Tax Receipting


March of Dimes Canada is a registered charity and will automatically issue tax receipts for donations of $20 or more. Donations made online will be issued to the email address provided by the donor. Receipts for all other donations will be mailed out to the address provided by the donor.

Receipting Guidelines

Charitable donation receipts are issued in accordance with Canada Revenue Agency (CRA) guidelines. The following descriptions, although not inclusive, attempt to deal with the most commonly asked tax receipting questions.

For more information about receipting, please contact March of Dimes’ Fundraising Department at 416-425-3463 or call toll free 1-800-263-3463.

GENERAL RULES

  1. A charitable donation receipt can only be issued to the issuer of the cheque.
    Unless the cheque issuer acts as an agent for collecting and remitting donations from various persons/parties (i.e., an employer of an employee fundraising initiative). Donation receipts can be issued to the persons/parties provided that the nature of the monies can be receipted and a complete and legible list of donor information (donor name, address, and postal code) is provided to the March of Dimes.

    A donation receipt cannot be issued in another name (i.e., on behalf of someone).

  2. A charitable donation receipt can be issued for a GIFT IN KIND.
    Gifts in kind include (but are not limited to) capital property, depreciable property, personal-use property, shares and inventory of a business. A gift in kind does not include a gift of services.

    A donation receipt may be issued for the fair market value (FMV) of the property/goods on the date it is received.

    If the item is new and has been recently purchased, a receipt or invoice is adequate proof of FMV.

    All property with a fair market value >$1,000 must be valued by a qualified appraiser independent of the donor and the March of Dimes.

    To receive a donation receipt for a gift of inventory March of Dimes requires an invoice. Most businesses prefer to claim the donation of inventory as a business expense.

  3. A charitable donation receipt cannot be issued for SERVICES.
    Services include professional, business and personal services. Examples of services are legal, accounting, recreation, entertainment, transportation, dining.

    Services may be paid by the March of Dimes, and we may accept the voluntary return of all or part of the payment as a donation. This process is known as a "cheque exchange". The donor declares payment for services as taxable income and receives a charitable donation receipt for the same amount.

  4. A charitable donation receipt cannot be issued for SPONSORSHIPS.
    Where a business gives cash or merchandise to the March of Dimes, and receives a material business advantage such as promotional or advertising services, the business has not made a gift according to CRA and the March of Dimes cannot issue a charitable donation receipt.

    In these circumstances, the business can usually claim the cash payment or value of the merchandise as a business expense.

  5. A charitable donation receipt cannot be issued for a LOTTERY TICKET, OR EVENT TICKET purchased to attend the event.
    The cost of a lottery and an event ticket is not considered a gift because the ticket offers the purchaser a chance to win prizes and attend the event.

  6. There are two types of charitable donation receipts issued at an AUCTION.
    a) A charitable donation receipt may be issued for property donated to the Foundation for the auction

    A receipt can only be issued for property not services.

    A receipt will be issued for FMV of the auction item (FMV = the lesser of either the FMV or what the donor paid for the auction item).

    If FMV cannot be established then no receipt can issued.

    Businesses donating inventory may receive a receipt for retail value of the auction item.

    b) A charitable donation receipt may be issued for property that is purchased during the auction

    A receipt can be issued for the bid price in excess of FMV provided:
    – FMV is established and announced in advance; and
    – The difference meets the intent to give threshold.

    The intent to give threshold can be calculated in advance by multiplying the FMV by 125%

    Example:
    – Wine donated (FMV) $200
    – Intent to give threshold $200 X 125% = $250

    For bid prices of $250 or more, a tax receipt can be issued for the difference between the bid price and the FMV of the item.
    FMV Intent to Give Threshold Bid Price Tax Receipt
    $200 $250 $270 $70
    $200 $250 $220 $0

Tax Calculator
How is my tax credit calculated?

The first $200 you donate is eligible for a federal tax credit of 15% of the donation amount. After the first $200, the federal tax credit increases to 29% of the amount over $200. Generally, you can claim all or part of this amount up to a limit of 75% of your net income. For gifts of certified cultural property or ecologically sensitive land, you may be able to claim up to 100% of your net income.

You may also be eligible for a provincial tax credit. The amount of the provincial tax credit available varies between provinces.

Donations must be made by December 31st to be claimed against your income for the current year. However, you do not have to claim all of the donations you made this year on your current-year return. You can carry forward any donations you do not claim in the current year and claim them on your return for any of the next five years. You can only claim donations once.

You have to claim tax credits for gifts you carried forward from a previous year before you claim tax credits for gifts in the current year. If you are claiming a carry forward, attach a note to your return indicating the year of the return with which you submitted the official donation receipt, the portion of the eligible amount you are claiming this year, and the amount you are carrying forward.

First Time Donor’s Credit

In the 2013 budget, the Federal Government introduced the First Time Donor’s Credit (the “FTDC”).

The FTDC will increase the value of the federal Charitable Donations Tax Credit by 25% if neither the payer nor their spouse has claimed the credit since 2007. The Federal credit on the first $200 used to be $30 at 15%, and now will be $80 at 40%; and for $1000 the amount used to be $282 at 29% and now will be $432 at 54%.

The FTDC will apply on up to $1,000 for cash donations made between 2013 to 2017.

The FTDC will only be available in the first year a donor or their spouse claims it.

Mobile Giving Tax Receipts

To request a tax receipt for your text donation visit  www.mobilegiving.ca and enter your mobile number. Click here for more information on Mobile Giving.


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