For detailed and clearly written information on requirements for issuing chatitable receipts please go to the CRA Website at http://www.cra-arc.gc.ca/tx/chrts/prtng/rcpts/menu-eng.html
We have attached for your information a summary of the information required on donation receipts and a list of some of the infractions that will give rise to financial penalties. A CRA reference has been provided for each item in case you would like more information.
Canada Revenue Agency Donation Receipt Requirements (effective March 2004)
The following information must be included on every receipt issued for a cash donation:
The following information, in addition to that noted above for cash donations, must be included on every receipt issued for a gift-in-kind donation:
Notes on issuing charitable donation receipts:
- Receipts can only be issued for gifts of property. A donation receipt cannot be issued for a gift of services as services are not property. Guideline RC4108
- The fair market value of all non-cash gifts must be determined (IT 297 R2 Para 6). We recommend that a charity obtain an independent appraisal for all gift?in?kind donations in excess of $1,000.
- Charities must retain a paper copy of every receipt issued, or be able to print a copy of the receipt without inputting any new data required on the receipt. Guideline RC4108
- Copies of lost donation receipts must be marked “Cancelled”. All copies of a spoiled donation receipt must be retained by the charity and marked “Cancelled”. Guideline RC4108
- The annual information return (T3010A) must be filed within six months of the year end.
Fines and penalties included in the March 2004 budget and effective January 1, 2005 are as follows: