Questions and answers

Answers to common questions about donating to a charity in Canada.

1. What is a registered charity?
2. Are registered charities subject to other federal and provincial/territorial requirements?
3. How do I start a charity?
4. How do I verify if a charity is registered?
5. What is the main difference between a non-profit organization and a registered charity?
6. Which organizations can issue official donation receipts for income tax purposes?
7. Can a registered charity lend its registration number to another registered or non‑registered charity?
8. Is a charity required to issue an official donation receipt?
9. To whom must an official donation receipt be addressed?
10. How can I replace a lost official donation receipt?
11. Which donations qualify for an official donation receipt?
12. If the charitable status of a charity to which I have recently made a donation has been revoked, can I still claim my tax credit?
13. What if I get something in return for my donation?
14. Can a charity return a donation?
15. How do I claim a donation?
16. Do I have to claim donations the same year that I make them?
17. What is the current tax credit rate for donations?
18. How do I maximize the benefit of my donation?
19. How do I find a registered charity to support?
20. How can I help the victims of a disaster?
21. What if I can't find a charity in the CRA Charities Listings?
22. How can I find out more about a registered charity that interests me?
23. How can I learn more about how a charity spends its money?
24. I've been invited to participate in a donation program that will make me a profit. Is it safe to participate?
25. How do I report charity fraud?
26. Is it safe to donate online?
27. How can I find a list of universities outside of Canada to whom I can donate and from whom I can receive an official donation receipt?
28. How can a charity be added to the list of charities to which Her Majesty in right of Canada has made a donation?

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1. What is a registered charity?

A registered charity is a charitable organization, public foundation, or private foundation that was established in Canada and is resident in Canada. It is operated exclusively for charitable purposes (i.e., the relief of poverty, the advancement of education, the advancement of religion, or other purposes that benefit the community in a way the courts have said are charitable) and must devote its resources to charitable activities. A registered charity has received a registration number from the Canada Revenue Agency and is exempt from paying tax on its revenue. It can issue official donation receipts for income tax purposes for gifts that it receives.

2. Are registered charities subject to other federal and provincial/territorial requirements?

Yes. Registered charities can be subject to other federal or provincial/territorial legislation that is associated with their operations, such as provincial or municipal standards for a nursing home, hospital, school board, or housing project. If a charity is incorporated, it must meet certain requirements under the incorporating statute, which may include other filing requirements. Additionally, there may be provincial, territorial, or municipal laws governing fundraising and other operations of the charity.

3. How do I start a charity?

See Applying for registration.

4. 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.

5. What is the main difference between a non-profit organization and a registered charity?

Registered charities must fit into one of four categories of charitable purposes: the relief of poverty, the advancement of education, the advancement of religion, or other purposes that benefit the community in a way the courts have said are charitable. Non-profit organizations may not fit into one of the four categories of charitable purposes but may have purposes such as social welfare, civic improvement, pleasure, or recreation. Non-profit organizations cannot issue official donation receipts for gifts that they receive.

6. Which organizations can issue official donation receipts for income tax purposes?

The Income Tax Act permits qualified donees to issue official donation receipts for donations they receive from individuals or corporations. Qualified donees include:

• registered Canadian charities;
• registered Canadian amateur athletic associations;
• tax-exempt housing corporations resident in Canada that only provide low-cost housing for seniors;
• municipalities in Canada under proposed legislation for gifts made after May 8, 2000, municipal or public bodies performing a function of government in Canada;
• the United Nations and its agencies;
• prescribed universities outside Canada;
• charitable organizations outside Canada to which the Government of Canada has made a donation in the tax year, or the previous tax year; and
• the Government of Canada, a province, or a territory.

7. Can a registered charity lend its registration number to another registered or non‑registered charity?

No. Under no circumstances should a registered charity lend its registration number to another organization for receipting purposes. A charity that lends its registration number risks losing its charitable registration. A donor who accepts a falsified official donation receipt will risk having the tax credit disallowed and may be subject to fines.

8. Is a charity required to issue an official donation receipt?

Registered charities are not required to issue an official donation receipt. For more information, see the Official donation receipts section.

9. 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.

10. How can I replace a lost official donation receipt?

See the Official donation receipts section.

11. Which donations qualify for an official donation receipt?

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 and the transfer has to be voluntary. These donations could consist of money, securities, ecologically sensitive land, certified cultural property, capital property, personal-use property (such as prints, etchings, drawings, paintings, sculptures, jewellery, rare folios, rare manuscripts, rare books, stamps, and coins), and inventory (such as art, antiques, rare books). Gifts of services are not considered property and do not qualify for an official donation.

12. If the charitable status of a charity to which I have recently made a donation has been revoked, can I still claim my tax credit?

