When a donor makes a gift to a charity and receives something in return (known as an advantage by the Canada Revenue Agency), the charity can sometimes issue a charitable tax receipt for part of the value of the gift. This is called split receipting.
Subject to a number of limitations, the general approach can be described as:
Value of gift - value of advantage = Amount of receipt
- giving the donor something in return for their gift (an "advantage")
- was there a gift, and can it be valued?
- size of the advantage relative to the size of the gift
|
- an interactive tool to help you decide what kind of receipt to issue: full receipt, split receipt, or no receipt.
|
- did the donor intend to enrich the charity?
- advantage less than 80% of gift value?
- documenting intention to make a gift
|
- some common situations where split receipts would be used
|
