North York Harvest Food Bank Receipting Policy
- Donations of $10 or more will automatically receive a tax receipt provided a full name and address are provide (Individuals must provide home address)
- Tax receipts for donations of less than $10 will only be issued upon request
- Tax receipts will be issued within 1 week of receiving a donation or can be issued at other times upon special request by donors
- Gifts made online for any amount will be automatically issued a tax receipt via email
- Gifts made to purchase or win raffle tickets, auction items or other items of value, do not qualify for a financial tax receipt as the CRA considers this an exchange of value.
Gift-In–Kind Receipting (Food)
Under current Canadian tax law, donors of food and consumer products receive no tax benefit for their donation. With regards to the charitable receipt, it is North York Harvest Food Bank policy not to provide tax receipts for food donations, as the onus for proof falls to us as a registered charity, to verify the dollar amount of the receipt. It is difficult for us to do this, as we need to employ an independent auditor to confirm the value being asked for, and this depends on the manufacturer, the brand of the product, where it is being retailed, etc.
Typically, companies will write off the cost of the product, or a percentage of the cost, and can do so within the regulations of Revenue Canada, and do not require a receipt. Therefore, if the value you are asking for here is within those write-off allowances, the company will be able to take the tax write-off without a charitable receipt.
We are happy to provide letterhead indicating the products donated as back-up, however, cannot attach a dollar value.
Marketable Securities Donations
- The value and the tax receiptable amount of marketable securities donations are determined by the value of trading on the date of receipt of donation.
- Tax receipts will be issued within 1 week of receiving a donation or can be issued at other times upon special request by donors.
Gift-in-kind Receipting (Not Food)
- Donations of property from individuals such as products, equipment, supplies, auction items, and other similar tangible items will receive a tax receipt, if requested at the time of donation and if we are provided with a third-party invoice, receipt, qualified appraisal, or similar documentation declaring the fair market value of the donated item. Tax receipts for gift-in-kind donations will be issued within 60 days of receipt of the item.
- Gifts of services for a silent auction, raffle or a fundraising event (such as a restaurant donating a gift certificate for their restaurant, dance classes donated by a dance teacher, hotels donating a night’s stay at their hotel) will NOT be issued tax receipts in accordance with CRA regulations as services do not qualify as gifts of property.
- NYH will review all donations to ensure reasonableness of value prior to issuing any tax receipts.
- Donations of property from corporations will receive a letter confirming receipt and a description of the item, but not a charitable tax receipt. It is NYH’s understanding that companies may use this letter as documentation to write off the cost or a percentage of the cost of the product according to CRA policies and do not require an official charitable tax receipt to do so.
- Donors of any services to NYH such as graphic design, printing, training, repair, cleaning, professional services (i.e., legal, accounting, consulting) and other similar services are eligible to receive a tax receipt if certain conditions are met.
- The vendor must issue an invoice or receipt to NYH for the fair market value of services provided.
- NYH will issue a cheque in full payment of the services received (i.e. pay the invoice).
- The vendor will make a monetary donation for all or a portion of the payment received for their services.
- Tax receipts will be issued within 1 week of receiving the donation or can be issued at other times upon special request by donors.
- NYH will review all invoices to ensure reasonableness of the charge for services prior to issuing any tax receipts.
- According to CRA standards the donation of volunteer services of time to the food bank, sorting, office work etc doesn’t qualify for a tax receipt. We are however happy to provide a formal letter upon request recording time spent volunteering.
Special Events/Ticket Sales/Sponsorships
Individuals/Corporations purchasing tickets for special events will receive a tax receipt for the amount of the ‘gain’ received (ticket cost less value of products/services received).
- Tax receipts will be issued after the event accounting is completed and net ‘gain’ tax receipt amounts can be calculated, typically within 60 days.
- Individuals/Corporations purchasing sponsorship opportunities (i.e., galas, food drives) will NOT receive a tax receipt in accordance with CRA regulations, since they are gaining the benefit of the advertisement of their corporate name at the event.