Frequently Asked Questions

What is a gift or a charitable donation?

A gift is a voluntary transfer of property without consideration to a donor for having made a gift.  It must be tangible property such as cash or a gift-in-kind of an actual object or thing.  These items must be new/not previously used to qualify.  Gifts-in-kind do not include gifts of services.

How do we establish the value of the donated items?

The fair market value of the item donated is what is used as a value for charitable donation tax receipt purposes.  Receipts should be attached to support the value indicated.  Where receipts are not available, the donor should supply some form of documentation to support the value shown.  Gift certificates, tickets to shows etc. should be photocopied and this copy attached to the donation form.  Independent appraisals are required for all items valued at $500 or more.

What about gift certificates?

We are not permitted to issue a receipt if a business donates a gift certificate.  This is considered to be a promise to provide something, not an actual transfer of property.  However, we may issue a receipt if a third party not connected with the business (a VC parent for example) donates a certificate that they have purchased.  A receipt for the purchase of the gift certificate should be attached to the donation form.

What about a business that donates an item to one of our fundraisers?

Normally, a donation of merchandise that is stock in trade for the donor or is otherwise an expense of the business is not usually eligible for a tax receipt.  Generally, if there is any promotional advantage to the donor then a receipt should not be issued.  If the item donated is inventory of the donor, a receipt may be issued for the fair market value of the property donated.  The donor is then responsible for ensuring that they include this fair market value as sales.

Questions or concerns, Please feel free to contact Bruce Colwill by email bruce.colwill@gmail.com