Amy’s Bunny Barn Society, like all registered charities, must comply with the Canada Revenue Agency Income Tax Act when issuing charitable donation tax receipts. The CRA has strict rules regarding which types of donations are eligible for receipting. Detailed guidance is available on the CRA Charities and Giving website.

A. Businesses

1. Gifts in Kind

In general, there is no tax benefit to a business for receiving a charitable donation tax receipt for items donated from inventory, as these donations are typically treated as a business expense.

A business that donates inventory may deduct the cost of the inventory as a business expense. If a charitable donation tax receipt is requested, the business must include the fair market value of the donated property as income, which is then offset by the charitable donation deduction. As a result, no additional tax benefit is generally obtained from the charitable donation tax receipt.

If a business requires a charitable donation tax receipt, Amy’s Bunny Barn Society will accommodate the request where permitted by CRA rules.

2. Services

The CRA does not permit charitable donation tax receipts to be issued for donations of services. Contributions of services, including gift certificates donated by a vendor, retailer, or service provider, are not considered property and do not qualify as gifts for receipting purposes.

B. Individuals

1. Gifts in Kind

Where permitted, a charitable donation tax receipt may be issued for items, including gift cards or gift certificates, donated by individuals, provided the donation is accompanied by an original purchase receipt or a professional appraisal.

A charitable donation tax receipt will not be issued for auction items where the fair market value cannot be clearly determined.

When a donor is a hobbyist and donates items they have personally made, the donor is generally not eligible for an official donation receipt.