Donations (Alberta Council)

From SJA

Note this policy is currently a Draft Policy

Contents 1 The Need 2 Policy 2.1 Purpose 2.2 Scope 2.3 Responsibilities 2.4 Definitions 2.5 References and Related Statements of Policy and Procedure 3 Procedures 3.1 Regular Donations 3.2 Designated Donations 3.3 Deferred Donations 3.4 Donations Received in the Provincial Office 3.5 Calgary Building Donations 3.6 Donation Administration 3.7 Attachments

The Need

There is a need to properly categorize, record and issue donations receipts (if requested) so the wishes of the donor are accurately reflected on the financial statements. The three categories currently defined are: 1) Regular Donations, 2) Designated Program Donations, and 3) Restricted Capital Donations. Understanding the different categories will help users when processing donations that are received in the training centres. It is essential to have donation policies and procedures that are clear, well understood and enforced.

Policy

All donations must be processed the day they are received with documentation to ensure that all donations are properly categorized and recorded to reflect the wishes of the donor.

Purpose

This Statement of Policy and Procedure clarifies the categorization of donations to ensure proper accounting treatment and also provides operational guidance to staff.

Scope

This Statement of Policy and Procedure applies to all St. John Ambulance Council Staff.

Responsibilities

The Administrative, Fund Development and Finance departments are responsible for ensuring compliance with this policy.

The Administrative department is responsible for ensuring that:

• Donations are processed the day they are received
• Donations are entered into Unity using the correct contact/account
• Donations are recorded to properly reflect the donors intended use
• Appropriate documentation is completed and forwarded to the Finance Manager on a weekly basis

The Fund Development department is responsible for ensuring that:

• All donations campaigns have been approved by the Provincial Executive Team prior to implementation
• All donations campaigns have been properly communicated with the other departments prior to publication
• Where desired a personalized thank you letter is forwarded to the Finance department for inclusion with the donations receipt

The Finance department is responsible for ensuring that:

• Price lists and item numbers are properly set up and maintained in both the point of sale and financial systems
• The appropriate documentation is received for the donation
• The donation is recorded correctly in the point of sale and financial systems
• Donation receipts are issued in a timely manor
• The donations spreadsheet is properly updated and closed each month
• Each donor receives a thank you letter/note along with the donation receipt

Definitions

"Cash Donations" are monetary gifts received by St. John Ambulance. If

"Non-Cash Donations"also known as gifts-in-kind are non-monetary, non-capital gifts of property that require a letter with an estimated retail value or a third party valuation in order to issue donations receipts.

"Regular Donations" are general donations received with out specific donor instructions. They are recorded as revenue in the period received.

• "Cash Donations" - general cash donations received are coded to account 4600.
• "Non-Cash Donations" - general non-cash donations received are coded to account 4610.

"United Way Fundraising" are cash donations received from the United Way and are coded to account 4900. Donation receipts are not required to issue donation receipts for United Way donations.

"Designated Donations" are donations/grants received which are non-capital in nature and where donors request funds to be used in a specific manner. The Designated Donation Form is required to be completed by the donor when receiving a donation designated for a specific purpose.

• "Designated Donations" - "designated donations" account code 4605 is donations designated for a specific non-capital purchase/project and used in the period received. "Desginated donations" are used to record amortization on previously received donations by the finance department.
• "Designated Donation Revenue" - "designated donation revenue" account code 2320 is used to record donations that are for a specific project or program that will not be used in the same period the funds were received.
• "Designated Grant Revenue" - "designated grant revenue" account code 2325 is used to record grants that are for a specific project or program that will not be used in the same period the funds were received.

"Deferred Donations" are donations/grants received that are capital in nature and the donor requests the funds to be used for a specific capital purchase/project. The Designated Donation Form is required to be completed by the donor when receiving a donation designated for a specific purpose.

• "Deferred Donations" - "deferred donations" account code 4615 is donations designated for a specific capital purchase/project and used in the period received. This account is also used by the finance department to record capital asset donations amortization over the life of the asset.
• "Deferred Capital Donation Revenue" - "deferred capital donation revenue" account code 2520 is used to record donations received for capital projects that will not be used in the same period the funds were received.
• "Deferred Capital Grant Revenue" - "deferred capital grant revenue" account code 2525 is used to record conations received for capital projects that will not be used in the same period the funds were received.

