August 01, 2010
There are 3 types of anonymous gifts. The first one is that the charity knows the name of the donor but the donor requests that the charity not to divulge the identity of the donor so others will not know. The receipt (which is not a public document) would have the donors name on it so there is nothing special about that. The second one is that the donor requests that you keep their name secret but it is expecting you to let everyone know who made that anonymous gift!. The third type of anonymous gift is truly anonymous - the charity does not even know the name of the donor. The problem is that an official donation receipt needs to have the name of address of the donor. One way to accomplish this is to follow the procedures set out below by CRA. Another is to have the funds flow through a foundation or another charity which would provide the receipt and the foundation/charity would disburse the funds to the registered charity.
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No. Many foundations or charities do not understand that a Canadian registered charity does not issue an official donation receipt to another Canadian registered charity (or qualified donee ie. organization that can issue an official donation receipt) when it receives cash or gifts in kind from it. When a Canadian registered charity receives a donation from an individual, business, foreign charity, or martian it can issue an official donation receipt. Now the martian and the foreign charity probably will not be able to use such a receipt but you can issue it anyway!. Here is a note from the Canada Revenue Agency on the subject of “Gifts from other registered charities”
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No. This may come as a surprise for some but see CRA’s explanation.
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CRA’s document “Gifts and Income Tax” (P113(E) Rev. 09) is helpful for Canadian charities understanding what is a “gift” that can be receipted. The document is located at http://www.cra-arc.gc.ca/E/pub/tg/p113/p113-e.html
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Third party fundraisers, especially if run by volunteers, can be a very effective and efficient way to fundraise. However, charities are not allowed to just outsource receipting functions. Here is a document from CRA on third party fundraisers and receipting
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No. Here is CRA’s view on why such a payment cannot be receipted.
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Posted by Mark Blumberg on 08/01 |
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Canadian Charity Law
Alberta requires some charities to register under its Charitable Fund-raising Act including those who raise $25,000 or more per year, or use a fundraising business to fundraise for the charity. There are exclusions if your charity only fundraises from family or members, you only ask for in-kind goods (rather than cash) or you only do gaming such as bingo under the Alberta Gaming and Liquor Commission. If you meet the registration requirements, and do not fit within one of the exceptions, then your charity must register with the Alberta government, even if you are registered with the Charities Directorate of the Canada Revenue Agency.
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