As a registered charity in Canada, Windsor Christian Fellowship's Financial Services Department is responsible to issue official donation receipts that provide donors with tax deductions or tax credits. Determining the eligibility is done in consultation with Canada Revenue Agency and WCF's governing policy and procedures. If you have any questions on charitable giving please contact the following:
WCF Financial Services Representatives:
Generally, a gift is made when all of the following conditions are met:
1. There is a transfer of property; usually cash to the charity
2. The transfer is voluntary and
3. The transfer is made without any expectation in return. No benefit of any kind may be provided to the donor or to anyone designated by the donor.
1. Where a charitable donation is provided by way of a cheque written on an account held jointly by spouses, meaning both names appear on the cheque, the charity can issue the official donation receipt in either or both names, regardless of how the cheque is endorsed.
2. Where a registered charity receives a cheque from a corporation and is subsequently asked to issue the official donation receipt in the name of an individual who controls the corporation, the charity must refuse to issue the receipt to the individual. The charity may only issue a receipt to the individual if there is evidence to show that the individual is the true donor.
Contributing Service such as time and effort is not a transfer of property and therefore cannot be issued an official donation receipt. However, a charity can pay an individual such as a lawyer, accountant, or entertainer for services rendered and later accept the voluntary return of all, or part of, the payment as a donation. In this situation, the charity can issue an official donation receipt, but the donor must declare this income when filing their income tax return.
The term gift in kind refers to property other than cash, however does not include a gift of service as referenced above. A gift in kind can be issued an official tax receipt for the fair market value of the gift on the date it was donated. Fair market value of a gift worth more than $1000.00 must be established by an appraiser who has no material interest in the property being given and is not associated with the donor or with the charity. It does not include any amounts paid or payable to other parties such as sales agents or sales taxes such as HST.
A charity cannot issue an official donation receipt to a business for the fair market value of a gift out of inventory. Examples include a gift of bread from a bakery, or an item from the inventory of a dealer who buys and sells art, antiques, rare books or other cultural property. Where a business donates goods out of its inventory to a charity, it has automatically received a deduction from income through its cost of goods sold. To claim a charitable tax credit or deduction, the business also has to include as income an amount equivalent to the gift's fair market value.
Where a business gives cash or other property it may not necessarily be a gift to the charity. If the expectation of the transaction is to receive a business advantage, such as promotion or advertising, the charity cannot issue an official donation receipt, as this is not considered a gift. For taxation purposes, the business can claim the transaction as a business expense. The determination of whether a gift or a business expense will depend on disclosure of the transaction. Always check with Financial Services before a commitment is made regarding the issuance of any official donation receipt.
WCF issues receipts in accordance with Canada Revenue Agency (CRA) regulations which require that each official receipt issued by a charity contain the following information:
1. A statement that it is an official receipt for income tax purposes
2. The charity's registration number, name and address in Canada as recorded with Revenue Canada, Charities Division
3. The place or locality where the receipt was issued
4. The day on which or the year during which the conation was receive or, where the property other than cash is received, the actual date of receipt
5. The day on which the receipt was issued when it differs from the date of the donation
6. The amount of the gift
7. The name and address of the donor
There is no regulation requiring the issuance of official receipts within a particular time frame, but it is suggested that they be issued at least by the last day of February following the year during which the gift was made.
Windsor Christian Fellowship does not issue official donation receipts to other charities; charities do not pay taxes, therefore do not need an official donation receipt. Windsor Christian Fellowship will issue a business receipt to acknowledge the gift if requested by the other charity. A business receipt may also be issued upon request acknowledging other transactions that are not eligible for an official donation receipt such as contributions of service (recognition only) and sponsorship where there has been a clear advantage to the business. Determining whether a business receipt or official donation receipt will be issued must be discussed in advance with the Financial Services Department.