1. Pre-printed official receipts with errors can still be used
Are you involved with a registered charity or qualified donee? Canada Revenue Agency (CRA) recently advised that official donation receipts will need to contain CRA’s updated website address, canada.ca/charities-giving, as of March 31, 2019. If your organization has a substantial number of pre-printed receipts, all hope is not lost! CRA takes the administrative position that pre-printed receipts containing errors, such as CRA’s old website address, can still be used if the registered charity or qualified donee crosses out the error, adds “the correct information using a stamp (if possible),” and makes the change “on both the donor’s and the duplicate copies.”
2. A registered charity can issue an official receipt to an anonymous donor
Ever wonder whether anonymous donors are eligible to receive official receipts? Although the federal Income Tax Act requires official receipts to contain the donor’s name and address, according to CRA, it will allow registered charities to issue official receipts to anonymous donors if:
3. CRA recommends registered charities encrypt emailed receipts
Does your registered charity send receipts to donors via email? Make sure you are following the CRA’s recommendations, including the recommendation that emailed receipts “be encrypted and signed with an electronic signature.”
4. Registered charities don’t have to give you a receipt for your donation
Registered charities aren’t obligated to issue a receipt for your donation. In fact, many registered charities choose not to issue receipts unless a certain amount is donated. CRA’s website provides more information on this topic here.
5. Registered charities can issue official receipts for donations of gift cards
Are you one of the many Canadians who plan to obtain and donate their $25 Loblaw gift card from the bread price fixing scandal to a local food bank? Wondering if you can get a receipt? According to CRA Guidance, CG-007, Donation of gift certificates or gift cards, where a gift certificate or gift card “has been issued for consideration and the terms permit its assignment, upon donating the gift certificate to a registered charity, a holder who has purchased or otherwise acquired a gift certificate, can receive an official donation receipt for the eligible amount of the gift.” Assuming the terms of the Loblaw Card Program meet CRA’s requirements, local food banks will likely be able to issue official receipts for gift card donations.