Cash/cheques

A charitable donation tax receipt will be issued by the Quebec Veterans Foundation (QVF) for regular donations of money. The minimum amount for a receipt is $25.00.

Services

Canada Revenue Agency (CRA) disallows donations of services for charitable donation tax receipts. Contributions of services (including Gift Certificates) are not property and do not qualify as gifts. The business can bill the QVF 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. The business (donor) must account for the services as business income.

The individual can bill the charity for the service and receive payment, at which time the individual can donate back the amount received for the service. The individual must report the service as taxable income. Gift certificates for services cannot be receipted. The amount must be included in the budget for prize acquisition.

Sponsorship

If a business sponsors a fundraising event, program, service, or activity under the Canada Revenue Agency rules, the QVF cannot issue an official charitable donation tax receipt, because the sponsor receives a significant promotional benefit. The QVF will provide a letter of acknowledgment as a receipt for the sponsorship.

Gifts In-Kind

Where the QVF 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. If the item was purchased within three years, the receipt will be the lesser of the cost or fair market value. A charitable donation tax receipt will not be issued for auction items in which the value of the item is not clearly ascertainable. This includes dinners at a private resident or certain personal items such as sports paraphernalia.

The QVF is responsible for reporting the fair market value of the gift in-kind on the official charitable donation tax receipt. CRA indicates that the fair market value is the “highest price in dollars that the property would bring in an open and unrestricted market” between a willing buyer and seller who are both informed, prudent, and acting at arm’s length. To determine the fair market value of a gift in-kind, an independent appraisal is required for items over $1,000.00. For individuals who create artwork as a hobby, only the value of the inventory used to make the art piece is eligible for a charitable donation tax receipt. Time cannot be factored in the value.

Securities

A charitable donation tax receipt will be issued by the QVF for the closing value of the publicly traded security on the day the QVF receives the security, net of any brokerage charges incurred.

Receipts for fundraising events

1. Tickets

In accordance with the CRA, the QVF must calculate the portion of the purchase price that is eligible for an official charitable donation tax receipt by determining the fair market value of admission to the fundraising event.

Where there is a fundraising dinner, the value of a comparable meal provided by a comparable facility determines the amount of the advantage.

2. Auction

The QVF cannot issue a charitable donation tax receipt to people who purchase items at an auction unless the payment exceeds 125% of the fair market value of the item and the value is clearly ascertainable and made known to bidders in advance.

For more information: https://www.canada.ca/en/services/taxes/charities.html