Books are audited annually and submitted to Receiver of Revenue as law demands. CRC is governed by our Constitution which stipulates all financial matters.
“The Advisory Board”: means the Senior Pastor and Senior members of his Pastoral team.
The Financial Committee”: means the Financial Committee consisting of the Pastor and other persons as provided for in this Constitution.
The Church shall have the following specific purposes:
The financial matters of the Church shall be controlled by a Financial Committee consisting of the Pastor and at least two persons excluding the Pastor’s Spouse, which could include members of the Advisory Board, elected in accordance with the provisions of this Constitution. The Pastor may invite suitable members of the congregation to serve in an advisory capacity.
The Committee may determine and pay to its employees and Committee members fair and reasonable market related remuneration for services rendered and may, in addition, authorise the reimbursement to any person of any expenses actually and necessarily incurred in their capacities as members of the Committee or employees of the Church, or for the rendering of professional services by any professional person, whether a Board member or external party.
The Church has been established in accordance with this Constitution on the basis that it will qualify for tax exempt status in the Republic of South Africa under Section 10(1)(cN) of the Income Tax Act by virtue of conducting a Public Benefit Activity as contemplated in Section 30 of the Income Tax Act.
This Section II outlines various matters prescribed by SARS, which are required in order to qualify for, and continue to enjoy such tax exemption. Accordingly, the provisions of the Section II may only be amended in accordance with the same requirements as outlined in paragraph 8 to Section I of this Constitution, provided further that any such amendment shall be approved by SARS in order to be valid.
The purpose (as outlined in paragraph 4 to Section 1 of this Constitution), objectives and activities of the Church shall be strictly limited to a public benefit activity determined by the Minister of Finance as contemplated in Section 30(2)(a) of the Income Tax Act.
The main activity of the Church shall be the promotion and/or practice of religion which encompasses acts of worship, witness and community service based on a belief in a deity contemplated in a recognized creed, as further qualified in accordance with Section 1 and Section II to this Constitution. The object, purpose and activities of the Church shall at all times comply with such conditions as the Minister of Finance may prescribe by way of regulation to ensure that the activities and resources of the Church are directed in the furtherance of its objects.
Save for the provisions outlined in 4 below, the purpose, object and activities of the Church shall be carried out in a non-profit manner, meaning that its activities shall not be governed by a primary money making motivation. The Church shall ensure that its activities (or substantially the whole thereof) are conducted only in the Republic of South Africa. The Pastor of the Church shall ensure that he submits to SARS a copy of any amendment to this Constitution within a reasonable period after such amendment has been passed, and in any event no amendment to this Section 1I shall be of any force or effect unless approved by SARS. The Church shall ensure that within a reasonable period it is registered in terms of Section 13(5) of the Non-Profit Organizations Act, 1997 (Act No 71 of 1997), and complies with any other requirements imposed in terms of that Act.
The Church shall ensure that at least three persons who are not connected persons in relation to each other, accept the fiduciary responsibility of the Church in favour of SARS. Such persons shall include the Pastor and any person who has been chosen to act as the Leadership who have accepted such fiduciary responsibility at the request of the Pastor. As far as is possible, such nominated persons should to some extent be involved with the administration and financial affairs of the Church.
The persons who accept fiduciary responsibility for the Church with regard to SARS shall furnish any such documentation or undertakings, and furnish any such information as may be requested by SARS from time to time in the course of ensuring that the Church maintains its tax exempt status.
The Church shall ensure that its Financial Committee invests surplus funds prudently, and in any event shall be prohibited from distributing any of the funds of the Church to any person (otherwise than in the course of undertaking any public benefit activity referred to in 1 above) and is required to utilize its surplus funds solely for the object for which it has been established.
The Financial Board shall ensure that any remuneration paid by the Church to any employee, office bearer, member or other person is fair and market related having due regard to the responsibilities, nature of services and general value added by such person who is remunerated, and in any event such remuneration shall not be excessive taking into account what would reasonably be earned by such a person in the open market. Any books of account, records or other documents relating to the Church shall
Where kept in book form be retained and carefully preserved by the Financial Board for a period of 4 (four) years after the date of the last entry in any book; or where not kept in book form be retained and carefully preserved by the Financial Board for a period of 4 (four) years after completion of the transactions, acts or operations to which they relate. The Financial Board of the Church shall ensure that it complies with all such financial reporting requirements as may be determined by SARS from time to time. The Church shall make available for the inspection by a duly authorized official of SARS any books of account, records or any other documents relating to the Church, to answer any questions requested by SARS relating to the Church, as well as attending at any time and place appointed by SARS for the purposes of examining documentation.
Notwithstanding the provisions of 6.3 and 6.4 above, the Church, as represented by the Pastor and its Leadership, shall be entitled to fair administrative action and treatment which is afforded to it in terms of the Constitution of the Republic of South Africa, and other relevant legislation. To the extent that the Church, in carrying out its activities, provides funds to other legal entities, associations or persons which carry on a public benefit activity as approved in terms of Section 30 of the Income Tax Act, the Financial Board shall take all reasonable steps to ensure that the funds so provided by the Church are utilized for the purposes of the public benefit activity contemplated by such recipient legal entities, associations or persons.
In the event of the Church at any time ceasing to exist, or should the Leadership in accordance with the provisions of Section 1 of this Constitution decide to terminate the activities of the Church, all assets owned by the Church must be transferred to a similar public benefit organization which has been approved in terms of Section 30 of the Income Tax Act. In the event that for whatever reason SARS has withdrawn its approval to the Church for the tax exemption as contemplated in this Section 1I, the Financial Board shall take all reasonable steps to rectify its activities in order for the approval of SARS to be re-obtained.
In the unlikely event that SARS does not reapprove the tax exemption contemplated herein for valid and legal reasons, the Church shall within 3 (three) months, or such longer period as SARS may allow, take reasonable steps to transfer the remaining assets of the Church to any other organization which is approved in terms of Section 30 of the Income Tax Act, and which is not a connected person in relation to the Church.