A payment for a camp place is not automatically a charitable donation. A thank-you receipt and an official tax receipt are not the same document.
In Canada, only registered charities and other qualified donees may issue official donation receipts that support charitable tax claims. Confirm the actual organization's status before making promises.1
Where a donor receives a benefit, gift eligibility and the value of that benefit can affect receipting. CRA's split-receipting guidance is a starting point for Canadian review.2 In the United States, the IRS also distinguishes contributions from the value of goods or services received.3
Do not label ordinary camp fees as donations to make them seem tax-deductible. Ask a qualified accountant to review the actual transaction, any applicable rules, and the wording used with donors.
Keep separate records for fee invoices, grants, gifts, sponsorship benefits, refunds, and official receipts. Use controlled numbering and review where appropriate.
For a partner organization receiving funds, get professional advice and a written arrangement covering responsibility, eligible use, records, fees, and reporting. Do not improvise a receipt arrangement after a donor asks.
Your task: Have the finance lead approve each income type and document before money is accepted.
Sources for this page
- Canada Revenue Agency, Qualified donees. Who may issue Canadian official donation receipts; verify the actual organization’s status. ↩
- Canada Revenue Agency, Split receipting. Gift eligibility and the value of benefits received by a donor. Not a camp-fee tax opinion. ↩
- Internal Revenue Service, Quid pro quo contributions. U.S. guidance on payments that combine a contribution with goods or services. ↩