Charitable Receipt Policy
JDRF, like all other registered charities, must adhere to the Canada Revenue Agency (CRA) Income Tax Act when issuing charitable tax receipts. To learn more about charitable tax receipts visit cra-arc.gc.ca or contact your JDRF Regional Offi ce, as we are happy to answer your questions directly.
Please do not promise any kind of receipt without first discussing it with JDRF. For an event to receive tax receipts a Community Event Application must be filled out and approved by JDRF prior to the event. Issuing inappropriate charitable tax receipts can put our charitable status in jeopardy.
It is important that you understand the rules about tax receipts before you plan your community event. It is your responsibility to communicate decisions regarding tax receipts to the event participants. Please be sure you have discussed the situation with your JDRF representative and that you are clear about what can be receipted.
Q: Is there a minimum donation amount required for a tax receipt?
A: A minimum cash donation amount of $20 has been established by JDRF due to the various costs associated with receipting.
Q: Whose name goes on the tax receipt?
A: The receipt must be made out to the entity listed on the cheque or credit card. The individual who made the donation will be listed on the tax receipt.
If a corporation issues one cheque representing donations collected from its employees; for example for a workplace casual day or a bake sale, although the corporation’s name appears on the cheque, the gift was, in fact, that of the corporation’s employees. In this case, the corporation will not be issued the charitable tax receipt. JDRF can issue receipts to the specific donors ($20 and more) if a detailed listing is included, ie. name, address, date, amount, event, etc. The total receipts cannot add up to more than the cheque donated to JDRF.
Q: Can a receipt be issued for the price of a ticket to an event?
A: A charitable tax receipt may be issued for the purchase of a ticket to a charitable event, but NOT for the entire ticket price. The value of goods and services received (not including taxes), such as dinner or prizes will be deducted from the receipt amount.
As per CRA Guidelines, charities cannot receipt the full amount of a donation if there is a benefit attributable to the donor ie. dinner or golf. For example, a ticket purchased to an event that involves a dinner. The ticket purchase is $500 and the dinner fair market value is $150 as supported by an actual invoice. The purchaser did not receive additional benefits such as a gift bag.
Therefore the tax receipt amount would be $350.
Receipts cannot be provided for sponsorships as sponsors receive a marketing benefit. When a corporate logo is listed anywhere (i.e. program book, powerpoint, signage), this is considered advertising and a marketing benefit. JDRF will issue a tax receipt for a donation of $20 or greater. Tax receipts will be issued within 30 days of receipt of the full accounting of the event and deposit of monies being donated to JDRF. Even if the dinner costs are donated, the donor still received the full value of the dinner.
In promoting the event, please state that tax receipts will be issued for the allowable portion.
To receive a charitable tax receipt in this situation, ALL back up (invoices, bills, etc) and financial forms must be completed and provided before any tax receipts can be issued.
Please note: it is the fair market value (FMV) of the goods and services received and not the cost that will be deducted from the tax receipt amount. The FMV is the price that a customer would normally pay to receive that product or service.
Q: Can I receive a tax receipt for the proceeds of the sale of a product or
A: Yes, funds sent in as proceeds from the sale of a product or service are tax deductible to the seller, but not to the buyer.
Q: Can a receipt be issued for a donation of service?
A: No, a tax receipt cannot be issued for a service. Services include: legal work, graphic design, interior decorating, etc.
Q: What is a gift-in-kind and are they eligible for a tax receipt?
A: “Gifts-in-kind” are gifts of physical property and according to the CRA are eligible for tax receipts. A receipt may be issued for the value of an item before taxes. JDRF requests that organizations donating a gift-inkind provide an invoice stating the value (not cost) of the item, as of the the item, as of the date of the donation. A gift-in-kind does not include a gift of service. Gifts of art work must include a third party appraisal if valued at over $1000.
Q: Can sponsorship gifts receive a charitable tax receipt?
A: No, a payment from a business, for which the business receives a material benefit, such as promotion, tickets or advertising in return, cannot be issued a charitable tax receipt.
Q: Can a receipt be issued for the purchase of an auction item?
A: Yes, however the bid amount must exceed the value of the item by 20 per cent or more and the FMV is advertised/listed before bidding occurs. The amount of the receipt is equal to the difference between the bid amount and the value of the item. For example, if a necklace’s FMV is $100 and your bid is $125, then you would be entitled to a tax receipt for $25.
Q: Can a charity issue an official donation receipt when it receives a donation of a gift certificate?
A: No, the gift certificate is similar to a service and like a service, cannot be receipted.
Q: Can a receipt be issued for event expenses?
A: No, tax receipts cannot be issued for funds used to cover the costs of the Community Event or other administrative expenses incurred by the organizer.