Who this is for
Boards, treasurers and event committees of registered charities, and nonprofit organizations that hold fundraising events and are not sure what receipts they can issue.
The seven mistakes
-
Receipting the full ticket price. The receipt is for the eligible amount: price minus the value of the advantage the guest receives. Dinner, drinks, entertainment, a gift bag, a chance at a door prize. Price them before the event.
-
Ignoring the 80% rule. If the total advantage is more than 80% of the amount paid, the CRA considers there is no gift. No receipt can be issued for any part of it.
-
Forgetting the small-item allowance. Advantages worth up to the lesser of 10% of the payment or $75 can be ignored. A modest door prize usually fits; a dinner never does.
-
Issuing receipts as a nonprofit. A nonprofit organization that is not a registered charity cannot issue official donation receipts at all. Only registered charities can. Our guide on nonprofits versus charities explains the difference.
-
Receipting the wrong person. The receipt goes to the true donor, the person who paid. A company that buys a table and gives the seats to staff is the donor. A company’s payment may be sponsorship rather than a gift. See our sponsorship guide.
-
Mishandling auction items. An auction has its own rules. The fair market value of each item must be known to bidders in advance. A receipt is only possible for the part of a winning bid above that value. And only if the bid is high enough to pass the 80% test. Our silent auction guide covers it.
-
No records. The CRA expects the charity to keep records showing how the eligible amount was calculated for each event. A one-page calculation kept with the event file is enough; no calculation is not.
A worked example
Ticket $250. Dinner and entertainment valued at $150. Door prize worth $20 (within the small-item allowance, ignored). Advantage $150, which is 60% of $250, under the 80% ceiling. Eligible amount $100. Receipt $100.
One thing many people do not realize
The CRA’s own example: a $250 dinner ticket where the meal and entertainment are worth $150 gives a receipt for $100, not $250. And if the advantages had been worth more than $200, which is 80% of $250, no receipt could be issued at all. The CRA treats that as no real gift. The gala committee decides the receipt amount when it chooses the venue and the menu, not when it prints the receipts.
What to prepare
- The event budget: venue, catering, entertainment, prizes, per guest
- The ticket price and what each guest receives
- The charity’s registration number, or confirmation that the organization is a nonprofit and not a charity
- A template for the receipt showing the eligible amount
When professional help may make sense
Events that mix tickets, sponsorships and auctions, or an event run jointly with a nonprofit that cannot receipt. The receipting rules are the charity’s responsibility, and errors can affect its registration.
How Rex Tax may be able to help
Bookkeeping for charities and nonprofits, event accounting, and the receipting calculation prepared before the event. We do not provide legal advice on charity registration; the CRA’s Charities Directorate is the authority.
Official sources
- CRA: Fundraising events, issuing receipts
- CRA: Split receipting
- CRA: Differences between a registered charity and a non-profit organization
This guide is general information, not advice about your situation. It reflects the rules for the 2026 tax year. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.