Do we need an appraisal when valuing the fair market value of a donation to a charity in Canada?

CRA recommends that if a donation of a non-cash (in-kind) item is being made to a Canadian registered charity and it is worth more than $1000 that it…

What is the “deemed” fair market value rule for donations to Canadian registered charities?

In some cases when a person is donating items (not cash) to a charity the charity does not give a receipt for the amount of the FMV of the item but…

Can a Canadian registered charity correct or replace a lost or incorrect official donation receipt?

Yes.  But it must be done properly.  Here is a note from CRA on the subject.…

What are the consequences for issuing incorrect or false official donation receipts?

It obviously depends.  If the official donation receipt is in some small way incomplete it could be a penalty equal to 5% of the eligible amount…

Can a gift out of inventory from a business to a charity qualify for an official donation receipt?

Generally yes as long as any advantage is subtracted.  See this note from CRA.…

Canadian charities and auctions – when can you issue a tax receipt wih respect to an auction?

When a person donates an item to a charity for an auction the charity can give the donor a receipt for the eligible amount of the donation (fair…

Can a Canadian charity issue an official donation receipt for a directed donation?

If a donor provides a donation with a request that those funds go to a specific person or family then in general a tax receipt would not be…

Can a Canadian registered charity provide an official donation receipt for membership fees?

It depends on whether the member is receiving valuable benefits and the value of those benefits. “Summary Policy Date September 3, 2003…

What are gifts of certified cultural property to a Canadian registered charity

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. …

Bequests – how are gifts to Canadian charities under a will in the testators year of death handled?

CRA’s document “Gifts and Income Tax” (P113(E) Rev. 09) is helpful for Canadian charities and taxpayers understanding what is a “gift” that can be…

Should my charity issue an official donation receipt for a conditional gift?

In general you should not issue an official donation receipt for a conditional gift unless you are sure that the condition will be fulfilled. If in…

How is art donated by an artist to a Canadian registered charity treated for tax purposes?

CRA’s document “Gifts and Income Tax” (P113(E) Rev. 09) is helpful for Canadian charities and taxpayers understanding what is a “gift” that can be…

Can a Canadian registered charity issue an official donation receipt for an anonymous gift?

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…

Does a Canadian registered charity ever issue an official donation receipts to another reg. charity?

No.  Many foundations or charities do not understand that a Canadian registered charity does not issue an official donation receipt to another…

Can an official donation receipt be issued by a charity for of a lottery ticket?

No. Here is a slightly longer version of “no” from the CRA: Can an official donation receipt be issued for the purchase of a lottery…

Does the Fair Market Value of an item donated to a Canadian charity include the taxes paid?

No. This may come as a surprise for some but see CRA’s explanation. Policy Commentary Release Date August 19, 1992 Reference Number CPC - 006…

Can official donation receipts be sent by registered charities by email?

Can official donation receipts be sent by email? Yes. However a registered charity should take the following precautions to protect its electronic…

CRA document “Gifts and Income Tax” helpful for Canadian registered charities when issuing receipts

CRA’s document “Gifts and Income Tax” (P113(E) Rev. 09) is helpful for Canadian charities understanding what is a…

Third Party Fundraisers by Canadian Charities and Receipting of Donations

Third party fundraisers, especially if run by volunteers, can be a very effective and efficient way to fundraise.  However, charities are not…

Is a payment to a registered charity in lieu of paying union dues considered to be voluntary/gift?

No.  Here is CRA’s view on why such a payment cannot be receipted. Policy Commentary Release Date June 23, 1993 Reference Number CPC -…

Macleans article “An artful scheme” on use cultural property as part of tax shelter scheme

Chris Sorensen of Macleans recently wrote a piece entitled “An artful scheme: One firm’s pitch to help people use a tax shelter by buying and…

Tax preparer in Ontario guilty of charity tax fraud scheme

The CRA is cracking down on tax preparers and others who issue false charitable donation receipts. Canada Revenue Agency News Release…

Charges laid against promoter of art-donation scheme

The CRA has laid charges against a promoter of an art donation scheme in which there was a donation of overvalued artwork to the Municipality of…

Accountant liability for recommending charity tax shelter gifting scheme – Lemberg v. Michael Perris

This case involves an accountant, Mr. Michael George Perris, recommending a charity tax shelter scheme to his client that was unsuccessful.  The…