One of most important benefits of being a registered charity is the ability to receive gifts and to issue official donation receipts. CRA is having a webinar on the topic, and it is probably worth attending. If you want a more in-depth course on receipting, we have one here.
Here is information on the upcoming CRA webinar:
Understanding gifting and receipting
- It is important to understand the gifting and receipting rules so your charity can be confident when receiving gifts and issuing official donation receipts.
Gifts
A gift is a voluntary transfer of property without valuable consideration to the donor. Property can be broken into two categories:
- Cash gifts: include debit, cheque and credit card payments
- Non-cash gifts: other tangible gifts that could include capital property (equipment, land, buildings, stocks, etc.), personal property (artwork, furniture, clothes, etc.), and life insurance policy
To determine if a gift has been made, consider the following questions:
- Was the gift made voluntarily?
- Was there a transfer of property?
- Was the gift directed to a specific person, family, or non-qualified donee?
- Did the donor receive an advantage?
It is important to review these questions before deciding whether an official donation receipt can be issued for a gift received by your charity.
Receipts
For donors, official donation receipts are required to claim a tax credit or deduction. Under the Income Tax Act, only qualified donees can issue official donation receipts for gifts they receive from individuals and corporations.
Other than registered charities, the following types of organizations are also qualified donees:
- Registered Canadian amateur athletic associations
- Registered national arts service organizations
- Registered journalism organizations
- Municipalities
- Municipal or public bodies performing a function of government in Canada
- Registered universities outside Canada
- Low-cost housing corporations for the aged
- His Majesty in right of Canada, a province, or a territory, and the United Nations and its agencies
- Registered foreign charities that have received a gift from His Majesty in right of Canada
You can find a listing of qualified donees at canada.ca/charities-giving. The listing includes registered charities’ T3010 information.
Upcoming webinar
If you want to learn more about receiving gifts, issuing receipts, and get answers to questions you may have on the topic, we invite you to attend our upcoming webinar.
This webinar will take place:
- March 25, 2025: 2 English sessions
- March 27, 2025: 1 English and 1 French session