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New Rules for Charities
Adam Aptowitzer, October 20, 2005
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| As the end of the year approaches, registered charities will soon be turning their minds to issuing receipts for donations received during the year. Most charities will know that the Canada Revenue Agency changed the requirements for receipts before the end of the last year but delayed strict enforcement of the changes until this year. If a charity does not include all the relevant information, it is subject to a penalty of 5% of the amount on the improper receipts. |
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| All receipts issued by Canadian registered charities must contain at least the following information: |
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| 1. A statement that the receipt is an official tax receipt; |
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| 2. The name and Canadian address of the organization; |
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| 3. The name and address of the donor; |
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| 4. The organization's Canada Revenue Agency registration number; |
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| 5. The receipt's serial number; |
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| 6. The place where the receipt was issued; |
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| 7. If the donation is a cash donation, the day or year during which the donation was received; |
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| 8. The day on which the receipt was issued (if different from the day on which the donation was received); |
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| 9. The name and address of the donor (for an individual include his or her first name and initial); |
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| 10. The value of the donation on the date it was made; |
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| 11. The signature of an individual authorized by the organization to acknowledge donations, (where a charity generates its official receipts automatically, the receipts may bear a facsimile signature).; and |
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| 12. If the donation is a gift other than cash: |
| i) The day on which the donation was received, |
| ii) A brief description of the property, and |
| iii) The name and address of the property appraiser if an appraisal was done; |
| The CRA amendments to the requirements are: |
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| 13. The name of the Canada Revenue Agency; and |
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| 14. The Agency's website, http://www.cra.gc.ca/charities.html . |
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| The CRA does not take issue with the use of facsimile signatures but does require that receipts that are pre-printed with these signatures be kept at the charity’s head office, are distinctively imprinted, and are serially numbered. |
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| If you have any questions about the foregoing please feel free to contact me at adamapt@drache.com. |
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