Holding Account Policy PDF Download
Holding Account Policy
1. Purpose of this Policy
● To clarify the practices for holding funds for committees and special activities.
● To maintain responsible stewardship of funding and provide transparency for sponsors,
donors, and official review bodies (e.g., Canada Revenue Agency).
2. Types of Holding Accounts
There are two main types of holding accounts:
i) “Surplus Funds” from regular activities (e.g., conferences, lecture tours), and
ii) “Special Purpose Funds” raised in accordance with these guidelines and the mandate of
Science Atlantic.
3. Management and Reporting for Holding Accounts
i) Management of Holding Accounts is the responsibility of the Executive Director, in keeping
with Board investment and financial policies.
ii) It is the Committee Chair’s responsibility to provide clear information regarding the source
and intent of funds to be held in a Holding Account.
iii) Holding Accounts that exceed the maximum indicated by this policy require that the
responsible Committee, through its Chair, provide a plan to the Executive Director to disburse
funds in a timely manner and in a way that is consistent with the mandate of Science Atlantic.
iv) Each Holding Account shall be designated with the Committee’s name or the name of the
purpose for which the funds are being held.
v) Each deposit shall be recorded with its source and/or purpose.
vi) The current balance and a financial report for a Holding Account shall be available from the
Executive Director on request.
vii) The balance of each Holding Account shall be made available with the organization’s yearend
financial statements.
4. Holding and Allowable Use of Surplus Funds
i) Surplus funds from Regular Activities
1. Activities eligible for funding are outlined in the Funding/Budgeting Policy in the Policy section
of the Science Atlantic website (https://scienceatlantic.ca/about/policies/#FP).
2. An activity budget must be submitted to and approved by the Executive Director prior to
release of funds from the annual budget or Holding Account.
3. If funds disbursed from the annual Science Atlantic operating budget are not used in full for
their intended purpose, the remainder must be returned to Science Atlantic operations and may
not be carried over to the next fiscal year or held in a Holding Account.
i) Should there be a surplus of institutional funding for an activity or event, the institutional
sponsor should be offered the surplus to the maximum of their original contribution before the
remaining surplus is deposited in a Science Atlantic Holding Account.
ii) Should there be a surplus from sponsorship or grant funding, the funds must be used in
accordance with the funder’s guidelines and must be deposited in a Science Atlantic Holding
Account.
iii) Surplus funds from other forms of fundraising including through sales of items at events or
other materials such as books must be deposited in a Science Atlantic Holding Account.
ii) Special Purpose Funds
Approval for all forms of fundraising for special purposes must be obtained from the Executive
Director prior to the commencement of fundraising. Approval is determined according to the
following:
1. The activity conforms to all applicable laws, regulations and the mandate of Science Atlantic.
2. The activity does not conflict with any other current or planned Science Atlantic fundraising
activity.
3. If more than one branch of Science Atlantic wishes to seek funding from the same source, the
Executive Director shall inform all concerned parties and a resolution will be reached before any
solicitation is made.
4. The projected sale of conference T-shirts, coffee mugs, water bottles, etc. should be included
as part of the conference budget.
5. Funds from fundraising must be deposited in a Science Atlantic Holding Account.
6. These funds must be used in accordance with the purpose stated to the donors when the
funds were raised.
Charitable donations from individual donors
1. Charitable donations will be held in the Holding Account that most closely corresponds to the
wishes of the donor.
2. The donor should clearly designate where the funds are to be channeled (e.g., “for ABC
conference”; “for XYZ Committee use”).
3. If there is no designation, the funds will be included as part of the general fundraising income
for Science Atlantic.
4. To be eligible for a charitable donations receipt, the donation must be made to Science
Atlantic either by cheque delivered to the Science Atlantic office or online via
www.CanadaHelps.org.
Income from sales (e.g., of books, calendars, etc.)
1. Sales income must be held in a Holding Account.
2. Any plan to sell products must receive prior approval from the Executive Director and must be
in compliance with applicable laws and regulations
3. If the funds generated are for general Science Atlantic use, the income will be recorded as
general operating income.
5. Accumulation and Disbursement of Funds
i) Each Committee may accumulate a Holding Account surplus up to $7,000 for regular
activities.
ii) A request for funds for Science Atlantic activities shall automatically result in first drawing
from the surplus held in the relevant Holding Account if that amount is over the threshold
stipulated in 5.i.
iii) Money held in a Holding Account shall be released upon application to and approval by the
Executive Director and Committee Chair indicating the purpose for which the funds will be used.
iv) Should the Executive Director deem the purpose not fitting with the Science Atlantic mandate
or the specifications of the donors, approval from the Board shall be required for release of the
funds.
v) Should a conference exceed its approved budget due to expenses that were not included in
that approved budget, Holding Account funds will not be used to cover the conference’s deficit.
6. Other
i) Deviation from this Policy requires prior written approval of the Science Atlantic Board.
This Policy will be reviewed by the Science Atlantic Board no less than every five years.
Approved by Council April 2010
Revised April 2013
Revised April 2018