Summary Policy

Date
October 25, 2002 (Revised June 14, 2007)

Reference Number
CSP - R02

Key Words
Receipt - Official donation receipt - Sanctions - Revocation

Under the Income Tax Act, a qualified donee (e.g., a registered charity) can issue official donation receipts for income tax purposes for donations that legally qualify as gifts.

A registered charity that issues an official donation receipt that includes incorrect information is liable to a penalty equal to 5% of the eligible amount stated on the receipt. This penalty increases to 10% for a repeat infraction within 5 years.

A registered charity that issues an official donation receipt that includes false information is liable to a penalty equal to 125% of the eligible amount stated on the receipt, where the total does not exceed $25,000. Where the total exceeds $25,000, the charity is liable to a penalty equal to 125% and the suspension of tax-receipting privileges.

A registered charity that contravenes or continues to contravene the Act could also have its registration revoked.

• Penalties, CSP-F17.
• Revocation, CSP-R12.
• Sanctions, CSP-S17.
• Suspensions, CSP-S18.
• Computer-Generated Official Donation Receipts, CPS-014.
• Donations of Gift Certificates, CPS-018.
• Address on Official Donation Receipt, CPC-015.
• Expenses Incurred by Volunteers, CPC-012.
• Fair Market Value of Donated Item and Taxes, CPC-006.
• Gifts of Services, CPC-017.
• Gifts Out of Inventory, CPC-018.
• Issuance of Official Donation Receipt and Effective Date of Registration, CPC-009.
• Name on Official Donation Receipt, CPC-010.
• Payment for Participation in a Youth Band or Choir, CPC-019.
• Payment to a Registered Charity, CPC-008.
• Receipt, CIL-1993-005, CIL-1994-004, CIL-1994-006, CIL-1995-012, CIL-1995-014, CIL-1995-017, CIL-1997-005, CIL-1997-011, CIL-1998-005, CIL-1998-012, CIL-1998-014, CIL-1998-021, CIL-1998-024, CIL-1999-011, CIL-1999-015, CIL-2000-002, CIL-2000-004, CIL-2000-014, CIL-2001-010, CIL-2001-014, CIL-2001-018, CIL-2001-023, CIL-2002-008, CIL-2006-001.
• Income Tax Technical News, Issue 26.
• Registered Charities Newsletter, Issue No. 23.
• Registered Charities Newsletter, Issue No. 25.
• Registered Charities Newsletter, Issue No. 27.
• Sample Receipts
• College rabbinique de Montreal Oir Hachaim D'Tash v. Canada (Minister of the Customs and Revenue Agency) (2004 FCA 101), 2004-03-09.
• Income Tax Act, R.S.C. 1985 (5th supp.) c. 1, ss. 188.1(7) to (10) and 188.2(1).
• Income Tax Regulations, C.R.C. 1978, c. 945, ss. 3500, 3501(1) and (1.1).