Employee workplace campaigns may solicit donations of items to raise additional campaign funds (such as early bird draw incentives or silent auction prizes). Many items may be donated — however receipts can only be issued for donations of physical goods (not services). The type of receipt issued is referred to as a gift-in-kind tax receipt, which is different from the tax receipt issued for cash donations.
Frequently asked questions
What types of gift-in-kind donations does United Way receipt?
• Items where a fair market value can be established and documented
• Items valued at $100 or more
• Donations of physical goods
• Physical goods out of the inventory of a business
• Gift certificates purchased by an individual and donated to the campaign
NOTE: Taxes are not receiptable.
How is the fair market value of donated items established in order to issue a tax receipt?
For donations from individuals
According to Canada Revenue Agency guidelines, in order to issue a tax receipt United Way Simcoe Muskoka requires official documentation supporting the fair market value of the donated item, such as an appraisal by an independent third party, sales receipt, price printed on item (for example, tickets), or a comparable item in a catalogue. Tax receipts can only be issued when this documentation is on file with United Way Simcoe Muskoka.
For donations from corporations
If a corporate donation is from inventory (such as a donation of clothing from a retailer), an invoice may be submitted to establish fair market value. The corporation may also establish the fair market value in the ways outlined above under the individual section.
How can a gift-in-kind tax receipt be requested?
UWSM Director, Strategic Initiatives