Transactions that do not qualify as gifts for Canadian Income Tax purposes

To avoid improper receipting, a charity must know when it can and cannot issue a donation receipt. A donation receipt can be issued only if there has been a voluntary transfer of property by way of gift. Property includes tangible items such as cash, stocks, computers, and sports equipment.

Charities often make mistakes regarding the type of gifts that are receiptable. For example, a charity cannot issue an official donation receipt for a “gift” of service. Gifts of service (donated time, skills, and effort) provided to a charity are not property, and therefore do not qualify as gifts for the purposes of issuing official donation receipts. For more information see, What is a gift?