CRA Donation Receipt Requirements for Charities: What they Can (and Can’t) Receipt in Canada

CRA Donation Receipt Requirements for Charities

Donation receipt compliance is a legal requirement that every Canadian charity must prioritize. Donation receipts are more than a thank-you—they’re legal documents regulated by the Canada Revenue Agency (CRA). Missteps in what’s receipted or how it’s receipted can lead to audits, penalties, or even the loss of charitable status.

This article outlines the most misunderstood rules around issuing receipts, clarifies common misconceptions, and provides practical tips for compliant receipting.

For help reviewing your organization’s receipting policy, explore our charity and non-profit legal services.

Who can issue official donation receipts?

Canadian registered charities and other qualified donees can issue official donation receipts for eligible gifts. Qualified donees include certain organizations recognized under the Income Tax Act, such as registered Canadian amateur athletic associations and Canadian municipalities.

Check the organization’s status using the CRA lists of charities and other qualified donees. Incorporation, a worthy purpose or a business number alone does not establish authority to issue tax receipts.

Can a non-profit issue tax receipts?

A non-profit organization that is not a registered charity or another qualified donee cannot issue official donation receipts. It can acknowledge a contribution, but should make clear that the acknowledgment is not a tax receipt.

For more on these different statuses, read our guide to the difference between charities and non-profit organizations.

What Can Be Receipted (and What Can’t)

Canadian registered charities can only issue official donation receipts for eligible gifts—voluntary transfers of property that meet the applicable gift and receipting rules. A donor benefit may require split receipting, as explained below. Eligible property includes:

• Cash donations

• Publicly traded securities

• Certain gifts-in-kind, if their fair market value can be reasonably determined

Charities cannot issue a receipt for:

• Services rendered (time or labor)—even if donated

• A pledge before the promised property is transferred

• A gift or donor advantage whose fair market value cannot be determined

• A payment that does not meet the gift requirements after donor benefits are considered

The CRA defines strict eligibility rules, and failing to follow them puts the charity—and its donors—at risk.

How to Receipt Properly: Complete Information Checklist

Even when a donation is eligible, how it’s receipted matters. An official receipt for a registered charity’s cash gifts must meet the CRA’s mandatory information requirements:

• A statement identifying an official receipt for income tax purposes.

• The charity’s name and address as recorded with CRA.

• The charity’s registration number and a unique receipt serial number.

• The place where the receipt was issued.

• The day or year the donation was received, plus the date the receipt was issued.

• The donor’s full name, including middle initial, and address.

• The cash amount received.

• A description and value of any donor advantage.

• The eligible amount that can be claimed.

• The signature of an individual authorized to acknowledge donations.

• The Canada Revenue Agency’s name and website address: canada.ca/charities-giving.

Extra details for non-cash gifts

Include the actual date received, a short description of the donated property and, if appraised, the appraiser’s name and address. The gift amount reflects its fair market value, subject to applicable deemed-value rules. Keep donation receipts readable and difficult to alter.

Eligible amounts, donor benefits and split receipting

A donor benefit, or advantage, can reduce the amount eligible for a tax receipt. The basic calculation is the gift’s value minus the value of the advantage.

Under CRA split-receipting guidance, certain small benefits can be ignored when their combined value does not exceed the lower of $75 or 10% of the gift. This exception does not cover cash or near-cash benefits.

If the advantage exceeds 80% of the gift’s value, CRA generally considers that there is no intention to make a gift. Exceptional cases require proof of that intention; do not assume the difference is automatically receiptable.

Example: a cash gift without a benefit

A supporter transfers $250 to a registered charity and receives nothing in return. Assuming the transfer qualifies as a gift, the eligible amount is $250. The charity records the donor’s details, the payment and its receipt number, then issues a charitable donation receipt containing the required information.

This simple case is a useful test for your template. Staff should be able to distinguish the donation amount, any advantage and the final receiptable amount without guessing which field to complete.

Example: a small thank-you gift

A donor gives $500 and receives a thank-you item worth $20. The nominal-benefit threshold is $50, being lower than $75. Assuming the item qualifies for the exception and there are no other advantages, the eligible amount is $500.

Example: a fundraising dinner

A supporter pays $200 for a dinner with a meal valued at $60. Assuming no other advantages and an otherwise qualifying gift, the tax receipt is for $140.

