The Kin Canada Foundation as a registered charity can issue tax receipts for donations. Since we are a charity in accordance with the guidelines set out by Canada Revenue Agency (CRA) there are some instances where the Foundation cannot issue receipts. The following descriptions, although not inclusive, attempt to deal with the most commonly asked tax receipting questions.
1. A charitable donation receipt can only be issued to the issuer of the cheque.
Unless the cheque issuer acts as an agent for collecting and remitting donations from various persons/parties (i.e., an employer of an employee fundraising initiative). Donation receipts can be issued to the persons/parties provided that the nature of the monies can be receipted and a complete and legible list of donor information is provided to the Foundation. (donor name, address and postal code)
A donation receipt cannot be issued in another name (i.e. on behalf of someone).
2. A charitable donation receipt can be issued for a Gift In Kind.
Gifts in kind include (but are not limited to) capital property, depreciable property, personal property, shares and inventory of a business. A gift in kind does not include a gift of services.
A donation receipt may be issued for the fair market (FMV) of the property/goods on the date it is received.
If the item is new and has been recently purchased, a receipt or invoice is adequate proof of FMV.
All property with a fair market value >$1,000 must be valued by a qualified appraiser independent of the donor and the Foundation.
3. A charitable donation receipt cannot be issued for services
Services include professional, business and personal services. Examples contributions of services include time, vacation rentals/time shares, accounting services, skills such as musical performances, etc.
4. A charitable donation receipt cannot be issued for sponsorships
Where a business gives cash or merchandise to the Foundation, and receives material business advantage, such as promotional or advertising services, the business has not made a gift according to CRA and the Foundation cannot issue a charitable donation receipt.
In these circumstances, the business can usually claim the cash payment or value of the merchandise as a business expense.