Firstly, I would like to say, don’t try to memorize all that I will be going though. Most of this information is on our website, or feel free to call us at the Diocesan.
Each parish of the Diocese of Toronto is a provincial corporation, as per the Church Temporalities Act of 1841. As a Provincial Corporation, the “directors” of the Corporation are the two Churchwardens. Canon 15 defines the powers and authorities of the Churchwardens. As a Registered Charity, your church must adhere to the rules and requirements of the Canada Revenue Agency for charities. The main things are ensuring your activities remain charitable, issuing donation receipts appropriately and that you file the Charity Information Return.
The Diocese has a policy for Privacy on our website. This applies mainly to such private information that is collected regarding donations/givings.
March 15 deadline: Statistical information, for building parish profiles and used for long term planning Reporting to the National office of Anglican Church in Canada In addition, the returns are used to calculate the parish allotment. Any questions on the Parochial return, there is a handbook on the website or you can call Kathy Garrison at the Diocese office. As a registered Charity (which all parishes should be), failure to file the T3010 can and will result in CRA revoking your church’s charity status. The parish will no longer be able to issue tax receipts, and will no longer exempt from tax. HELP FILLING OUT
You can and will lose your parishes right to vote at Synod if you do not meet the deadline for submitting your Parochial and Incumbent returns.
Financial Statements are to help users make decisions. Ontario Corporations Act Requirement Section 96 Exemption Section 96.1
Who can do an AUDIT: Auditor or accountant of review: Licensed (mainly CA’s and a few CGA’s) Professionally insured Volunteer (CA, CMA, CGA) may be exempt from being licensed, but still required to be professionally insured. Auditor names: List with area offices Other parishes for referrals Designated Bodies website The Diocese doesn’t recommend auditors, since we are one of the users of the financial statements. This is to meet government regulations as well as protection of the parish and those handling the funds within the parish. It brings comfort to donors.
This is attached for your review , to talk about the different levels of accounting verification. GAAP is the Generally Accepted Accounting Principals Audit: testing and reviewing the accounting systems to ensure accuracy. Management Letters. Review enquiry, analytical procedures and discussions. When audit is not required, but want some assurance that financial statements are plausible. Compilation: “compile” financial statements from information provided. Estimates, sometimes the information is incomplete. No attempt to verify that the information is accurate or complete.
Even if your church is not HST Registered, you can still file for a rebate. 2 forms: Gst66 (federal portion) rc7066 (provincial portion) 69.69%
A parish would rather not be registered, because if it is registered, you will then need to collect HST on all your “taxable sales”.
Do not have to charge HST when renting any portion of church property Interment sales are normally exempt from HST, unless the sale is a true sale. An HST consultant thought that the church would probably not “sell” the plot since it would have to give up rights to the property sold. This would mean that the person purchasing the plot has the right to do whatever it wants with the plot and the church would have no control over its use. Rectories lived in by clergy: Certain purchases and expenses are not eligible for the Pubic Service Bodies’ rebate. These include: Property or services you acquire to supply to an officer, employee, or member of the charity, or to another person related to that person, for personal use unless: You supply it in the same year you acquire it for its fair market value and tax is payable for the supply; or You supply it free of charge to the person and it is not a taxable benefit;
Expenses that are paid for clergy as a taxable benefit (i.e. housing and utilities) not eligible to claim a rebate on the HST paid. Utilities declared as a taxable benefit would include phone, light, heat and water.
Is rental of church property still “charitable”? Related Business: 90% done by volunteers Linked (i.e. renting of excess capacity during non-peak times) and subordinate See Decision Tree
Gifts of assets: Exchange of cheques - cleaner paper trail if you are issued an invoice by the “donor”, pay the invoice and receive a donation of an equal amount from the “donor” or vendor. Diocesan Stock Broker – Letter of Direction Open Donations (cash in the plate) cannot be receipted since a donor cannot be identified.
Mainly that you expend the funds that have been donated for their intended purposes.
Dividend in 2012 - $7.77
Benchmark: 40% DEX Universe Bond Index 30% S&P TSX (CDN) 15% S&P 500 (US) 15% MSCI EAFE (Int’l)
The funds are restricted: in case of purchase of another rectory. When funds are applied for, they have most often been for Capital items. Most recently, they have been loans to the parish from the rectory funds.
Dividend in 2012 - $6.20 Funeral, Burial & Cremations Act of Ontario
Benchmark: 60% DEX Universe Bond Index 40% S&P TSX (CDN)
Meeting these deadlines are key, so that allocations to the charities we help through FaithWorks can be made on time.
Change to Case for Support: advised to seek a vestry decision on the reallocation of campaign funds.
Donations are to be received by the Diocese directly. If the parish receives, accidently, parish should issue tax receipt and send money to Diocese.
