General Fundraising Guidelines

The purpose of these guidelines is to assist organizers to plan and execute a successful special event

In particular, it is necessary to adhere to guidelines provided by the Canada Revenue Agency ("CRA").  This agency is responsible for regulating charities in Canada. 

It is crucial that Canuck Place Children's Hospice remains in good standing with CRA in order to maintain its charitable status. 

Table of Contents:
1. Guidelines for Official Donations Receipt Issuance
2. Fundraising Events/Activities
     a) Business Donations of Goods from Inventory
     b) Sponsorships
     c) Donations of Services
     d) Gift Certificates
     e) Donations of Gift Certificates
     f) Acknowledgement & Receipting Requirements
     g) Gaming Events

Guidelines for Official Donations Receipt Issuance

The following are general guidelines only.  Please refer any specific questions for your event to your Development Officer / Director, Community Partnerships.

Canuck Place Children's Hospice is responsible for complying with Canada Revenue Agency's (CRA) (www.cra-arc.gc.ca) rules relating to the issuing of receipts.  Canuck Place is subject to penalties, including the loss of our registered charity status,  for issuing receipts that should not be issued.  Therefore Canuck Place reserves the right to respectfully decline a "doubtful" gift rather than to accept it. 

General Information

Canuck Place may issue receipts for monies received that adhere to all of the following criteria:

• a transfer of property from a donor to Canuck Place must be made;
• the transfer must be voluntary; and
• the donor neither expects nor receives any material benefit in return.

It is the last criterion that is the most important in relation to fundraising through special events.  It is very important that the donor receives a receipt only for donations made with no expectation of material benefits. 

Canuck Place Children's Hospice maintains the discretion to decline funds from an individual or group. 
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Fundraising Events/Activities

A fundraising event is defined as a dinner, golf tournament, concert, dance, show or similar event.  Tickets are sold for use on a specific date, and if not used, have no resale value

It may be possible for an official receipt for income tax purposes to be issued for the price of the ticket less the value of the dinner/entertainment/gifts to attendees. 

The following outlines some considerations for specific fundraising activities:

Fund Raising Dinners
The value of a comparable meal provided by a comparable facility will have to be ascertained. If the event is held at a restaurant, then the price the restaurant would charge a regular customer would be the comparable value. In this regard, it is acceptable to take into account group or banquet rates.   Generally, the right to participate in an auction to be held at the dinner will not be viewed as constituting an advantage.

Charity Auctions
Generally, it is the position of Canuck Place that there will not be an eligible amount with respect to items purchased at charity auctions on the basis that the bid determines the value of the various items put up for auction.  Therefore an official receipt for income tax purposes will not be issued to the purchaser of an auction item.

Lotteries
Participants in lotteries, while perhaps influenced in choosing which lottery they will participate in by the identity of the organizing charity, are primarily motivated by the chance to win the significant prizes that are offered. Accordingly, no part of the cost of a lottery ticket is a gift which may be receipted for income tax purposes.   Also see: Gaming

Concerts, Shows and Sporting Events
While a particular event may be a charity fund raiser and all or a portion of the proceeds designated in favor of a charity, Canuck Place Children's Hospice requires clear evidence that the ticket price is in excess of the usual and current ticket price to allow a finding that there is an amount eligible to issue an official receipt for income tax purposes. 

• Where the amount of the advantage (including the usual and current ticket price) is 80% or less of the actual ticket price, an official receipt for income tax purposes may be issued for the difference. 
•  If there is no reasonably comparable event, then no portion of the ticket price can be viewed as an eligible amount.

Golf Tournaments
We encourage you to review the information provided through the CRA website in determining the value of the various components that may be present at a fund raising golf tournament for the purpose of determining the amount of the advantage received by a participant.
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Business Donations of Goods from Inventory

An official receipt for income tax purposes may be issued to businesses who wish to donate goods from inventory.  However, an invoice must always be supplied with the donation.  To claim a charitable tax credit the business also has to include as income an amount equivalent to the gift's fair market value. Taxes are not included when determining the amount of the official receipt.

