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Bank Account – The church plant should not have a bank account but all funds should be processed through the bank accounts of the local (sponsoring) church.

Deposits – A system should be established for the church plant to deposit all funds received (offerings, grants, etc.) in the bank account of the sponsoring church.

Donations – The church plant must provide the treasurer of the sponsoring church, the names and addresses of all donors so that proper records are kept for individual donors for tax receipting purposes.

Receipts – Charitable tax receipts for donations to the church plant will be issued by the sponsoring church. The Treasurer of the sponsoring church will sign all receipts.

Expenses – All requests for payment of invoices and expenses of the church plant must be approved by an authorized person from the church plant and submitted to the sponsoring church treasurer for payment.

Restricted Funds – The sponsoring church must have a system for recording and tracking all church plant funds. It is not necessary to maintain a separate bank account. The funds can be handled like a restricted or designated fund in the account system or a simple spread sheet used. It is necessary that at all times, the reporting system will facilitate information as to funds received for the church plant, all disbursements and the net balance.

Church Plant Accounting – Depending on the resources available, the church plant may wish to keep a running record of its finances. This is not mandatory and the church plant can rely on the reporting, etc. provided by the sponsoring church.

HST – The accounting system of the sponsoring church should provide for the HST paid by the church plant and the corresponding HST recovery should be credited to the church plant.

Annual Charities Return – The finances of the church plant (income and expenses) are to be included in the Annual Charities Return of the sponsoring church.

Charities Registration – When the church plant becomes registered as a charity with Canada Revenue Agency, it will assume responsibility for all financial matters. The sponsoring church will turn over the net funds held for the church plant to it.