Within the spirit of giving, who higher acknowledges the worth of donations than registered charities and not-for-profit organizations (NPOs) themselves? Usually, NPOs and registered charities assist different registered charities attain their aims. As an illustration, a neighborhood pet shelter could donate to Vets With out Borders as a result of they acknowledge the significance of the work they do.
On this state of affairs, the Canada Income Company (CRA) reminds registered charities that there is no such thing as a have to difficulty an official donation receipt when receiving presents (money or presents in form) from different registered charities. Donation receipts are required for tax deduction or credit score functions solely; registered charities usually don’t pay earnings tax, and due to this fact don’t require donation receipts.
Nevertheless, if Vets With out Borders had been to recruit native pet shelters to help them in an promoting or advertising capability, this might not be the case of a present. Bear in mind to be conscious of the definition of a “reward” itself. Examples of transactions that don’t qualify as presents embody presents of providers, such because the earlier instance, non-cash presents with indeterminable market truthful worth, or the lease of premises. For additional info on presents, and a extra complete checklist of non-gift transactions, go to the CRA right here.
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