Odd Fellows, Charitable Donations and Tax Receipts
Are you curious why you attended an Odd Fellows event but received a tax receipt from another organization? Perhaps the tax receipt was for less than the donation you made to attend the event?
Below is some information that will hopefully answer some of those questions.
Q: I attended an Odd Fellows event but received a tax receipt from another organization.
A: The Independent Order of Odd Fellows, Columbia #2 is not a registered non-profit charity and as such, we are not able to issue tax receipts. We often partner with local registered charities who can issue tax receipts, and this is why you received a tax receipt from a different charity.
Legally, tax receipts cannot be issued for donations received on behalf of that charity. Only the charity itself can issue receipts for donations. If a charity lends its registration number for receipting purposes, its registration could be revoked.
In these cases, we will advertise the charity we are partnering with so that you know who you are donating to, and who will send you the tax receipt.
You can read more on this topic here: http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/fndrsng-eng.html
Q: I bought a ticket to a charity event/dinner, but my tax receipt was for less than I paid.
A: While we appreciate your gift, tax laws state that when a charity provides food and entertainment (or something of value) then only a portion of the gift is eligible for a tax receipt. In these cases, a method called split receipting is used to calculate the eligible amount of a gift for receipting purposes when the donor has received an advantage (consideration) in return for his or her donation.
To figure out the eligible amount of the gift, a charity has to subtract the fair market value (FMV) of the advantage from the FMV of the gift.
You can read more on this topic here: http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/splt-eng.html
Q: How is the eligible taxable receipt amount calculated from the original donation?
A: There are many factors that go into this calculation, but essentially a fair value is assigned to the benefit you receive (dinner, entertainment, auction item etc.) and this is then subtracted from your donation amount.
You can read more on this topic here: http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/fndrsng-eng.html#N1041D
Q: I would like to make a donation to a Silent Auction, can I get a receipt?
A: Yes, provided we are working with a registered charity for that event. A receipt can be issued to the donor for the fair market value of the item at the time it is donated to the charity.
You can read more on this topic here: http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/fndrsng-eng.html#N10354