Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether a registered charity can issue a receipt to the coordinator of a fundraising event who has collected funds during the event and has paid the amount to a registered charity.
Position: No.
Reasons: A donation receipt is issued to the donor of the gift.
XXXXXXXXXX 2003-005317
Luisa A. Majerus
March 3, 2004
Dear XXXXXXXXXX:
Re: Third Party Fundraiser
This is in reply to your letter of December 15, 2003 requesting our views on whether a coordinator of an event who collects funds from the general public and pays the amounts to a registered charity would be entitled to a donation receipt.
Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an Advance Income Tax Ruling request. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. However, we are prepared to provide the following comments.
As provided in Interpretation Bulletin IT-110R3 (Gifts and Official Donation Receipts) a gift is made if a donor transfers property to a registered charity; the transfer is voluntary; and the transfer is made without expectation of return. Where a transfer of property constitutes a gift for tax purposes, the charity is entitled, pursuant to paragraph 3501(1)(h) of the Income Tax Regulations, to issue an official receipt for income tax purposes to the donor. The donor may only claim a tax credit in respect of charitable gifts made by him/herself.
The coordinator, in this situation, appears to be acting as an agent for the persons from whom the funds are collected. The property transferred to the charity is the property of the persons from whom it was collected on the understanding it would be given to the charity. Those persons are entitled to a charitable receipt.
It is our view that where a coordinator of an event collects funds from the general public and pays the amounts to a registered charity the coordinator would not be the person entitled to a donation receipt.
We trust these comments will be helpful.
Yours truly,
F. Lee Workman
Manager
Financial Institutions Section
Financial Industries Division
Income Tax Rulings Directorate
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