All lending arrangements for church purposes are to be done through the CIBC Credit Agreement with FGCC or through a national office in-house loan. Prior approval must be obtained from the national office. See Church Debt for further details.
Accounting for Church Loans
CIBC Loans: loans advanced by CIBC are a liability of the Foursquare Gospel Church of Canada and reported for accounting purposes in the financial records of the national office and the T3010 Annual Charity Return. CIBC loans are not to be recorded in the church accounting records. Loan payments are recorded as an expense in the Qualifed Donee section for FGCC and reported as such on the T3010 Annual Charity Return. A monthly statement will be provided to the church by the national office to report loan details and balances.
In-House Loans: loans advanced by the national office are to be recorded as a balance sheet liability in the financial records of the church. A new account called "FGCC In-House Loan Payable" will need to be created in the liability section of the balance sheet. Loan proceeds and payments are posted to the new Loan Payable account.
Upon national board approval, the procedure for disbursement of loan funds is as follows:
CIBC Loans - Property Purchase or Building Project
CIBC Loans - Building Project
CIBC Loans - Building Improvements or Renovations
National Office In-House Loans
Loans for capital purchases or emergency will be funded by In-House loans by the national office from general funds.