Charity gala? 7 tax-receipt mistakes to avoid before you sell a ticket
Only a registered charity can issue official donation receipts, and only for the eligible amount.
Tax guides › Nonprofits and fundraising
Charities and nonprofits follow different rules, and the difference matters most at fundraising events. These guides explain receipting for galas and auctions, sponsorship, the filings each kind of organisation owes, and the records that keep registration safe.
They are written for volunteer treasurers and boards as much as for staff.
Only a registered charity can issue official donation receipts, and only for the eligible amount.
Three tests, any one of which means the return is required.
A gift is a voluntary transfer with nothing of value coming back. Sponsorship is a payment in return for advertising or promotion of the business.
For every fundraising activity keep five records. The donor or payer list with amounts and dates.
They are not the same thing. A registered charity is registered with the CRA and has a charitable registration number.
Five things. Not filing the T3010 within six months of the fiscal year end, which the CRA says can lead to revocation.
Set and display the fair market value of every item before bidding opens; without that no receipt can be issued.
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