Making a donation - Questions and answers

Answers to common questions about making a donation.

1. How do I verify if a charity is registered?
2. Is a charity required to issue an official donation receipt?
3. To whom must an official donation receipt be addressed?
4. Is it safe to donate online?
5. How do I donate property?
6. How do I donate securities?
7. How can I find a list of charities that have had their charitable status revoked?
8. How can I make a complaint against a charity?
9. Can I donate gifts of service?

1. How do I verify if a charity is registered?
Ask the charity for its registration number, and confirm its status by consulting the CRA Charities Listings, or by calling the Canada Revenue Agency at 1-800-267-2384.

2. Is a charity required to issue an official donation receipt?
No. However, the Canada Revenue Agency advises charities to notify potential donors of any circumstances in which they will not issue an official donation receipt. Donors cannot claim a charitable tax credit or deduction unless they have an official donation receipt.

3. To whom must an official donation receipt be addressed?
Generally, the official donation receipt can only be issued to the true donor of the gift to a charity. If a donation is made by a cheque in both spousal names, an official donation receipt can be issued in either name. If a corporation sends a donation to a charity, the official donation receipt can be made to the corporation owner only if he has sent a personal cheque. If the corporation is donating money that has been collected from its employees, and there is a written declaration to prove this, the charity can issue the official donation receipt in each donor's name.

4. Is it safe to donate online?
Any charity that solicits donations online should be responsible for protecting your information. Read the charity's privacy policy before making a donation online. Only give donations through secure Web pages. If you are unsure about donating online, contact the charity and ask them for other ways to donate.

5. How do I donate property?
Some important information to keep in mind when you donate property:

• If you plan to give away property, any capital gain you have made on the property since you acquired it may be subject to tax. For more information, see Capital gains and losses.
• Your own situation will affect the tax status of the gift. If you are an artist, dealer, or collector, different tax rules apply when you donate property from your inventory.
• You have to decide where you are going to donate your property. The Canada Revenue Agency (CRA) cannot advise which museum, art gallery, archive, municipality, or institution you should approach. However, a donor resource called the CRA Charities Listings can help you research registered charities. Once you have chosen a qualified donee, and have determined that it is willing to accept your gift, you or the qualified donee may need to have the property appraised to determine its fair market value.
• The tax implications may differ in some situations, depending on the way in which you make the gift and to whom.

For complete information on donating property, see Pamphlet P113, Gifts and Income Tax.

6. How do I donate securities?
The Government of Canada has eliminated the capital gains tax on the eligible amount of publicly traded securities donated to registered charities.

Publicly traded securities include:

• a share, debt obligation, or right (e.g., stock option) listed on a designated stock exchange;
• a share of the capital stock of a mutual fund corporation;
• a unit of a mutual fund trust;
• an interest in a related segregated fund trust; or
• a prescribed debt obligation (e.g., government savings bond).

If you are interested in donating securities to a charity, contact the registered charity first to determine the best way to proceed.

For more information, please see Capital gains realized on gifts of certain capital property or refer to Form T1170, Capital Gains on Gifts of Certain Capital Property.

7. How can I find a list of charities that have had their charitable status revoked?
Find revoked charities by searching the CRA Charities Listings advanced search and selecting one of the following options from the "charity status" dropdown list:

• Canadian Revoked Charities;
• Revoked Charities For Cause;
• Revoked Charities Voluntary; or
• Revoked Charities Failure to File.

Remember to complete other fields to help narrow your search.

Listings of charities revoked after March 2010 will also offer a summary of revocation, which can be found under their status.

You can also visit the What's new page to find information on recent revocations.

8. How can I make a complaint against a charity?
If you suspect that a charity, registered or otherwise, is involved in fraudulent activities, contact the Canadian Anti-Fraud Centre, by going to www.antifraudcentre.ca or calling 1-888-495-8501.

9. Can I donate gifts of service?
No. For a donation to be eligible to reduce your taxes, you must transfer ownership of property (cash or gifts in kind such as goods, land, or securities) to a registered charity or qualified donee. Gifts of services are not considered property.