"Fundraising Revenue" are revenues received through various scall scale fundraising events such as raffles, bottle drives, galas, etc. Revenues generated from fundraising events are recorded to account code 4650 "fundraising revenue".

"Grants" are applied for through a grant application process for small projects, non-capital projects, or capital projects. Grant monies are government grants.

• "Provincial Grants" - "provincial grants" account code 4800 are general provincial grants received for small projects.
• "Building Grants" - "building grants" account code 4810 are general industry grants received for small projects.
• "City Grants" - "city grants" account code 4815 are general municipal grants received for small projects.
• "Vehicle Grants" - "vehicle grants" account code 4820 are general vehicle grants received for vehicle projects.
• "Designated Grant Revenue" - "designated grant revenue" account code 4825 is used by the finance department to record non-capital grants received when the monies are used for the designated project.
• "Deferred Grant Revenue" - "deferred grant revenue" account code 4830 is used by the finance department to record deferred grant revenue amortization over the life of the asset.

"Gaming Revenue" are revenues earned through bingos and casinos. For more information on gaming revenue refer to the policy and procedure for "Gaming Revenue".

For any other donation information contact the Finance Department.

References and Related Statements of Policy and Procedure

• SPP FN - Fundraising Revenue (Future Development)
• SPP FN - Grant Revenue Application/Administration (Future Development)
• SPP FN - Gaming Revenue (Future Development)

Procedures

The following procedures provide a summary of actions required to be performed when processing donations. Please note that St. John Ambulance is committed to the environment and therefore has converted the Designated Donation Form to a fill-able format. This form must be completed for all designated and deferred donations.

When a donation is received an order must be created in Unity. All donation receipts are printed out of Unity, therefore, it is crucial that the the donor contact/account information is correct. Donation receipts are required to be produced the month following receipt of the donation.

When a donation is received verify whether it is a "regular donation", a "designated donation", or a "deferred donation". Once that is determined please see the corresponding section below.

Regular Donations

The majority of regular donations received are from first aid coverage provided by community service volunteers at community events.

1. When a regular donation is received an order must be created in Unity.
2. From the 'Type' drop down list in Unity select 'Donation'.
3. Query the account or contact name. If the customer exists verify the contact information is correct. If the donor account or contact name does not exist create a new contact or account.
4. The part numbers to be used for regular donations are: part number Z4600 for regular donations, part number Z4610 for non-cash donations, and part number Z4900 for United Way donations.
5. Once the order is complete print a receipt to be forwarded to the Finance Manager on a weekly basis with the following back-up documentation attached:
   1. If payment was received in the form of a cheque take a copy of the cheque. If cash was received write the cash breakdown on the receipt.
   2. Attach the thank you letter to be mailed with the donation receipt.
   3. Attach any other back-up received with the donation.
6. The finance department will process the donation receipt and mail it along with the thank you letter.
7. All donation documentation will be filed in the Provincial Office.

Designated Donations

The majority of designated donations are received for specific programs(ex. We Can Help, Fellowship).

1. When a designated dontion is received the Designated Donation Form must be completed.
2. Create an order in Unity.
3. From the 'Type' drop down list in Unity select 'Donation'.
4. Query the account or contact name. If it exists verify the contact information is correct. If the donor account or contact name does not exist create a new contact or account.
5. The part numbers to be used for designated donations are: part number Z2320 for "Designated Donation Revenue" or part number Z2325 for "Designated Grant Revenue".
6. Once the order is complete print a receipt to be forwarded to the Finance Manager on a weekly basis with the following back-up documentation attached:
   1. The completed Designated Donation Form.
   2. If payment was received in the form of a cheque take a copy of the cheque. If cash was received write the cash breakdown on the receipt.
   3. Attached the thank you letter to be mailed with the donation receipt.
   4. Attach any other back-up received with the donation.
7. The finance department will process the donation receipt and mail it along with the thank you letter.
8. All donation documentation will be filed in the Provincial Office.

Deferred Donations

Deferred donations are received for capital projects such as building projects or vehicle projects.

