POLICY ON CHARITABLE GIFTING TO THE CCA

Transcription

1 POLICY ON CHARITABLE GIFTING TO THE CCA Policy #05-2: Policy on Charitable Gifting to the CCA May 2010

2 Approved: May 2010 Policy No: 05 2 Current version approved: September 2010 Date of next review: N/A Pages: GOAL 1.1 To provide a means for members and the public to make charitable gifts to the Canadian Cycling Association. 1.2 To facilitate donations to qualifying programs operated by Provincial/ Territorial Associations or National Trade Teams. 2. PRINCIPLES 2.1 The Canadian Cycling Association is a Registered Canadian Amateur Athletic Association (RCAAA) and has the right to issue tax receipts to individuals and corporations who make gifts to support its programs. 2.2 In accordance with Canada Revenue Agency (CRA) guidelines, receipts can only be issued for gifts received by the CCA. 2.3 The Canadian Cycling Association shall, at all times, retain the exclusive right to decide the disposition of all donations. 2.4 The Canadian Cycling Association works with Provincial and Territorial Cycling Associations to offer programs and activities which contribute to the CCA mission. 3. FIELD OF APPLICATION 3.1 This policy applies to all individuals making charitable gifts to the Canadian Cycling Association. The gifts, normally in the form of financial donations, are all received by the CCA either directly or through the efforts of P/T Cycling Associations or Canadian based Trade Teams. 4. DEFINITIONS 4.1 Gift: A voluntary transfer of property with no advantages received in return. Policy #05-2: Policy on Charitable Gifting to the CCA September

3 What if the donor gets something in return for their donation? When a RCAAA provides the donor with something of value in return for making a donation, the eligible amount of the donation for income tax purposes is generally reduced. This amount will be reflected on the official donation receipt. For example: A donor gives $1,000 to the CCA, which is a RCAAA. In gratitude, the CCA provides the donor with a national team jersey valued at $ 150. The jersey is considered an advantage of $150. The eligible amount of the donation for issuing the tax receipt is therefore $850 ($1,000 - $150). 4.2 Trade Team: A team that is registered in Canada and participates in national and international cycling competitions sanctioned by the CCA and the UCI. 4.3 Targeted Donations: Donors may not direct donations to programs or activities which would directly benefit that donor, their immediate family or business. The CRA is concerned that parents are solicited for donations when a local club engages in fundraising activity and that club receives a percentage of the funds that have been raised. Such a direct relationship between the gift and a benefit is not allowed by the CRA and the CCA must put in place proper mechanisms to ensure that proper receipts are issued. 5. POLICY STATEMENT 5.1 This policy outlines the basis for charitable gifts to the CCA and the procedures to ensure compliance with CRA regulations while providing support to the programs and activities that contribute to the CCA mission To create and sustain an effective system that develops talented Canadian cyclists to achieve Olympic, Paralympic and World Championship medal performances. 6. PROVISIONS 6.1 Charitable Gifting Procedure An individual or corporation that chooses to make a gift to the CCA will complete Form 1 which is a donation letter providing the required information for the CCA to issue a tax receipt in compliance with CRA guidelines While donors may make requests with regard to their gift supporting particular programs, CRA rules make it clear that this final decision must rest with the CCA. The needs of all CCA program areas will be Policy #05-2: Policy on Charitable Gifting to the CCA September

4 considered in the allocation of any gift and the CCA will make its best efforts to honour requests made on Form A Provincial or Territorial member association or Trade Team wishing to solicit funds for a specific project is required to make an application to the Canadian Cycling Association for approval for the project on the designated form. The P/T association or Trade Team must complete a Form 2 that describes its fundraising project(s) and declaration to comply with the CCA prior to engaging in a fundraising effort for which tax receipts will be issued by the CCA Provincial/Territorial Cycling Associations and Trade Teams may engage in fundraising and receive a percentage of the funds raised as financing for their activities which are consistent with the CCA s purposes (as set out in its governing documents and posted on the CCA website). Note all gifts in support of a P/TCA or Trade Team must be made to the CCA and all gifts must have a Form 1 letter to support the donation Donations greater than $ will receive a tax receipt which will be issued within 30 days of receipt and include a letter of thanks to the donor from the CCA. 6.2 Application for Provincial/Territorial Association and Trade Team Support In those circumstances where the gift received by the CCA is derived from the efforts of the Provincial/Territorial Cycling Associations or Trade Teams (as set out in above) the CCA may return a substantial portion of the gift to the appropriate body. The Prov/Terr Association or Trade Team must complete a Form 2 that describes its fundraising project(s) and declaration to comply with the CCA policy prior to engaging in a fundraising effort for which tax receipts will be issued by the CCA The CCA, in order to comply fully with CRA guidelines, must keep a significant amount of the gift for its own purposes. The CCA cannot be used as a conduit for entire gifts to non-charitable organizations. A significant amount must be more than the administrative fee covering the expense of receiving the funds and issuing the tax receipts Following from above, the CCA will retain ten percent of each donated gift received. The minimum amount retained will be $ per donation The maximum amount retained in the case of Provincial/Territorial Associations will be $ and for Trade Teams $ for each donated gift. Policy #05-2: Policy on Charitable Gifting to the CCA September

