Question: Can we issue a donation receipt for services received? One of our members has repainted our classrooms and instead of payment has requested that we provide a donation receipt for the services.

In order to be able to offer a gift receipt, you must first meet the definition of a ‘gift’ per CRA. According to CRA you must ask:

  • Was the gift made voluntarily?
  • Was there a transfer of property?
  • Did the donor receive an advantage? If so, split receipting may be required

If your answers to these questions do not meet the definition of a gift, then there is no grounds for a receipt to be issued.

For the church to provide a donation receipt, the member should invoice the church for their services provided. The member can then choose to donate the funds back to the church.

The charity will want to ensure these two transactions are separate:

  • Person provides services to a charity and receives payment
  • Person makes a voluntary gift of property to the charity

For more details on this subject, see CRA’s website for Receiving Gifts: https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/operating-a-registered-charity/receiving-gifts/what-a-gift.html