Official Tax Receipts

Canadian charities rely on donor support and so it is imperative that your charity understands and follows the required procedures to record its donation income and issue official tax receipts. Canada Revenue Agency may reject a donor’s receipt if it does not meet the criteria as set out in Section 3501 of the Regulations to the Income Tax Act.

Services Offered

  • Review of basic format of tax receipt to ensure it meets with CRA requirements
  • Review and set up of recordkeeping procedures relating to donations received
  • Prepare tax receipts for cash gifts
  • Prepare tax receipts for gifts in kind
  • Assistance to ascertain the eligible amount and prepare donation receipts for fundraising events

Common Receipting Mistakes

  • A registered charity should not issue official tax receipts to other registered charities for gifts received from them as they are tax exempt entities and do not require a receipt.
  • An official tax receipt cannot be issued for the value of services donated to the charity. If the Vendor wants to donate their services, they must issue an invoice to the charity and then make a cash donation to the charity that is sufficient to cover the cost of the invoice. The charity can then pay the Vendor with the cash received and issue a tax receipt for the cash donation.