University of Regina Charitable Receipts for Receiving US Funds for Federated Colleges

University of Regina Charitable Receipts for receiving US funds for Federated Colleges

Introduction

This policy applies to the University of Regina and the relationship with the Federated Colleges for issuing official charitable tax receipts. All four institutions are Canadian registered charities and are able to issue official tax receipts for Canadian residents and organizations.

University of Regina has been a Canadian registered charity since July 1, 1974

Luther College has been a Canadian registered charity since January 1, 1967

Campion College has been a Canadian registered charity since January 1, 1967

First Nations University of Canada has been a Canadian registered charity since March 23, 1996

The University of Regina has a US taxpayer identification number. The University of Regina issues all official charitable receipts using the Canadian registered charity number and the US taxpayer identification number.

Policy

The University of Regina issues official charitable tax receipts based on being a registered charity in Canada. It has a US taxpayer identification number which is included on the official charitable tax receipt for any donations from people or organizations from the US.

The Federated Colleges do not have US taxpayer identification numbers. The Federated Colleges may request the University of Regina receive the donation on their behalf, process a tax receipt for the done, and then release the money to the Federated College.

Consequences for Noncompliance

If the proper approval from Financial Services, Associate Vice-President, Finance, is not obtained prior to preparing this receipt, or the documentation is not received by Financial Services regarding the transaction, the University of Regina’s charitable status is threatened. The University of Regina must disclose the transfer to a qualified donee/other organizations on the annual information return, line 5050.

The University of Regina will not process donations received from the US for the Federated Colleges if this policy is not followed.

Processes

A Federated College will ask the University of Regina, External Relations to issue an official charitable tax receipt for a US donation.

The Federated College will request the donor to send a cheque in the name of “University of Regina”. When the cheque is received, it is forwarded to University of Regina, External Relations for posting to the Banner Advancement Module. The posting is reviewed by External Relations and a deposit is prepared. The deposit will be dropped off at Financial Services. Financial Services will verify the deposit, and deposit the cheque(s) and process a cash receipt on Banner.

The official charitable tax receipt can then be processed either immediately manually, or during the annual printing of income tax receipts in February of each year.

External Relations will prepare a cheque request to the Federated College (form is located at http://www.uregina.ca/fs/forms/index.html) and forward to Financial Services, Miscellaneous Disbursements. The Federated College must provide the University of Regina with their charitable registration number for the University of Regina annual reporting requirements for the Charities Directorate.

All information regarding this arrangement must be forwarded to Financial Services - Director, Financial Reporting and Financial Analyst, Tax and Reporting. This donation must be recorded on the Canada Revenue Agency Charities Annual Information Return. This will be considered a gift from the University of Regina to another qualified donee/other organization.

Related Information

The US citizen making the donation to a federated college MUST check with their tax advisor as to whether their donation will be tax deductible. A US citizen that is either alumni of the federated college or family of alumni (spouse, children, grandchildren, parents or siblings) can make a donation directly to the University of Regina. The University of Regina will issue a Canadian charitable tax receipt which the donor can use on their US income tax return under the Canada-United States Income Tax Convention.

Sources:

Gifts from Other registered charities:

http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/gfts/rgstrd-chrts-eng.html

Funding Qualified Donees (CPC-014):

http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cpc/cpc-014-eng.html

IRS rules and regulations:

Publication 596 Charitable Contributions:

http://www.irs.gov/pub/irs-pdf/p526.pdf

Publication 597 Information on the United States-Canada Income Tax Treaty:

http://www.irs.gov/pub/irs-pdf/p597.pdf