For a registered charity to determine whether or not a gift has been made, it must consider the following:

Was the gift made voluntarily?

• The donation must be given freely. If a donation is made as a result of a contractual or other obligation, it is not eligible for a receipt.

Was there a transfer of property?

• Only gifts of property are eligible for official donation receipts (for example, cash, computers, equipment).
• Gifts of service, and promises of service, are not gifts of property, and are not eligible for an official donation receipt.
• Gift certificates donated by the issuer do not constitute property and are not eligible for official donation receipts. However, a gift certificate purchased and then donated does constitute property, and may be receipted at its fair market value – SEE BELOW.

Can a registered charity issue official donation receipts for gift certificates?

• This depends on whether or not the donor is the issuer of the gift certificate. An issuer is the person (individual, retailer or business) that creates the gift certificate.
• A gift certificate purchased from the issuer and then donated to a charity is considered property and may be receipted for its eligible amount.
• A certificate donated by the issuer is not property, but rather a promise, and may not be receipted.

Registered charities can issue an official donation receipt when:

• The donor is not the issuer of the gift certificate; and
• The donor has purchased the gift certificate either from the issuer or another third party.

Can a registered charity issue official donation receipts for gifts of services?

A charity cannot issue a receipt for a gift of service. At law, a gift is a voluntary transfer of property  without consideration. Contributions of services (for example, time, skills, effort) are not property. Therefore, they do not qualify as gifts for the purpose of issuing official donation receipts.

Registered charities cannot issue official donation receipts for gifts of services.
However, they can issue receipts under the following conditions:

• If a charity pays a service provider for services rendered and the service provider then chooses to donate the money back, the charity can issue a receipt for the monetary donation (this is often referred to as a cheque exchange). In such circumstances, two distinct transactions must take place:
  • a person provides a service to a charity and is paid for that service; and that same person makes a voluntary gift of property to the charity.
• A charity should also make sure that it keeps a copy of the invoice issued by the service provider. The invoice and cheque exchange not only ensure that the charity is receipting a gift of property, but they also create an audit trail, as the donor must account for the taxable income that is realized either as remuneration or as business income.
• A charity should not issue an official donation receipt to a service provider in exchange for an invoice marked “paid”. This procedure raises questions as to whether in fact any payment has been transferred from the charity to the service-provider and, in turn, whether any payment has been transferred back to the charity./

Donated Item(s) can be delivered Monday to Friday between 9:00 am to 5:00 pm to VSO Office at:

500-833 Seymour Street, Vancouver, BC  V6B 0G4.

If pick up is required, please contact at 604.684.9100 ext. 237, or Email: vsogala@vancouversymphony.ca