This module covers basic information on how to issue proper tax donation receipts for a gift certificate. The module answers questions such as: Can official tax receipts be issued for gift certificates? If yes, under what circumstances? Why is a gift certificate considered to be a pledge or a promise? What’s the difference?
This module covers basic information on how to issue proper tax donation receipts for a gift certificate.
The module answers questions such as:
Can tax receipts be issued when your charity receives donations of gift certificates?
Yes, official donation receipts can be issued:
and
A gift certificate is considered a pledge or promise from a merchant to supply the goods and/or services specified on the face of the certificate.
Canada Revenue Agency has determined that a gift certificate constitutes property and a right, but only if the promise is enforceable, that is, only when the certificate was acquired for consideration, i.e. paid for.
If the gift certificate is donated by the issuer, it is a promise and not considered property.
So an official donation receipt cannot be issued.
More information can be found in CRA Guidance, CG-007, “Donations of Gift Certificates”
There are two FAQs on donation of gift certificate. They are available here.
Information in this module is provided for general educational purposes and not as legal or accounting advice. Consult a lawyer or accountant for professional advice.
Information is accurate as of 2019.
For changes after this date, consult Canada Revenue Agency.
This website was made possible with a financial contribution from the Canada Revenue Agency to the Centre for Public Legal Education Alberta.
The Centre for Public Legal Education respectfully acknowledges that we are located on Treaty 4, 6, 7, 8 and 10 territories, the traditional lands of First Nations, Métis, and Inuit.