In our latest webinar, Mastering Official Donation Receipts for Income Tax Purposes, Senior Manager Megan Bloskie and Manager Qiao Rees provided crucial guidance for registered charities on complying with CRA regulations when issuing donation receipts. Below are the key takeaways to ensure your charity stays compliant.

Who Can Issue Official Donation Receipts?

Only Canadian registered charities and qualified donees, like municipalities and Canadian amateur athletic associations, can issue Official Donation Receipts for Income Tax Purposes. A not-for-profit organization that is not a registered charity or other qualified donnee cannot issue Official Donation Receipts for Income Tax Purposes.

What Information Must Be Included on Donation Receipts?

Donation receipts must contain specific information, including the donor’s name, the donation amount, and the charity’s details. For non-cash gifts, the receipt should include a description of the item and, if applicable, appraiser information. A complete list of the requirements can be found here.

How to Handle Split Receipting and Donor Advantages

When a donor receives a benefit (e.g., a meal at a charity event), the value of that “advantage” must be deducted from the total donation amount. Split receipting rules apply when the advantage is less than 80% of the donation. If it exceeds 80%, a donation receipt cannot be issued.

Determining Fair Market Value for Non-Cash Gifts

For non-cash donations under $1,000, a qualified member of the charity can estimate the value. For donations over $1,000, it’s advisable to get a professional appraisal to meet CRA guidelines.

Issuing Receipts for Fundraising Events

For events like auctions, fundraising dinners, or golf tournaments, receipts can be issued for donated items and winning bids, provided they meet CRA’s split receipting and fair market value rules.

If you missed the live webinar you can view all our previous webinars on the HW YouTube Channel.