The following provides the lists of municipalities and information about their obligations as qualified donees under the Income Tax Act.
For more information, go to Enhancing the Regulatory Regime for Qualified Donees.
The Canada Revenue Agency (CRA) maintains a list of municipalities that shows their qualified donee status.
To find a municipality, select one of the following provinces or territories:
- British Columbia
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Prince Edward Island
Registered municipalities are qualified donees and can issue official donation receipts for income tax purposes. Before issuing an official donation receipt, the qualified donee must determine whether it has received a gift for the purposes of the Income Tax Act and the eligible amount of the gift. For more information, go to What is a gift? and see Pamphlet P113, Gifts and Income Tax.
The information on an official donation receipt must be legible and shown in a way that cannot be easily altered.
Receipts for cash gifts must have the following:
- a statement that it is an official receipt for income tax purposes
- the name and address of the qualified donee
- a unique serial number
- the location where the receipt was issued (city, town, municipality)
- the date the gift was received
- the date the receipt was issued
- the full name, including middle initial, and address of the donor
- the amount of the gift
- the amount and description of any advantage received by the donor
- the eligible amount of the gift
- the signature of an individual authorized by the qualified donee to acknowledge gifts
- the name and website address of the CRA
Receipts for non-cash gifts (gifts in kind) must also include:
- a brief description of the gift received by the qualified donee
- the name and address of the appraiser (if the gift was appraised)
The amount of a non-cash gift must be its fair market value at the time the gift was made.
Books and records
To maintain their qualified donee status, municipalities must keep adequate books and records containing:
- information to allow the CRA to verify revenues for which donors can claim tax credits or deductions
- information to allow the CRA to confirm that they meet the requirements for qualified donee status under the Income Tax Act
- a duplicate of each receipt containing prescribed information for each donation received
Books and records include, but are not limited to:
- financial statements
- source documents such as cancelled cheques and bank deposit slips
For more information about maintaining proper books and records, including the types of records that should be kept, retention periods, and electronic records, see Keeping Records.
If a municipality fails to keep books and records supporting the official donation receipts it issues, to provide these to the CRA on request, or is involved in the improper issuance of donation receipts, the CRA may suspend its receipting privileges or revoke it. If a municipality’s qualified donee status is suspended, it cannot issue official donation receipts or receive gifts from registered charities during that period. Revoked municipalities no longer have qualified donee status.
A qualified donee that objects to a notice can appeal the CRA’s decision by filing a notice of objection within 90 days after the day on which the notice was mailed. The notice of objection must be in writing and provide the reasons for the objection and all the relevant facts.
For more information about this process, go to Objections and appeals.
- Content of receipts Income Tax Regulations, C.R.C. 1978, c. 945, ss. 3501(1.1)
- Definitions ITA 149.1(1), Revocation 149.1(4.3), Notice of Revocation 168(1), Penalties 188.2, Books and Records 230(2)
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