5 6.2.4 The CCA will accept an application for financial assistance from the Relative Provincial/Territorial Association or Trade Team once the fundraising project has been completed; all donated gifts have been reconciled (particularly personal cheques clearing) and the Form 3 has been completed including the required expense breakdown and program/project description provided Decisions on financial assistance for programs will be based on: - CCA's financial capabilities, - the Prov/Terr Association or Trade Team s own fundraising efforts, - the priority of the program relative to other funding applications. 7. REVIEW AND APPROVAL 7.1 This policy was approved by the Canadian Cycling Association Board of Directors on the 2nd day of May, Date of Last Review: September 6, Original policy development lead: Greg Mathieu Policy #05-2: Policy on Charitable Gifting to the CCA September

6 FORM 1 Canadian Cycling Association Riverside Drive Ottawa, Ontario KlH 7X3 Attention: Director of Finance I would like to make a donation to the Canadian Cycling Association to assist with its efforts to promote the sport of cycling in Canada. I have enclosed a cheque made payable to the Canadian Cycling Association in the amount of $ (donations of $25 or more will be issued an official tax receipt). I request that my donation (please designate appropriate box): be used for the support of (Name of specific program) OR be used to support the program area with the greatest need. I understand that the Canadian Cycling Association will do its best to fulfill my expressed wishes; however, I acknowledge that the donation is legally CCA's and CRA rules require that the CCA shall have sole and final discretion in its use. Signature Date My complete mailing address (printed or typed) is as follows: Name: Address: Postal Code: * The CCA issues tax receipts in accordance with the Canada Revenue Agency (CRA) guidelines in place at the time of issue. The CCA accepts no responsibility for CRA rulings in respect of eligible donations. Policy #05-2: Policy on Charitable Gifting to the CCA September

7 FORM 2 CANADIAN CYCLING ASSOCIATION APPLICATION REQUESTING APPROVAL OF SPECFIC FUNDRAISING Provincial/Territorial Cycling Association: Trade Team: Address: City: Postal Code: Telephone: Cycling Club (if applicable): Description of Fundraising (solicitation target, brochure, etc.): Declaration: I (we) agree to follow the Canadian Cycling Association Tax Receipting Guidelines and to remit all donations collected to the CCA. Provincial/Territorial Cycling Association President Print Name: Date: OR Trade Team Manager Print Name: Date: Policy #05-2: Policy on Charitable Gifting to the CCA September

8 CANADIAN CYCLING ASSOCIATION FORM 3 Application for Financial Assistance Please complete and send to the Canadian Cycling Association. Provincial Cycling Association Trade Team : Address: Postal Code: Telephone: Fax: Reason for Request (Description of Program): Date of Program: No. of Participants: Location of Program: Expense Breakdown Attached: Program / Project Attached: Declaration: We promise that all monies received from this request will be used as outlined in the above description. We understand that the allocation of support is based on the availability of monies, our participation in CCA fundraising efforts, and the importance of the event within the CCA's mandate to promote cycling. We have followed the CCA Financial Assistance travel guidelines (Appendix 1). Provincial/Territorial Cycling Association President Print Name: Date: OR Trade Team Manager Print Name: Date: Policy #05-2: Policy on Charitable Gifting to the CCA September

9 APPENDIX 1 Donor Bill of Rights Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To ensure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the nonprofit organizations and causes they are asked to support, we declare that all donors have these rights: 1. To be informed of the organization s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes. 2. To be informed of the identity of those serving on the organization s governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities. 3. To have access to the organization s most recent financial statements. 4. To be assured their gifts will be used for the purposes for which they were given. 5. To receive appropriate acknowledgement and recognition. 6. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law. 7. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature. 8. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors. 9. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share. 10. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers. Policy #05-2: Policy on Charitable Gifting to the CCA May 2010

10 Appendix 2 CCA Expense Reimbursement Guidelines Expenses may be claimed for the following items: Item Expenses Maximum Allowed Receipts Air Travel Economy Airfare Economy Airline Ticket Train or Bus Actual Amount Paid Required Rental Auto Rental Fee Distance & Number Dependent -Rental receipt - Gas receipts Personal Auto CCA Rate / km.38 cents / km Not required Accommodation - Hotel Room cost - Required - Home stay $ / person / day Meals B-L-D - Athletes $ / day - Support $ / day Entry Fees Actual amount paid Required Other - Not required - not required - not required Policy #05-2: Policy on Charitable Gifting to the CCA September