Information about donations and how to verify if an organization is registered with the CRA - Segment 2

Transcript

Welcome to segment 2 called "Information about donations and how to verify if an organization is registered with the CRA", part of the "How to donate wisely - Information for donors" recorded webinar.

Information about donations and how to research a charity

What qualifies as a gift?

A gift or donation that qualifies for a charitable tax credit must be a voluntary transfer to a registered charity or qualified donee of ownership of property:

Some examples of ‘Property' include:

  • cash;
  • goods;
  • land;
  • listed securities; and
  • intangible property like copyrights and other rights to intellectual property.

As long as:

  • the value of the gift can be determined; and
  • In general, any benefit or advantage that the donor receives can be determined and is less than 80% of the value of the gift.

Not all donations to charities qualify as gifts for tax purposes.

Some common types of gifts that do not qualify for the charitable tax credit include:

  • contributions of services, such as time, skills, effort (and examples of this are legal or accounting services);
  • the payment of basic fees for admission to an event or program (for example, fees for daycare or nursery school facilities);
  • the purchase price of a lottery ticket or other chance to win a prize, even though the proceeds benefit one or more charities; and
  • the payment of tuition fees (however there are some exceptions).  

Charities listings

To research a charity and verify if it's registered, go to the CRA List of Charities . The listings provide online access to the public section of a charity's information return. The return must be filed no later than six months after the end of the registered charity's fiscal period. It includes: 

  • basic information such as contact details;
  • a list of directors/trustees or similar officials, with all the required information;
  • details of assets and liabilities, as well as revenues and expenditures; and
  • a list of qualified donees to which the registered charity gave funds (if applicable).

You can view the public portion of the return or use Charity Quick View to display a summary of a registered charity's activities, revenues, and expenditures.

If you prefer a more in-depth analysis of a charity's financial information, go to www.charityfocus.ca or by asking the charity directly.  Charity Focus is a tool developed by Imagine Canada in partnership with the CRA.

You can also see listings of other qualified donees, such as registered Canadian amateur athletic associations, municipalities, etc., under the main menu of the Charities and giving website.

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