Here is a reminder from the Charities Directorate of CRA that one registered charity should not issue an official donation receipt to another registered charity.  So for example if a foundation gives another registered charity funds the recipient charity does not provide an official donation receipt.

http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/gfts/rgstrd-chrts-eng.html
Gifts from other registered charities

A registered charity should not issue official donation receipts for gifts (cash or gifts-in-kind) it receives from other registered charities nor should other registered charities insist on receiving official donation receipts. Official donation receipts that bear a charity’s registration number and other information are required for tax deduction or credit purposes only; registered charities do not pay income tax and, therefore, do not need a donation receipt.

A charity can acknowledge gifts received from other registered charities by way of a letter or ordinary receipt – one that does not state that it is an official receipt for income tax purposes.

The charity should still provide its registration number to donor charities for their reporting requirements.

Registered charities must keep track of gifts received from other registered charities as these amounts are required to calculate the disbursement quota.

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Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario.  To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit https://www.canadiancharitylaw.ca or http://www.globalphilanthropy.ca  Mark can be contacted at mark@blumbergs.ca or at 416-361-1982.

This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.