The meal is the main benefit of the event, so its value must be deducted even if a nominal-benefit calculation would otherwise apply. The CRA’s fundraising-event guidance explains why the benefit’s value matters, including when sponsors help cover costs.

Gifts-in-kind and fair market value

For non-cash gifts, charities must determine and document the fair market value (FMV) at the time of donation, using a reasonable valuation method. If the FMV can’t be determined, a receipt should not be issued.

Keep evidence supporting the valuation, such as comparable sales or an appraisal. A donor’s preferred figure is not enough. The registered charity remains responsible for the value shown on official donation receipts.

CRA strongly recommends an independent professional appraisal when expected value exceeds $1,000. This is a recommendation, not a blanket rule that every such gift legally requires an appraisal.

If the charity cannot determine the value of the property or the advantage, it cannot issue a tax receipt.

Example: recently purchased artwork

A donor bought a painting for $400 last year and now donates it with a supported market value of $900. If the deemed fair market value rule applies and no exception is available, the receipting value is limited to $400 before any advantage is deducted.

The deemed fair market value rule can limit certain gifts to the lower of market value and cost or adjusted cost base. Acquisition timing, tax-shelter arrangements and statutory exceptions matter. Ask when and how the donor acquired significant non-cash gifts.

Electronic donation receipts and email delivery

Electronic receipts are permitted, but the mandatory information still applies. A donation platform’s payment confirmation is not necessarily an official donation receipt.

The CRA’s electronic receipting guidance calls for protection against unauthorized access and alteration, restricted access to donor records, recoverable records and the ability to print receipts.

For email delivery, CRA recommends non-editable documents, appropriate security software, encryption and an electronic signature controlled by an authorized person. Keep copies of emailed donation receipts.

Test the process from the donor’s perspective. Check that the attachment opens, its information is complete and staff can retrieve the same receipt later. A PDF format alone does not establish that every security requirement has been addressed.

Lost, replacement and corrected receipts

Use a documented replacement process for lost receipts or errors discovered after issue. The CRA’s replacement guidance requires the new receipt to contain the mandatory information, reference the original serial number and state that it replaces the original.

Retain the charity’s original copy and mark it cancelled. If a mistake is caught before issue, retain both copies of the incorrect receipt, mark them cancelled and prepare a new one.

For example, a replacement receipt could say “Replaces receipt 0042.” Link the replacement and cancelled original in your records so staff can explain why two documents relate to one donation.

Common Compliance Pitfalls

Most issues arise not from bad intent, but from confusion about:

• Split receipting: When a donor receives something in return (e.g. gala ticket), the amount must be adjusted where required, and both the donation and the benefit clearly stated.

• Incorrect valuation of gifts-in-kind: Determine FMV through reliable sources (e.g. appraisers, marketplace data) and retain supporting evidence.

• Receipting services: Time, skills, or labor—even if provided for free—are never eligible for receipting. Services are not property that can be donated.

If in doubt, do not issue a receipt—or consult legal or accounting support familiar with CRA charity rules.

Best Practices for Donation Receipt Compliance

To stay compliant:

• Use standardized templates approved by your board or legal advisor

• Train staff and board members annually on receipting rules

• Conduct internal reviews of all receipts issued (spot checks are better than none)

• Document your valuation sources for all non-cash gifts

• Maintain a receipting policy and make sure it’s understood across the organization

A single inaccurate receipt can lead to significant consequences. Building strong internal habits is your best defense.

Donation Receipt FAQs

Can we receipt donated services or volunteer time?

No. Services, labor, or time do not count as eligible gifts under CRA rules—even if they have clear value.

What if we give donors a thank-you gift?

If the benefit does not qualify for the nominal-benefit exception, it must be deducted from the receipt amount using the split receipting method. The threshold is the lower of $75 or 10% of the donation, with exceptions for cash, near-cash benefits and the main benefit of a fundraising event.

Do we need to receipt every donation?

No. Receipts are not mandatory for every donation. However, if you do issue them, they must meet all CRA standards.

A registered charity may set a minimum donation threshold. Explain the policy to donors in advance. Without an official donation receipt, a donor cannot claim the associated charitable tax credit or deduction. See CRA guidance on when receipts are issued.