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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Can charitable donation receipts be issued in respect to certain membership fees?
Position: No.
Reasons: Membership fees entitle payor to benefits.
XXXXXXXXXX 980854
W. C. Harding
Attention: XXXXXXXXXX
July 7, 1998
Dear Sirs:
Re: Donation Receipts
This is in reply to your letter of March 30, 1998, requesting information on the issuance of charitable donation receipts with respect to annual and life membership fees for your organization.
The enclosed Interpretation Bulletin IT-110R3 Gifts and Donation Receipts discusses the issuance of tax receipts for charitable donations. At paragraph 15(b) it states that receipts cannot be issued for:
(b) “The payment of membership fees that convey the right to attend events, receive literature, receive services, or be eligible for entitlements of material value. In this regard, the right to vote at meetings and receive reports of the charities activities - unless such reports are otherwise available for a fee - are not considered to be of any material value.”
Your annual membership fees includes 4 issues of your society newsletter and we presume the life membership would also entitle the member to receive the newsletter. Accordingly, it would not appear to us that receipts should be issued for these fees. You may wish to discuss this matter in greater detail with our Client Assistance Section, Charities Division at 1-800-267-2384.
Yours truly,
Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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