FAQs about

Charitable Tax Receipts

Expecting a tax receipt but haven’t received it yet? Please note that if you are a monthly or regular donor, your receipts may be grouped at the end of the year and not sent to you individually. For online donations, receipts are normally automatically issued by email at the time of donation. Year-end tax receipts are normally sent out by early February of the following year. If you are expecting a receipt and have not received it yet please contact Dana at 519-966-5751, ext 115 or at dana@windsorhumane.org. If you would like to receive copies of your receipts by email please contact Elena at 519-966-5751 ext 124 or at elena@windsorhumane.org.

The WECHS is extremely grateful for all offers of donations from businesses and individuals. We appreciate that you see the value in the life-saving work we do, and the benefits to the animals in our care. In order to remain a Registered Charity and continue this work we must adhere to the strict guidelines of the CRA Income Tax Act when issuing any charitable tax receipts. For more information about receipts from the CRA visit: www.canada.ca/en/revenue-agency/services/charities-giving/charities/operating-a-registered-charity/issuing-receipts.html.

Donations from Individuals

Tax receipts will be issued automatically to individual donors for monetary donations over $20 as long as a full name and address are provided. Revenue Canada requires that the receipt be issued to the person who actually made the donation, so for donations by cheque, the tax receipt will be issued to the person named on the cheque. Tax receipts may be issued for donations under $20 that meet the above criteria, but only upon request. Some donations may be made through a third party site, like Facebook. WECHS receives these donations, but typically does not receive any donor contact information or details. For some of these platforms, a tax receipt will be issued by the third party to the donor directly and the funds (less a transaction fee) will be provided to WECHS. Please note that most donations collected through sites like Go Fund Me are not receiptable, and rely on the person organizing the fundraiser to use the funds as promised. Tax receipts for donations made in memory of another person are issued to the donor. The next of kin will receive a notification with the name of the donor (but not the amount of donation). Please note that some funeral homes will not provide contact information for next of kin; if there is someone you wish to ensure is notified of your gift please advise us. While a donor can direct their donation to a specific program (for example, towards spay/ neuter or to feeding of shelter animals), a donor cannot choose a specific beneficiary for their gift. As such, when a donation is given to offset the fees of a specific animal’s adoption or to pay for surgery for a specific person’s animal, the amount is no longer considered a gift at law and a charitable tax receipt cannot be issued.
A charitable donation tax receipt will be issued by WECHS for the closing value of a publicly traded security on the day WECHS receives the security, net of any brokerage charges incurred. Please contact Arms at development@windsorhumane.org to arrange a gift of securities. Donations of securities to WECHS can also be done through Canada Helps (https://www.canadahelps.org/en/securities/donate); in that event the tax receipt will be issued by Canada Helps but the funds (less a transaction fee) will be provided to WECHS by Canada Helps. Some donations may be made through a third party site, like Facebook. WECHS receives these donations, but typically does not receive any donor contact information or details. For some of these platforms, a tax receipt will be issued by the third party to the donor directly and the funds (less a transaction fee) will be provided to WECHS. Please note that most donations collected through sites like Go Fund Me are not receiptable, and rely on the person organizing the fundraiser to use the funds as promised. Tax receipts for donations made in memory of another person are issued to the donor. The next of kin will receive a notification with the name of the donor (but not the amount of donation). Please note that some funeral homes will not provide contact information for next of kin; if there is someone you wish to ensure is notified of your gift please advise us. While a donor can direct their donation to a specific program (for example, towards spay/ neuter or to feeding of shelter animals), a donor cannot choose a specific beneficiary for their gift. As such, when a donation is given to offset the fees of a specific animal’s adoption or to pay for surgery for a specific person’s animal, the amount is no longer considered a gift at law and a charitable tax receipt cannot be issued.
Tax receipts can only be issued for items that are needed and would otherwise need to be purchased by WECHS. A charitable donation tax receipt may be issued for items donated by individuals, which are accompanied by a receipt of purchase from the original supplier or an appraisal. If the item was purchased within three years, the receipt will be the lesser of the cost or fair market value. A charitable donation tax receipt can’t be issued for items in which the fair market value of the item is not clearly verifiable. WECHS is responsible for reporting the fair market value of the gift in kind on the official charitable donation tax receipt. Canadian Revenue Agency indicates that the fair market value is the “highest price in dollars that the property would bring in an open and unrestricted market” between a willing buyer and seller who are both informed, prudent and knowledgeable and acting at arm’s length. In order to determine the fair market value of a gift in kind, an independent appraisal is required for items over $1,000.
A charitable donation tax receipt can be issued for art over $1,000 if there is a letter of appraisal from an independent retailer verifying the value. For art under $1,000 a receipt of purchase must be provided to clearly indicate the fair market value. For art purchased within the past three years, the receipt will be the lesser of the fair market value or the purchase price. If the Canada Revenue Agency determines that the appraisal value is inflated, the donation claim will be disallowed or adjusted, and penalties can apply.
A charitable donation tax receipt cannot be issued for services, since Canada Revenue Agency disallows it. An individual can bill a charity for the service and receive payment, at which time the individual can donate back the amount received for the service. The individual must report the service as taxable income. Gift certificates for services cannot be receipted.

