FA014 Charitable Donation Policy

Municipality of Roblin, Manitoba

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MUNICIPALITY OF ROBLIN POLICIES AND PROCEDURES MANUAL Section: Finance & Administration Policy No.: F/A-014 Subject: Charitable Donation Policy Effective Date: October 1, 2025 Resolution No.: 2025-345 Revision Date: 1. PURPOSE 1(1) The purpose of this policy is to establish a clear process for accepting, receipting, and disbursing donations intended for third-party recipients, in compliance with Canada Revenue Agency (CRA) requirements for qualified donees. 2. DEFINITIONS 2(1) For the purposes of this policy, and unless otherwise expressly stated, the following definitions apply: a) Qualified Donee - An organization that is eligible to issue official donation receipts for gifts it receives, as defined by the CRA. This includes registered charities, registered municipalities, and certain other public bodies. b) Intra-Donation / Flow-Through Donation - A monetary contribution received by the Municipality from a donor for the express purpose of being transferred to another qualified donee. c) Direction and Control - CRA requirement that when charitable resources are used to benefit a non-qualified donee, the qualified donee must retain full authority over how the funds are spent, and must be able to demonstrate this control with written agreements, receipts, and records. 3. POLICY 3(1) The Municipality may accept and process donations intended for municipal departments, boards, committees, and entities under the Municipality's authority, including but not limited to the Fire Department, recreation programs, and municipal facilities. Such donations shall be receipted in accordance with this policy and CRA requirements. F/A-013 Charitable Donation Policy Page 2 of 2 3(2) The Municipality may accept an intra-donation only where the ultimate recipient is a qualified donee recognized by the CRA, or where the Municipality will retain full direction and control over the expenditure in accordance with CRA requirements. 3(3) Municipality shall not issue charitable tax receipts or transfer funds directly to non- qualified donees, except where the Municipality retains full direction and control over the use of the funds, and where such expenditure aligns with the Municipality's charitable purposes. 3(4) The Municipality shall issue an official donation receipt to the donor in accordance with CRA requirements, including: a) The donor's full legal name and address; b) The eligible amount of the donation after any applicable administrative fees; c) The date of receipt; and d) All other mandatory information prescribed by the CRA. 3(5) Donations received for this purpose shall be subject to an administrative processing fee equal to the greater of 5% of the total donation amount or a flat fee of $25.00, deducted from the donation prior to transfer to the intended recipient or use in a Municipality-directed project. The Chief Administrative Officer or designate may waive this fee, in whole or in part, at their discretion. 3(6) The Municipality shall transfer the net donation amount to the intended recipient, or expend the funds in accordance with the approved direction and control arrangement, within a reasonable time frame after receipt, unless otherwise directed by Council resolution or required by law. 3(7) The Chief Administrative Officer or designate shall be permitted to refuse any donation that does not meet the requirements of this policy or applicable law. 3(8) The Municipality shall not be held liable if the Canada Revenue Agency disallows a donor's claim for a charitable tax credit related to any donation processed under this policy.