1. When a deferred dontion is received the Designated Donation Form must be completed.
2. Create an order in Unity.
3. From the 'Type' drop down list in Unity select 'Donation'.
4. Query the account or contact name. If it exists verify the contact information is correct. If the donor account or contact name does not exist create a new contact or account.
5. The part numbers to be used for deferred donations are: part number Z2520 for "Deferred Capital Donation Revenue" or part number Z2525 for "Deferred Capital Grant Revenue".
6. Once the order is complete print a receipt to be forwarded to the Finance Manager on a weekly basis with the following back-up documentation attached:
   1. The completed Designated Donation Form.
   2. If payment was received in the form of a cheque take a copy of the cheque. If cash was received write the cash breakdown on the receipt.
   3. Attach the thank you letter to be mailed with the donation receipt.
   4. Attach any other back-up received with the donation.
7. The finance department will process the donation receipt and mail it along with the thank you letter.
8. All donation documentation will be filed in the Provincial Office.

Donations Received in the Provincial Office

It is common for donations to be received in the provincial office which include provincial donations as well as donations for the training centres. These donations are received via mail, in person, or online. When donations are received in the Provincial Office for a training centre the following process will take place.

1. The donation will be entered into Great Plains by the provincial accounts receivable coordinator.
2. The finance manager will email a copy of the order, a copy of the cheque, and any other information that may have been received with the donation to the community service coordinator.
3. The community service coordinator will be responsible for completing the following:
   1. Regular donations: If the provincial office received a regular donation, part number Z4600, complete the thank you letter and forward to the finance manager in the following weeks courier pack.
   2. Designated/Deferred Donations: If the provincial office received a designated/deferred donation, part numbers Z2320 for "Designated Donation Revenue", Z2325 for "Designated Grant Revenue", Z2520 for "Deferred Capital Donation Revenue", or Z2525 for "Deferred Capital Grant Revenue", contact the donor and have the Designated Donation Form completed. Complete the thank you letter and send both documents in following weeks courier pack to the attention of the finance manager.
4. Once the appropriate paperwork is received the finance department will process the donation receipt and mail it along with the thank you letter.
5. All donation documentation will be filed in the Provincial Office.

Calgary Building Donations

When a donation is received specifically for the Calgary Builidng Project process the donation as follows:

1. Calgary Building donations are deferred dontions. Therefore, the Designated Donation Form must be completed.
2. Create an order in Unity.
3. From the 'Type' drop down list in Unity select 'Donation'.
4. Query the account or contact name. If it exists verify the contact information is correct. If the donor account or contact name does not exist create a new contact or account.
5. The part numbers to be used for Calgary Building donations are: part number Z2520 for "Deferred Capital Donation Revenue" or part number Z2525 for "Deferred Capital Grant Revenue".
6. Once the order is complete print a receipt to be forwarded to the Finance Manager on a weekly basis with the following back-up documentation attached:
   1. The completed Designated Donation Form.
   2. If payment was received in the form of a cheque take a copy of the cheque. If cash was received write the cash breakdown on the receipt.
   3. Attach the thank you letter to be mailed with the donation receipt.
   4. Attach any other back-up received with the donation.
7. The finance department will process the donation receipt and mail it along with the thank you letter in a timely manner. Note: If the thank you letter will be hand delivered to the donor indicate this on the receipt sent to the finance manager and the donation receipt will be couriered to the Fund Development Coordinator in the Calgary training centre.
8. The finance department will update the 'Donation Tracking' spreadsheet in the Fund Development folder.

Donation Administration

The finance department is responsible for the following administration:

• Reconciling the donation accounts on a monthly basis
• Recording and processing donations received online on a monthly basis
• Ensuring the required donation information has been received in the Provincial Office
• Ensuring donations are recorded correctly
• Processing donation receipts in a timely manner
• Mailing donation receipts with an attached thank you letters
• Filing donation documentation in the Provincial Office

Centre administration responsible for the following administration including:

• Verify donor contact information is up-to-date in Unity
• All required documentation is forwared to Provincial Office on a weekly basis

Failure to submit proper documentation will delay a donation receipt from being issued in the month following the donation and the training centre will be contacted to submit the missing back-up.

Attachments

• Designated Donation Form