1. Parish Finance
Parish Leadership 101 Workshop
2014
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Stuart Hutcheson CMA
Interim Treasurer & Director of Finance
416-363-6021 x 238 hwadehra@toronto.anglican.ca

2. Legal Status
Provincial: Ontario Corporations Act (Not-
for-Profit Corporations Act, further delayed)
Diocesan: Constitution and Canons
Canada Revenue Agency: Registered Charity
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3. Resources for Churchwardens
Diocesan Website: www.toronto.anglican.ca/churchwarden-
toolbox/
 Parish Finance Manual:
www.toronto.anglican.ca/churchwarden-toolbox/parish-
finance-manual/
 Parish Leaders’ Manual: www.toronto.anglican.ca/parish-
administration/
Canada Revenue Agency – Charities
 www.cra-arc.gc.ca/chrts-gvng/chrts/menu-eng.html
Government of Ontario – Not for Profit Corporations
 http://www.citizenship.gov.on.ca/english/pp/legislative.shtml
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4. Protection of Personal Information
“Privacy Standards Policy”
The Churchwardens have:
access to view all books and records of the
congregation, however;
Only for the purpose of satisfying themselves re:
controls, procedures and duties.
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5. Filing Requirements
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
registered.
Public Service Bodies Rebate Form, every 6
months (www.cra-arc.gc.ca/E/pub/gp/rc4034/README.html)
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6. Filing Requirements
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.
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7. Financial Statements
Government Requirements
CRA requires financial statements. Audit is
recommended audit for charities with revenues >
$250K
Ontario Corporations Act
 Revenues > $100K, Audit
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8. Financial Statements
Canonical Requirements
 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
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9. Review Levels
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Audit Review Compilation/
Notice to
Reader
Nature of
involvement
Application of
GAAP
Application of
GAAP
Compiling
information
Communication
provided
Audit Report
(opinion)
Review
Engagement
Report
Notice to Reader
(no review)
Level of
Assurance
Highest level Moderate level No assurance
Who can
perform
Licensed Public
Accountant (if
charging)
Licensed Public
Accountant (if
charging)
Any accountant

10. Inflow of Funds - HST
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 Public Service Bodies’ Rebate (http://www.cra-
arc.gc.ca/E/pub/gp/rc4034/) up to twice a year for non-
registrants
 50% of federal portion of HST (5%)
 82% of provincial portion of HST (8%)

11. HST
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
with CRA.
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12. HST
Rentals
 Renting/leasing of church property - HST exempt.
 Cemeteries
 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)
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13. Inflow of funds - Rentals
Public Benefit Test – CRA’s measurement for
charities
 Cannot benefit private individuals (i.e. rental prices cannot be
different for members vs. non-members)
 Non-charitable activities?
 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
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14. Inflow of Funds – Donations & tax receipts
 Plate offerings
 PAG (pre-authorized giving)
 Bequests (from an Estate)
 Endowments
 Designated gifts
 Gifts of stock
 Gifts of assets or supplies
 Services (labour) do not qualify as a gift, and
cannot be receipted
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15. Responsibilities of Funds - Trustees
The Churchwardens
 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
restoration.
Public Guardian and Trustee Act of Ontario
Restricted funds cannot be pledged as collateral nor can
the Congregation borrow from restricted funds.
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16. Consolidated Trust Fund (CTF)
Fund managers:
 Foyston Gordon & Payne
 Letko Brosseau
 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
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17. 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
Corporations 3,458,151
26,142,034 23%
Stocks & Mutual funds 82,032,213 70%
Real Estate 2,871,441 2%
TOTAL $ 116,308,188 100%
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18. Consolidated Trust Fund-
Performance
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%
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19. Rectory Funds
Guidelines: Re: The Sale of Rectories and the use of
funds therefrom.
Invested in the Consolidated Trust Fund
Dividends towards housing allowance (up to 100%)
Surplus: application can be made to use or borrow
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20. Cemetery Fund
Fund Trustee: Scotia Trust
Fund manager: Scotia Asset Management
Principal amount cannot be withdrawn –
perpetual care
Dividend (distribution) is 4.5% of the three year
rolling average unit value.
2014 - $6.44 per unit paid out quarterly
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21. Cemetery Fund
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
Corporations 2,131,064
3,809,892 39%
Stocks 5,760,919 58%
TOTAL $ 9,858,613 100%
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22. 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%
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23. Withdrawals
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
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24. FaithWorks Report
& 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

25. 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
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26. Fundraising
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
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27. Diocesan Grants
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28. Diocesan Requirements
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
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29. Diocesan Requirements
Overdue policy:
 Interest charged at 3% above CIBC Prime (current
charge 6%)
 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
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30. Record Keeping
Bank Accounts – you need at least one !
CIBC (preferred fee schedule available)
$10 per month for basic services
Sam Marra 416-980-4538,
sam.marra@CIBC.ca
Cemetery funds & parish funds must be
separated
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31. Keep on-side with the rules
Various pieces of government legislation set
out rules:
CRA and Registered Charity requirements
Payroll requirements
Ontario Corporations Act (Ontario Not-for-
Profit Corporations Act, not yet in force)
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32. Record Keeping
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
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33. Donation Receipting (CRA
guidelines)
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
churchwarden.)
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34. 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
(http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/pdoc-
eng.html)
Payroll records must be kept for 7 years.
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35. Permanent Records
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
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36. END
But this is only the beginning of an exciting new
year for you as a volunteer in your Parish !!
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