What are the procedures for maintaining a gift fund?
The tax law does not prescribe how a gift fund is to be maintained. Approaches will vary depending on the internal accounting policies of the DGR, the types of gifts or deductible contributions they receive and the uses to which the gift fund is put. However, gifts or deductible contributions should be added to the gift fund in a timely manner. If money or property is incorrectly added to the fund, it is to be removed as soon as practicable, with the accounts adjusted, where necessary, and noted accordingly. When a DGR issues a receipt for a deductible gift, the receipt must state: • the name of the fund, authority or institution to which the gift has been made • the DGR’s ABN (if any), and • the fact that the receipt is for a gift. Other information useful for donors includes: • the amount of money donated • a description of any gifts of property, and • the date of the gift. When a DGR issues a receipt for a deductible contribution, the receipt must specify: • the name and ABN (if any