Donations From a Third Party Fundraiser

As per Canada Revenue Agency, a donor may only claim a tax credit in respect of a charitable gift made directly by him/herself. The coordinator of a fundraiser is essentially acting as an “agent” for the persons (donors) whom the funds are collected. The property transferred to the charity is the property of the persons from whom the gifts were collected on the understanding it would be given to a charity. Those persons may be entitled to a charitable receipt within the guidelines of charitable tax receipting rules applicable to events. It is Canada Revenue Agency’s view that where a coordinator of an event collects funds from the general public and pays the amount to a registered charity, the coordinator would not be entitled to a charitable tax receipt.

 

However, if an individual is organizing an event or activity that they would otherwise be entitled to retain the proceeds from (for example, putting on a concert where admission is charged), and decides to donate some or all of the proceeds of the event to WECHS, a tax Receipt may be issued for the value of that donation.

Donations From Businesses

Corporate donations are deducted from taxable income, whereas individuals claim a non-refundable tax credit on charitable donations. Because there is no benefit to a business to obtain a charitable donation tax receipt, one will not routinely be issued. However, if a business requests a charitable donation receipt, WECHS will provide one in the name of the business for monetary donations over $20.
If a business sponsors a fundraising event, under the Canada Revenue Agency rules, WECHS cannot issue an official charitable donation tax receipt, because the sponsor is receiving a promotional or other benefit (for example, tickets to the event). WECHS will provide a letter of acknowledgment as a receipt for the sponsorship.
A business that donates inventory/items can deduct the cost of the inventory as a business expense. If a charitable donation receipt is requested by the business, then they are required to include the fair market value of the donated property as income, which is then offset by the deduction of the charitable donation. As a result, no benefit is obtained from the charitable donation tax receipt. WECHS will provide a letter acknowledging the items donated.
Canada Revenue Agency disallows donations of services (including gift certificates) for charitable donation tax receipts. A business providing services to WECHS can invoice WECHS for the service and receive payment (if approved by WECHS as an expense), at which time the business can donate back the amount received for the service. The business (donor) must account for the services as business income.

Charitable Tax Receipts for Tickets to Fundraising Events

In accordance with Canada Revenue Agency, WECHS must calculate the portion of the purchase price that is eligible for an official charitable donation tax receipt by determining the fair market value of admission to the fundraising event. A charity can only issue a tax receipt for the difference between the price of the admission ticket for the event and the fair market value of the event (including gifts, entertainment, and meals received by attendees). When WECHS has determined that a tax receipt will be issued for a portion of an event’s admission, that information will be included in the event promotion. As with all charitable tax receipts, the receipt will be issued to the individual who actually made the payment.