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Tax Receipts

SickKids Foundation is proud to be a leader in fundraising in Canada and is committed to following all rules and regulations regarding tax receipting set out by the Canada Revenue Agency (CRA). This is also important to protecting our charitable status.

It is very important that you understand the rules about tax receipts BEFORE you plan your event. The requirements for receipting are extensive and time consuming. You may decide, in the end, that if only a small tax receipt can be issued, it may be better not to offer them at all.

It is your responsibility to communicate decisions surrounding tax receipting to the participants of the event, so please be sure you and your development coordinator have discussed your situation in detail and that you are clear about what you can and cannot offer.

In general, if an individual or corporation is receiving any benefit for their donation or contribution, then a tax receipt is not usually issued. There are some exceptions to this, as described further on this page. Benefits could include: dinner, alcohol, chance to bid on auction items, entertainment, parking, etc.

It is very important to first ask yourself:
Is receiving a tax receipt important to the people participating in my event?

If the answer is NO, you will be saving yourself and the Foundation many hours of work by deciding not to offer them. The Foundation would be pleased to provide a thank you letter confirming any gift rather than issuing a tax receipt.

If the answer is YES, then be sure to review the following information about tax receipts and talk with your development coordinator to confirm your plan.

General Tax Receipt Information
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The Foundation can provide tax receipts only if:

  1. You have submitted an Event Proposal Form and been given approval by a development coordinator from the Foundation.
  2. You provide a complete and legible list of donors: Tax Receipt Collection Form
    • first and last name
    • address, including city and postal code
    • amount given
    • amount tax receipt to be issued for
    • list and value of any benefits received for donation (Fair Market Value)
  3. The tax receipt information and donations are received within 60 days of your event
    Note: Tax receipts dated for the year of your event can only be issued if all money and information is received by December 1st of that year.
  4. The donation is $20.00 or greater
  5. The tax receipt is being issued to the person who made the donation (unless the cheque issuer acts as a donation collector and issues a complete list of donor details and amount given)
  6. The rules and regulations additionally outlined for your specific type of event are followed

A business gift letter can always be provided to sponsors or other corporate contributors as proof of payment. Often, a charitable tax receipt is neither required nor appropriate for this group of contributors.

Individual Contributions

Individuals can give in the following ways:

Donations and Pledges:

If money or a "pledge" is given directly to the Foundation, in the form of a cheque or cash donation, then we can issue a charitable receipt to the person who gave the donation.

  • The donation must be $10.00 or greater to receive a tax receipt.
  • The full name and address (including postal code) and the amount given must be submitted.

Auction Purchases:

If someone purchases an item at an auction, they are receiving something (the purchased item, as well as the opportunity to participate in the auction) for their money and thus a tax receipt will not be issued.

Purchase of a Ticket or Entrance Fee to an Event (gala, show, sporting event or auction):

The person is receiving something in return for the donation, thus a tax receipt is not usually issued.

The exception to this is if the ticket or entrance fee price exceeds the Fair Market Value (FMV) of the event. The FMV would include:

  • any products or services
  • entertainment
  • food and drinks
  • any other benefit to the participant.

For example: If someone buys a gala ticket for $200 and the FMV of the show, gift, food and drinks is $125, then a tax receipt can be issued for $75.00 (the part of the ticket price that reflects the true donation beyond the value of the gala). (More information on Fair Market Value)

For further tax receipting information view the CRA summary policy.

There are many details regarding documentation and other regulations that must be addressed with your development coordinator before any tax receipts for ticket purchases will be issued. You must discuss your event with your development coordinator BEFORE you can make any commitment to your donors/suppliers for tax receipts.

Gift in Kind Donations:

If an individual donates an item, the fair market value must be established for the good. This can be done by:

  • Getting a purchase invoice or other proof of purchase
  • Having an independent third party appraise and value the item
  • Obtaining a current price list for the item at a recognized commercial enterprise operating independently of the donor

A tax receipt cannot be issued for personal services; including; legal, entertainment, transportation, or dining services.

Donations of Artwork

Also required for donations of artwork:

  • a list of credentials for the appraiser
  • a history of the artist
  • a description, picture and history of the piece of artwork including significant points of reference
  • the methodology used to value the artwork
  • reference to recent market purchases used to substantiate market value
  • proof of the date of acquisition of the artwork and a statement that the artwork was not purchased for purposes of donation
  • One page boiler plate appraisals, e-mailed appraisals, scribbled appraisals, or appraisals written in pencil are not valid.
  • Appraisals must be signed by the

Donations of Wine

Also required for donations of wine:

  • a list of credentials for the appraiser
  • a description of the wine donated and its physical state or other relevant conditions
  • the methodology used to value the wine
  • reference to recent market purchases used to substantiate market value
  • proof of the date of acquisition of the wine and a statement that the wine was not purchased for purposes of donation
  • One page boiler plate appraisals, e-mailed appraisals, scribbled appraisals, or appraisals written in pencil are not valid. Appraisals must be signed by the appraiser.

Corporate Contributions

Corporations can give in the following ways:

Donations and Pledges:

If the contributor is a corporation, 100 per cent of the contribution is deductible as a business promotional expense. If the corporation receives no benefits (i.e. advertising in a brochure, logo recognition, tickets, etc.), a tax receipt can be issued at the request of the corporation. The practice of the Foundation is to supply a gift confirmation letter for the value of the donation to act as a proof of payment unless a tax receipt is requested.

Sponsorships:

By virtue of being a sponsor, the corporation is receiving benefits in the form of recognition and advertising. They can be issued a gift confirmation letter that can be used to write off their contribution as a business expense.

Businesses Donating Inventory:

The Foundation can provide the donor with a gift in kind letter stating the value of the gift (requires backup to validate the price of the item/s). This letter can be used to write off the donation.

Gift in Kind Donations:

Businesses can deduct the original cost of the inventory as a business expense and not lose the tax benefit associated with the transfer of property. The Foundation will issue a gift in kind letter that can be used to verify the write off of the inventory.

Donation of Services

Tax receipts cannot be issued for services provided, including; personal, professional, or legal services.

Fair Market Value

Fair market value is "the highest price, expressed in a dollar amount that the property (good) would bring, in an open and unrestricted market, between a willing buyer and a willing seller who are knowledgeable, informed and prudent and who are acting independently of each other".

Fair market value does not include taxes, commission, etc.

If the fair market value cannot be established (e.g., what is the value of meeting a celebrity?), then a tax receipt cannot be issued.

Even if a sponsor has paid to cover costs, or has donated or discounted the price of the entertainment, food, etc, the same rule applies and only the price beyond the fair market value would apply for a tax receipt.

A complete list of all benefits to the participants and their value must be included in your documentation in order for tax receipts to be issued. Your "benefits" list must also include items and services donated or discounted for the event.

An item of benefit exceeding 10 per cent of the total benefit value must be supported by a quote from the supplier. We reserve the right to request documentation on all items.

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