Tax Receipt Guidelines
Tax Receipt Rules for Specific Gift Types
Tax receipts can be issued for a charitable donation of $15 or more, in which there was no exchange of service or products.
If tax receipts are to be issued, the full name (individual and company), mailing address, telephone number, language preference and amount of donation for each donor must be clearly listed and provided to the MUHC Foundation no later than 30 days after the event. The tax receipt will be issued to the person who made the donation. Receipts will not be issued in the absence of a donor’s name and address.
TICKET PURCHASE: A tax receipt is not issued for a ticket purchase or entrance fee to an event because the person is receiving something in return for the funds paid. If the ticket price exceeds the Fair Market Value (FMV) a receipt may be issued for the amount given above the FMV. For example: If someone buys an event ticket for $100 and the FMV of the entertainment, food and drinks is $65 then a tax receipt can be issued for $35 (the portion of the ticket price that reflects the true charitable donation beyond the value of the event).
DONATIONS & PLEDGES: A donation by cash, cheque or credit card given directly to the MUHC Foundation without receiving any benefit can be issued a receipt. Please ensure cheques are made payable to the MUHC Foundation with reference to the event name on the bottom or back of the cheque.
AUCTIONS: A tax receipt cannot be issued for auction items because the participant receives something in return as well as the chance to participate in the auction. Exception: If the winning bidder pays more than the value of the auction item, a partial receipt can be issued for the amount given above the item’s value.
SPONSORSHIPS AND ADVERTISEMENTS: A tax receipt is not issued for sponsors or company advertisements because they receive benefits in the form of recognition and advertising. However, we can provide a letter confirming their gift.
A list of all potential sponsorship contacts must be reviewed and approved by the MUHC Foundation before sponsors are approached in any way. Please remember that many local organizations may already have a long-standing history of involvement with the MUHC Foundation. While confidential donor information may not be revealed, staff can assist in strategy development for potential sponsors.
GIFT IN KIND: A gift in kind is defined as the donation of a product or service that carries no expense. A tax receipt may be issued when an individual donates an item if the Fair Market Value is established and documented. Documentation required can include: proof of purchase or invoice, independent third party appraisal or a current price list for the same item from a recognized business operating separately from the donor.
A tax receipt cannot be issued for personal services including: legal, entertainment, transportation, rentals or dining services.
Gifts of artwork and alcohol may also require information such as: a list of credentials for the appraiser, a history of the artist, a description, picture and history of the piece, the methodology used to value the artwork or product, and more. Please be sure to notify the MUHC Foundation staff of potential gifts of artwork or alcohol.