Deeds of Covenant

A method whereby friends of the Church can greatly increase their contributions to the Funds without additional cost to themselves is provided by the Income Tax Acts and consists in the recovery of the tax already paid on subscriptions given.

The practical effect of this method is best seen by an example: Suppose that a person pays £5 per annum in to the Sustentation Fund (or any other fund). He decides to sign a Deed of Covenant under which he continues to pay in cash the same amount as before, i.e., £5 per annum. As long as Income Tax remains at 8/6 in the £ the General Treasurer would be able to recover Income Tax amounting to £4 13/11. This would make the total amount annually received by the Church, £9 13/11. The important point is that although there has been an increased benefit to the Church, the donor has no increased expense.

The following rules apply to the scheme:—

1. Deeds should be granted only by those who pay Income Tax at the full standard rate (i.e., 8/6 in the £) and tax equivalent at least to the gross annual contributions (i.e., £9 13/11 in the above case).

2. Deeds must be granted for at least 7 years but can be made for a longer period and are made to terminate on the death of the donor.

3. At the time of each payment the donor will be required to sign an Income Tax Certificate.

4. Deeds of Covenant forms can be obtained from the General Treasurer who will also send the Income Tax Certificate from year to year.

Deed of Covenant.

*The above is only a facsimile.

I,

(Full Name)

of

(Full postal address)

DO HEREBY COVENANT AND AGREE that for the period of
(must be more than six)years, or until my death (whichever should be the shorter period) I
shall pay to the General Treasurer of the Free Presbyterian Church
of Scotland a sum which, after deduction of Income Tax at the
Standard rate, will amount to

(Sum in words)

for behoof of the

(State the Fund or Funds and the sum to be given to each)
the first of the said payments to be made on the
19
and to be entered in the books of
the Church as my annual subscription for the year ending 5th April
following and so forth until payments have been made by me.In witness whereof I have subscribed these presents at
this day of
nineteen
hundred and
in the presence of the witnesses
undernamed and designed hereto with me subscribing.

Signature

Signature (Witness)

Address

Occupation

Signature (Witness)

Address

Occupation

DONALD MACLEAN,
Convener, Finance Committee.