If the organization was registered during the time of your donation, and if your receipts genuinely reflect the amount you gave, you can still claim your tax credit. Please note that when a charity is revoked, the organization may donate its assets to another eligible donee; otherwise, the assets are collected as tax.

13. What if I get something in return for my donation?

When a registered charity provides you with something of value in return for making a donation, the eligible amount of your donation for income tax purposes is generally reduced. This amount will be reflected on your official donation receipt. For example: You donate $1,000 to the Anytown Ballet Company, which is a registered charity. In gratitude, the company provides you with three ballet tickets worth $50 each, for a total value of $150. These tickets are considered an advantage of $150. The eligible amount of your donation for calculating your tax credit is therefore $850 ($1,000 - $150).

14. Can a charity return a donation?

In most cases, a registered charity cannot return a donor's gift. At law, a gift transfers ownership of the money or other gifted property from the donor to the charity. Once the transfer is made, the charity is obliged to use the gift in carrying out its charitable purposes. On occasion, though, a charity may be obliged by law to return gifts to donors. This can happen, for instance, when a charity asks the public to contribute to a special project and later events make it impossible to carry out the project.

15. How do I claim a donation?

See Line 349 - Donations and gifts.

16. Do I have to claim donations the same year that I make them?

No. You can carry forward any donations you do not claim in the current year and claim them on your return for any of the next five years, but you can only claim donations once. You have to claim tax credits for gifts you carried forward from a previous year before you claim tax credits for gifts in the current year. If you are claiming a carryforward, attach a note to your return indicating the year of the return in which you submitted the official donation receipt, the portion of the eligible amount you are claiming this year, and the amount you are carrying forward.

17. What is the current tax credit rate for donations?

The first $200 you donate is eligible for a federal tax credit of 15% of the donation amount. After the first $200, the federal tax credit increases to 29% of the amount over $200. Generally, you can claim all or part of this amount up to a limit of 75% of your net income. For gifts of certified cultural property or ecologically sensitive land, you may be able to claim up to 100% of your net income. In addition, you will generally be eligible for a provincial tax credit, which varies between provinces.

18. How do I maximize the benefit of my donation?

• Donate a listed security and avoid the capital gains tax. You are no longer required to pay taxes on securities if they are being donated to qualified donees.
• Claim over $200 and increase your federal tax credit from 15% to 29% on the amount over $200. There are two ways to increase the amount of your claim:
  • combine your receipts with those of your spouse or common-law partner; and
  • accumulate your receipts for up to five years.

19. How do I find a registered charity to support?

Visit the CRA Charities Listings, which lists each registered charity in Canada. Search for charities by name, keyword (e.g., disaster), category code (e.g., 21: Support of Schools and Education), or location.

20. How can I help the victims of a disaster?

The quickest way to help the victims of a disaster is to donate cash to an existing organization that offers humanitarian relief. You can find a registered charity whose main or stated purpose is "Disaster Funds" by searching the CRA Charities Listings using category code "02." You should confirm with the registered charity that it is collecting funds for the victims of the disaster.

21. What if I can't find a charity in the CRA Charities Listings?

See What if I can't find the charity I am looking for?

22. How can I find out more about a registered charity that interests me?

Use the CRA Charities Listings on the CRA Web site to:

• determine whether a charity is registered under the Income Tax Act and, therefore, eligible to issue official donation receipts for income tax purposes;
• learn more about a charity's financial information (assets, liabilities, income, and expenditures) before making a donation;
• learn more about the activities of a registered charity; and
• determine how to contact a charity.

You can also contact the charity directly and ask for additional information, which could include a newsletter, Web site, or promotional material.

23. How can I learn more about how a charity spends its money?

Search for a registered charity in the CRA Charities Listings and then access the charity's Registered Charity Information Return, which includes financial information and activities. You can also contact the charity directly.

24. I've been invited to participate in a donation program that will make me a profit. Is it safe to participate?

There are serious risks associated with this type of program – See Donation schemes to learn more.

25. How do I report charity fraud?

Report fraud to PhoneBusters, the Canadian Anti-Fraud Call Centre by calling 1-888-495-8501. You can also call the CRA's toll free numbers in Canada: 1-800-267-2384 (English) or 1-888-892-5667 (bilingual). In the Ottawa area, call the CRA at 613-954-0410 (English) or 613-954-6215 (bilingual).

26. 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.

27. How can I find a list of universities outside of Canada to whom I can donate and from whom I can receive an official donation receipt?

See Information Sheet RC191, Donations to Prescribed Universities Outside Canada.

28. How can a charity be added to the list of charities to which Her Majesty in right of Canada has made a donation?

A charity can ask for a gift from Her Majesty. If they are granted the gift, then they will become eligible to be added to the list. For more information, see Income Tax Information Circular Information Circular IC84-3R5, Gifts To Certain Charitable Organizations Outside Canada.