Encouraged to use and Electronic Funds Transfer method (e.g. credit card or cheque) for installment payments. Why? It guarantees that a pledge is fulfilled, it stream lines administration and cuts down postage costs and the chance that cheques may go awry in the mail.
Trillium Grants – allowed to apply for Grant applications must be accompanied by Audited Statements
Information on the Allotment: - sent out in September for the following year - Based on Parochial Returns submitted by parish - 3 months to review and identify errors or needs to appeal - Executive Board in January reviews the appeals
$10 per month to include general banking Unlimited transactions Wallet depository service Not automatically put on this arrangement. April 2013 - $3.00 for statements. Consider going electronic
Donation records: Envelopes (unless information is kept in a ledger) Year end Financial records Journals, ledgers, financial statements, T3010, source documents Electronic records – must be kept in a readable format and must remain readable in the future. Computer crash: Charities responsibility.
For PAG/PAR, we encourage parishes to contact the United Church in Canada to utilize their program at a very reasonable cost to the parish. Contact our Stewardship Department for more information.
The Diocese retains the records for your clergy paid through the Diocesan payroll. Clergy paid on units will be paid by the parish directly: (honourary, Sunday supply, retired or interim clergy)
Insurance policies (abuse is on occurrence based, must prove insurance for the time of occurrence).
Parish Leadership 2014: Finance
Parish Leadership 101 Workshop
Stuart Hutcheson CMA
Interim Treasurer & Director of Finance
416-363-6021 x 238 firstname.lastname@example.org
Provincial: Ontario Corporations Act (Not-
for-Profit Corporations Act, further delayed)
Diocesan: Constitution and Canons
Canada Revenue Agency: Registered Charity
Resources for Churchwardens
Diocesan Website: www.toronto.anglican.ca/churchwarden-
Parish Finance Manual:
Parish Leaders’ Manual: www.toronto.anglican.ca/parish-
Canada Revenue Agency – Charities
Government of Ontario – Not for Profit Corporations
Protection of Personal Information
“Privacy Standards Policy”
The Churchwardens have:
access to view all books and records of the
Only for the purpose of satisfying themselves re:
controls, procedures and duties.
March 15th – Churchwardens’ Parochial Return
June 30th - T3010 (Charitable Information Return
for CRA) is due 6 months after year end
HST return - Annually or Semi-Annually if
Public Service Bodies Rebate Form, every 6
Churchwardens Parochial Returns:
As stated on the returns:
“Failure to file this return or the Incumbent’s return by
March 15 may cause the Incumbent and Lay Members
of Synod to forfeit their right to a seat in a session or
sessions of Synod.”
T3010 – CRA’s Charity Information Return
CRA can (and has!) revoke your charitable status,
whereupon the church is no longer exempt from tax
and cannot issue donation receipts.
CRA requires financial statements. Audit is
recommended audit for charities with revenues >
Ontario Corporations Act
Revenues > $100K, Audit
Canon 14, section 14(7) states an audit is required
Canon 14, section 14(4) allows for a Review
Engagement or Notice to Reader if revenues are less
than $100K with:
Approval of Area Bishop
Extraordinary resolution passed at Vestry
Audit Review Compilation/
Notice to Reader
Highest level Moderate level No assurance
Inflow of Funds - HST
Public Service Bodies’ Rebate (http://www.cra-
arc.gc.ca/E/pub/gp/rc4034/) up to twice a year for non-
50% of federal portion of HST (5%)
82% of provincial portion of HST (8%)
If Registered for HST:
Charge, collect and remit HST on your taxable supplies
annually or semi-annually.
Registration is not required if you qualify for the
Small Supplier exemption:
Less than $50,000 in taxable sales (not including rent) or;
Less than $250,000 in gross revenues
Must be in good standing as a Registered Charity
Renting/leasing of church property - HST exempt.
Interment is exempt from HST unless the sale of the plot is
a true sale
Rectory expenses (taxable benefit)
Not eligible for HST rebates (utilities)
Inflow of funds - Rentals
Public Benefit Test – CRA’s measurement for
Cannot benefit private individuals (i.e. rental prices cannot be
different for members vs. non-members)
Related businesses are allowed (see Decision Tree)
Substantially all the work is done by volunteers
Business is linked, but subordinate to the charity’s purpose
Inflow of Funds – Donations & tax receipts
PAG (pre-authorized giving)
Bequests (from an Estate)
Gifts of stock
Gifts of assets or supplies
Services (labour) do not qualify as a gift, and
cannot be receipted
Responsibilities of Funds - Trustees
responsible for following the provisions of the Public
Guardian and Trustee Act of Ontario.
If there is a misapplication of funds
Congregation will be required to make restoration.
