06 Jul GS 2019 art 100

Posted at 15:55h in CanRC, GS 2019 by

GS 2019 Article 100 – CNSF (Committee for Needy Students’ Fund)

1.   Material

  • 1.1    Report from the Committee for Needy Students’ Fund (CNSF) (8.2.11.1)
  • 1.2    Letter from the following CanRC: Willoughby Heights (8.3.6.1)

2.   Observations

  • 2.1    GS 2016 (Art. 108) decided to reappoint Grassie-Covenant to administer the CNSF for the period of 2015-2017 and to mandate the CNSF to:
    • [4.4.1]    Review the current guidelines and procedures in light of [the concerns raised by Winnipeg-Redeemer, Willoughby Heights, and Abbotsford];
    • [4.4.2]    Assess the churches annually as per the number of communicant members in the current Yearbook based on the anticipated funding required for the year ahead;
    • [4.4.3]    Report Annually to each church of the federation on its activities and to report triennially to each General Synod on the same and to conclude their report to synod with appropriate recommendation.
  • 2.2    The CNSF reports the following:
    • 2.2.1    Students eligible for assistance apply through the CRTS website;
    • 2.2.2    Upon receipt of budget requests for aid, visits are scheduled for each student to ensure that giving is conducted in a spirit of humility and brotherly love;
    • 2.2.3    Thirteen (13) individual students were supported during the reporting time period;
    • 2.2.4    Churches are assessed annually based on projected student enrollment and anticipated fees;
    • 2.2.5    Rates per communicant member have decreased from $12.00 to $3.00 during the reporting time period.
  • 2.3    The CNSF reviewed the 2013 Support Guidelines and updated the guidelines to better reflect the function of the CNSF in its responsibility to balance the need for aid with sound financial stewardship. The churches were advised of these changes by means of a letter complete with amended Support Guidelines in April 2017.
  • 2.4    The Willoughby Heights CanRC finds it confusing that the term “committee” is used both for the committee appointed by General Synod (being the Council of the Grassie-Covenant CanRC) and the committee appointed by the Council of Grassie-Covenant to administer the day to day affairs of the fund.
  • 2.5    The CNSF made legal inquiries to ensure that the collection and disbursement of funds on behalf of the Canadian Reformed Churches are in compliance with the Income Tax Act (ITA) and the Canadian Revenue Agency (CRA).
  • 2.6    Grassie-Covenant is of the opinion that to be in compliance with ITA, Grassie-Covenant must own the activity of the CNSF.
  • 2.7    To be in compliance with ITA and the CRA, Grassie-Covenant recommends that GS 2019:
    • 2.7.1    Request Grassie (or any other church) to administer the CNSF with a provision that provides Grassie council the autonomy to find an alternate church if council determines not to take on the charitable activity of the CNSF, or
    • 2.7.2    Appoint one or two churches as alternates to Grassie, given the same conditions exists wherein Grassie council determines not to take on the charitable activity of the CNSF.
  • 2.8    The Willoughby Heights CanRC is not convinced that an issue exists as a result of the legal counsel received by Grassie-Covenant concerning the compliance matter of ITA and CRA.
    • 2.8.1    Willoughby Heights posits that CO Art. 20 states that “the churches … [shall] extend financial aid to [students of theology] who are in need of it.” As the churches have decided to do this via the route of general synod, CO Art. 75 becomes relevant. When general synod passes property of the churches in common into the hands of an individual church serving as a committee to general synod, it [i.e. general synod] still retains “ownership of the activity.”
    • 2.8.2    Willoughby Heights is of the opinion, that “In view of the (legal or fiscal) confusion that is caused by the fact that a church is called upon to serve as a committee of general synod, rather than an appointed group of individuals, the general synod of the churches should consider appointing committees in the regular way for matters that involve the flow of funds.”
    • 2.8.3    Willoughby Heights suggests that “the churches (through general synod) could centralize the flow of funds and mandate the (incorporated) committee administering the general fund to act in accordance with the directives of authorized committees (which could then still be churches) when it comes to the use of funds. This would be a manner similar to how the Committee on Relations with Churches Abroad receives funding.”

3.   Considerations

  • 3.1    The Committee has completed its mandate and has done its work faithfully.
  • 3.2    The amended guidelines have responded to the concerns expressed by churches at Winnipeg-Redeemer, Willoughby Heights, and Abbotsford.
  • 3.3    The CNSF would be well served by distinguishing the terminology employed for its overall task and from that of its internal committee.
  • 3.4    The CNSF is to be commended for making legal inquiries to ensure that the collection and disbursement of funds on behalf of the Canadian Reformed Churches are in compliance with the Income Tax Act (ITA) and the CRA.
  • 3.5    GS 2019 does not have the legal and accounting competence to judge Grassie-Covenant’s opinion that to be in compliance with ITA and the CRA, in that Grassie-Covenant must own the activity of the CNSF.
  • 3.6    The CNSF needs to consider if in “owning the activity of the CNSF” it remains in compliance with the Church Order Articles 20 and 75.
  • 3.7    Willoughby Heights is correct in its position that CO Art. 20 states that “the churches … [shall] extend financial aid to [students of theology] who are in need of it.” As the churches have decided to do this via the route of general synod, CO Art. 75 becomes relevant. When general synod passes property of the churches in common into the hands of an individual church serving as a committee to general synod, it [i.e. general synod] still retains “ownership of the activity.”
  • 3.8    GS 2019 does not agree with Willoughby Heights’ suggestion to make it possible to appoint a group of individuals instead of a church to serve as the CNSF. The CNSF is not just an administrative fund but their mandate specifies dealing sensitively with seminary students and their families.

4.   Recommendations

That Synod decide:

  • 4.1    To thank the Grassie-Covenant CanRC for their work as the Committee for the Needy Students’ Fund (CNSF);
  • 4.2    To discharge the CNSF for the duties completed during the period January 1, 2015 – December 31, 2017;
  • 4.3    To instruct the CNSF to seek advice, and if need be, propose bylaw amendments, to ensure that they remain in compliance with the Income Tax Act and the Canada Revenue Agency;
  • 4.4    To reappoint the Grassie-Covenant CanRC as the CNSF to look after extending financial aid to those students of theology who are in need of it;
  • 4.5    To mandate the CNSF:
    • 4.5.1    to assess the churches annually as per the number of communicant members in the current Yearbook based on the anticipated funding required for the new year ahead;
    • 4.5.2    to report annually to each church of the federation on its activities, and to report triennially to each General Synod on the same and to include appropriate recommendations in this report to Synod.

ADOPTED

Tags:
, ,
Print page