Charitable Receipting

What is a Gift?

​The requirements of making gifts are:
  • They must be made voluntarily
  • There must be a transfer of property
  • There must be a financial sacrifice
 
A “gift” is defined by common law as a voluntary transfer of property without consideration being returned to the giver.When a person gives a gift to the church they may not have an active say in how the donation is used unless it is specified for a particular ministry or project that has been approved by the church.  Even then, direction is limited to the designation and not to the actual disbursement of funds. 
 
Examples:  building funds, short-term missions trips, benevolence, scholarships, adult/youth/children’s ministries, etc.  Gifts to these would be considered designated gifts and the church is required to account for balances and disburse funds accordingly for these projects.

Under no circumstances is the church to receive and receipt gifts that are given specifically for an individual.  The church is responsible to distinguish between gifts to a program of the church (which is allowed under the ITA) versus channeling a gift through the church that has been designated by the donor to a specific individual.  Charities are not permitted to act as a conduit for passing resources. ​​

Types of Gifts

​There are two types of gifts:
 
1.  Regular tithes/offerings:  gifts given with no specific designation.  These funds go towards the general operating budget of the church.
 
2.  Designated offerings:  are given with specific instructions.  Ie missions, building projects, children.  There are two categories of designated offerings. In both cases the funds are required by law to be spent on the purpose designated and may not be reallocated to general or other projects. 
  • Designated gifts for projects in Canada are for special purposes in the church (benevolence, short term mission trips, building projects) or external ministries (World Vision).  
  • Designated gifts for projects outside of Canada have very specific guidelines. Funds must never be sent to other countries unless they are for funded missionaries of the church (as an employee) or there is a funding agreement in place and financial reporting is provided.