“Is my donation eligible for a tax receipt?”
This is a question we get all the time at Federated Health Charities.
Generally speaking, Federated Health Charities can provide an official tax receipt when a donor gives a voluntary gift of cash and expects nothing in return.
For example, when you give money to Federated Health Charities by making a payroll pledge through WIN, submitting a pledge form through your local campaign or making a one-time donation, you are eligible for a tax receipt. You are also eligible for a tax receipt if you sponsor someone in a walkathon/marathon for $25 or more.
But when you buy something – a lottery ticket, an item at a bake sale or a silent auction – or pay to attend a special event, like a golf tournament, this money is not eligible for a tax receipt.
The difference is that in the second example, you have received an advantage in exchange for your contribution, like a delicious pastry or round of golf.
If you make a payroll pledge to Federated Health Charities (i.e. donate through an automatic deduction from your paycheque), the amount of your deduction will be included on your T4 – no need to worry about a receipt. If you make a one-time donation through our website, Canada Helps will send you a tax receipt on our behalf. If you make a one-time donation to Federated Health Charities by a credit card or a cheque, we will issue a tax receipt and mail it to your home address.
While items you buy from a silent auction are generally not eligible for tax receipts, you may be eligible for a tax receipt if you donate an item or a service to a charitable auction. Most donations of this kind are eligible for a tax receipt for the “fair market value” of the item(s) donated. However, there are some exceptions. Donations of services, for example, are not eligible for tax receipts. Instead, Federated Health Charities will issue a business receipt for the value of the service, which a business can write it off as business expense at the end of the year.
If you are planning to contribute an item or service to an event to benefit Federated Health Charities, please send us an email for more information about tax receipting guidelines.
Every donation to Federated Health Charities, big or small, goes to our charities to help people and families across Ontario experiencing serious illness and life-changing health conditions.
Thank you to all our volunteers and donors, past and present, for helping support the health of our communities for the last 40 years.