Canuck Place Children's Hospice must provide reasonable assurance that the business includes the fair market value of the donated merchandise in its sales revenues, as required by CRA.  Canuck Place may determine that a cheque exchange take place, whereby Canuck Place pays the donor for the invoice and an offsetting cheque in the same amount is issued by the donor.

Note: Because the value of any donated goods from inventory for which receipts are issued must be declared as income, the donor may realize no net benefit from an official donation receipt for income tax purposes.
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Sponsorships

Sponsorships are defined as donations which aid in the production of fundraising or other special events.  Such donations include donations of cash, goods, services and supplier's discounts on goods and services.

An official receipt for income tax purposes may not be issued if the donation is written into a legally binding contract (such as a sponsorship agreement).  In this case, the donation is not voluntary and does not qualify for an official donation receipt.

Additionally, an official receipt for income tax purposes may be issued only if the sponsor receives no advertising, promotion or any other material benefit in exchange for their donation.  If, for example, a sponsor wishes to have their company logo imprinted on the event program, an official donation receipt could not be issued for any contributions received.

However, an acknowledgment of thanks for contributions received, without promotion, is not regarded as advertising or promotion.  For example, a statement of thanks followed by a typed list of all sponsors (without logos) would not be regarded as promotional and official receipt for income tax purposes could be issued using the appropriate guidelines as outlined in the rest of this section.
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Donations of Services

Qualifying donations of services are services that have been paid for by the charity if the payment is voluntarily returned as a donation (NOTE:  the donor must declare the fair market value of the donated services as income on their income tax return.)

An official receipt for income tax purposes may be issued for donations of services only if a payment for services is voluntarily returned as a cash donation.

An invoice must always be supplied by the donor for the value of the services performed.  The invoice ensures that the donor declares the receipted amount as income on their income tax return, as required by CRA.

A cheque exchange must always take place.  Canuck Place issues a cheque to pay the invoice.  The donor can then issue a cheque to voluntarily return the payment as a donation and receive an official receipt for income tax purposes for the donated amount.

Note: Because the value of any contribution of services for which official donation receipts are issued must be declared as income, a donor may realize no net benefit from an official donation receipt.
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Gift Certificates

A gift certificate is defined as a certificate having a stated monetary value that entitles the recipient to purchase goods and /or services in the establishment of the issuer. 
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Donations of Gift Certificates

Canuck Place can issue an official donation receipt only when the donor:

• is not the issuer of the gift certificate; and
• has obtained the gift certificate for valuable consideration either from the issuer or other third party.

Canuck Place cannot issue official receipts for income tax purposes for gift certificates they receive directly from the issuer.
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Administrative Requirements for Acknowledgement and Receipting

Canuck Place Children's Hospice must receive all funds from event organizer/fundraising event before official receipts for income tax purposes can be issued.  Please submit your proceeds promptly to avoid delay.

In cases where official donation receipts may be issued, Canuck Place requires the following documentation:

• Name, address and telephone number of each donor.
• Detailed breakdown of the event's expenses and revenues.  This must include a calculation of the fair market value of the event stating how much it would have cost if it was run as a profit-making venture.
• Calculation of the official donation receipt amount for each donor if an official donation receipt is to be issued.

Depending upon the quantity of donors, acknowledgments and/or official donations receipts (if applicable) are issued approximately four to six weeks after the funds are received by Canuck Place.
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Gaming Events

To raise funds from Canuck Place Children's Hospice with a gaming event we require that the event be licensed.  Licenses are obtained by, are in the name of, and are the responsibility of event organizers.

For information on the Ministry of Public Safety and Solicitor General's Gaming Policy and Enforcement Branch's "Guidelines for Applying for a Class 'A' or Class 'B' Gaming Event License", please view the BC Gaming Commission website at: www.pssg.gov.bc.ca/gaming

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This document is intended for general use only and is property of Canuck Place Children's Hospice. 

For specific questions regarding your event, please contact the Development office at:  604.646.1340 or email: Robyn Zylstra