The Churchwardens may be required to personally make
Public Guardian and Trustee Act of Ontario
Restricted funds cannot be pledged as collateral nor can
the Congregation borrow from restricted funds.
Consolidated Trust Fund (CTF)
Foyston Gordon & Payne
Scotia Asset Management
Northleaf Capital Partners
Dividend (distribution) is 4.5% of the three
year rolling average unit value.
2014 - $8.23 per unit paid out quarterly
Consolidated Trust Fund (CTF)
Value of what we have in the CTF at Dec 31, 2013:
Cash & Short-term deposits $ 5,262,500 5%
Bonds Prov. & Municipal 22,683,883
Stocks & Mutual funds 82,032,213 70%
Real Estate 2,871,441 2%
TOTAL $ 116,308,188 100%
Consolidated Trust Fund-
1 year 3 year 5 year
CTF 18.7% 8.9% 10.6%
Benchmark 13.4% 6.9% 9.6%
Value added 5.3% 2.0% 1.0%
Guidelines: Re: The Sale of Rectories and the use of
Invested in the Consolidated Trust Fund
Dividends towards housing allowance (up to 100%)
Surplus: application can be made to use or borrow
Fund Trustee: Scotia Trust
Fund manager: Scotia Asset Management
Principal amount cannot be withdrawn –
Dividend (distribution) is 4.5% of the three year
rolling average unit value.
2014 - $6.44 per unit paid out quarterly
Value of what we have in the Cemetery Fund at Dec 31, 2013:
Cash & Short-term deposits $ 287,800 3%
Bonds Gov of Canada 928,603
Prov. & Municipal 750,225
Stocks 5,760,919 58%
TOTAL $ 9,858,613 100%
Cemetery Fund- Performance
1 year 3 year 5 year
Cemetery Fund 9.1% 5.7% 8.9%
Benchmark 4.5% 3.7% 7.9%
Value added 4.6% 2.0% 1.0%
Both wardens approval/signature
2 weeks turnaround after receiving request
+ $250k – 2 extra weeks notice
May require Vestry approval or Diocesan
Council approval, e.g. Rectory Funds
& Remittance Procedure
FaithWorks funds held “in trust”
Remit to the Diocese quarterly.
Parish may retain 15% for local outreach
Campaign ends on Dec 31 each year
Report & funds must be provided to the
Stewardship office of the Diocese within the first
week of January of every year 24
Our Faith – Our Hope
All donations are received and receipted by the Diocese
Donations of stock are to be processed through the
Diocesan brokerage account
Rebates (40%) will be paid to the parish quarterly (not
assessable on CWPR)
Promote how rebate is used re: “Case for Support”
Diocese will provide list of donors who have completed
their pledges to allow parishes to follow up
Financial statement presentation for designated funds
Flexibility within the restrictions
allow for the possibility for your parish council or
advisory committee to change the use
Monthly billing from Diocese :
costs of clergy
Allotment (Canon 4)
Overdue list (31/12/13):
19 parishes greater than 3 months (hard list)
26 parishes less than 3 months (soft list)
Total outstanding/unpaid $1,292,000
Interest charged at 3% above CIBC Prime (current
Request for payment plan
Visit parish to assist
Bishops are always kept informed (monthly)
Ineligible for Diocesan Grants
Churchwardens role may be taken over by an
Administrator appointed by Diocesan Council
Bank Accounts – you need at least one !
CIBC (preferred fee schedule available)
$10 per month for basic services
Sam Marra 416-980-4538,
Cemetery funds & parish funds must be
Keep on-side with the rules
Various pieces of government legislation set
CRA and Registered Charity requirements
Ontario Corporations Act (Ontario Not-for-
Profit Corporations Act, not yet in force)
Keep 3 years of donation receipts
Any back up records to verify for 3 years also (i.e. copy
of cheque, cheque stub, envelope etc.)
Accounting records need to be kept for 7 years.
Records kept at the address on file with CRA (church
address). Back ups at another location
Donation Receipting (CRA
Receipts must include the following:
Statement: “official receipt for income tax purposes”
Church name and address
Charity’s registration number
Place and locality where receipt was issued
Amount of donation
Year of donation
Date of receipt if different than year of donation
CRA’s name and website (cra.gc.ca/charities)
Unique serial number
Signature of authorized individual (we recommend a
Record Keeping - salaries
Stipend paid clergy pay processed by the Diocese
Clergy paid on units and other employees (eg;
administrator, organist) processed by the parish. (see
payroll deductions online calculator provided by CRA
Payroll records must be kept for 7 years.
Minutes of Vestry, Advisory Board etc.
All documents and bylaws (Constitution and Canons)
Capital additions (e.g. building project)
Insurance policies (very important!)
Send to Diocesan archives when finished
But this is only the beginning of an exciting new
year for you as a volunteer in your Parish !!