Canada Revenue Agency Guidelines
The Hanover and District Hospital Foundation is grateful to each of our 2019 Gala donors. We are please to receipt every donation under the guidelines of the Canada Revenue Guidelines. To ensure proper receipting we must follow the regulations set forth by the CRA.
Donors of items to be sold at our Auction may be entitled to official donation receipts if the gift complies with the CRA's regulations and if a fair market value can be established under CRA regulations. CRA will not accept an evaluation made by the donor. A donor who purchases an item to donate to the Auction at wholesale or retail cost must supply a detailed bill of sale, invoice, statement, or equivalent with evidence that he/she has paid for the item. A packing slip will not suffice. A donation receipt can be issued if the claim is supported by such documentation but only for the pre-tax amount.
Gifts of art, jewelry, memorabilia, fine wines and the like (where a fair market value assessment is not readily available) must be appraised by an independent third party who is generally recognized as having expertise in the particular field in question, and who is acceptable to both the donor and the HDH Foundation. Appraisals for insurance purposes are not acceptable to CRA. Depending on the value of the piece(s), HDH Foundation may require two or more third party appraisals. As well,
Hospitality gifts, such as dinners or cocktail parties at people's homes and similar items, are considered by CRA to have no comparable market value and therefore a receipt can only be issued for the actual cost of the dinner components where supported by appropriate invoices, receipts or their equivalents.
Gifts of time at vacation properties and the like are considered by CRA to be a gift of service as the title to the property has not changed. Gifts of services, such as tutoring, accounting and hairdressing are not eligible for a receipt. Gift cards and certificates are not eligible for a tax receipt.
Priceless gifts do not qualify for donation receipts. Examples might include appearing as a guest on a radio show, or riding on a float in a parade. By their very nature, such gifts do not have a fair market value.
For more information on what is considered a gift by the CRA Click HERE
For more information on determining Fair Market Value and Split receipting Click HERE
Donors of items to be sold at our Auction may be entitled to official donation receipts if the gift complies with the CRA's regulations and if a fair market value can be established under CRA regulations. CRA will not accept an evaluation made by the donor. A donor who purchases an item to donate to the Auction at wholesale or retail cost must supply a detailed bill of sale, invoice, statement, or equivalent with evidence that he/she has paid for the item. A packing slip will not suffice. A donation receipt can be issued if the claim is supported by such documentation but only for the pre-tax amount.
Gifts of art, jewelry, memorabilia, fine wines and the like (where a fair market value assessment is not readily available) must be appraised by an independent third party who is generally recognized as having expertise in the particular field in question, and who is acceptable to both the donor and the HDH Foundation. Appraisals for insurance purposes are not acceptable to CRA. Depending on the value of the piece(s), HDH Foundation may require two or more third party appraisals. As well,
Hospitality gifts, such as dinners or cocktail parties at people's homes and similar items, are considered by CRA to have no comparable market value and therefore a receipt can only be issued for the actual cost of the dinner components where supported by appropriate invoices, receipts or their equivalents.
Gifts of time at vacation properties and the like are considered by CRA to be a gift of service as the title to the property has not changed. Gifts of services, such as tutoring, accounting and hairdressing are not eligible for a receipt. Gift cards and certificates are not eligible for a tax receipt.
Priceless gifts do not qualify for donation receipts. Examples might include appearing as a guest on a radio show, or riding on a float in a parade. By their very nature, such gifts do not have a fair market value.
For more information on what is considered a gift by the CRA Click HERE
For more information on determining Fair Market Value and Split receipting Click HERE