of receipt.

 

Our Procedure

1.      The following apply to the process of making and recording a donation to a Group:

a.      Donors may make a donation at a Scouts Canada Service Centre[1] by cheque, credit card, or cash. Donations designated for a Group will be disbursed to that Group

b.     Donors may make a donation by cheque or cash to the Group, who will submit the donation to their Scouts Canada Service Centre for processing

c.      When a cash donation is received by a Group or service centre, the individual donation record (click this link to the form) must be completed and submitted.

2.     After depositing the donation and confirming the Group is in good standing[2]:

a.      The official donation receipt is prepared

b.     Prepares a cheque requisition to send the donated funds to the Group

c.      Sends the official donation receipt to the Group

3.     The Group sends the official donation receipt and a thank-you letter to the donor.

4.     The Group Treasurer records the donation.

Inadmissible Donations

5.     According to the Canadian Revenue Agency (interpretation bulletin CPC-019), charities may not issue official donation receipts if:

a.      The donor has directed the charity to use the funds to defray or pay the costs of a particular participant

b.     A family member benefits directly from the donation (e.g. registration fees, event fees)

c.      A participant has to collect amounts corresponding to his/her expenses to participate in activities, failing which the member will not be able to participate in the activities. Contributions from family members and friends do not qualify for official donation receipts.

Donating Expense Reimbursement

According to the Canada Revenue Agency[3], “a charity can reimburse a volunteer for the expenses incurred on behalf of the charity and later accept the return of the payment as a gift, provided that the amount is returned voluntarily.”

6.     The parties are encouraged to proceed by way of an exchange of cheques.

7.     The volunteer submits an expense claim.

8.     The Group issues a cheque to the volunteer covering the costs incurred.

9.     The volunteer then writes a cheque to the Group for an equivalent or lesser amount.

10.   The Group submits the cheque to the service centre (see Step 1(b))

11.    By using the cheque-exchange method, a charity will have proper financial records justifying the receipt it issues to the volunteer and the volunteer can document that he or she has transferred property to the charity.

Related Policies & Standards

 

Related Procedures

 

Resources 

Effective Date

March 2, 2019


[1] Scouts Canada Service Centre information
[2] A Group in good standing has submitted their annual financial statement for the last  fiscal year and provided their bank account information so funds may be electronically transferred.
[3] https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/policies-guidance/policy-commentary-012-pocket-expenses.html

Uncontrolled When Printed: When printed, document cannot be guaranteed to have the current information and should be used with caution. This document is marked “uncontrolled” and the user is responsible for determining if the current version is active. To find the most updated version, please refer to Scouts Canada BP&P on Scouts.ca.