This includes dinners at a private resident or certain personal items such as sports paraphernalia. A charitable donation tax receipt will not be issued for auction items in which the value of the item is not clearly ascertainable. If the item was purchased within three years, the receipt will be the lesser of the cost or fair market value. Where the Foundation agrees, a charitable donation tax receipt can be issued for items donated by individuals, which are accompanied by a receipt of purchase from the original supplier, or appraisal. The Foundation will provide a letter of acknowledgment as a receipt for the sponsorship. If a business sponsors a fundraising event, under the Canada Revenue Agency rules, the Foundation cannot issue an official charitable donation tax receipt, because the sponsor is receiving a significant promotional benefit. The minimum amount for a receipt is determined from time to time by the Foundation. Cash/chequesĪ charitable donation tax receipt will be issued by the Foundation for regular donations of money, if requested. The business (donor) must account for the services as business income. The business can bill the Foundation for the service and receive payment (if approved within the budget of the Event), at which time the business can donate back the amount received for the service. Contributions of services (including Gift Certificates) are not property and do not qualify as gifts. ServicesĬanada Revenue Agency disallows donations of services for charitable donation tax receipts. As a result no benefit is obtained from the charitable donation tax receipt. If a charitable donation tax receipt is requested by the business, then they are required to include the fair market value of the donated property as income, which is then offset by the deduction of the charitable donation. However, if a business requires a charitable donation receipt, the Foundation will accommodate the request.Ī business that donates inventory can deduct the cost of the inventory as a business expense. The Foundation will provide a letter acknowledging the items donated. Such contributions are considered a business expense. In general, there is no benefit to a business to obtain a charitable donation tax receipt for a donation of items from inventory. Detailed guidelines can be found on CRA’s Charities and Giving website: A. London Health Sciences Foundation, like all other registered charities, must adhere to the Canada Revenue Agency (CRA) Income Tax Act when issuing charitable tax receipts.
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