May 4, 2011
Anyone need some help with a golf tournament or other event?
With golf season and other events coming up over the next several months, I would like to share the following monthly message with you.
Please contact me if I can be of assistance with the success of your upcoming event(s) with help for sponsors, donors, and/or gifts in kind.
I look forward to hearing from you.
Sponsorship –Where a business gives cash or other property it may not necessarily
be a gift to the charity. If the expectation of the transaction is to receive a business advantage, such as promotion or advertising, the charity cannot issue an official donation receipt, as this is not considered a gift. For taxation purposes, the business can claim the transaction as a business expense.
Donations – Under the Income Tax Act, a qualified donee (e.g., a registered charity) can issue official donation receipts for income tax purposes for donations that legally qualify as gifts.
Gift in Kind: The fair market value of a gift in kind as of the date of the donation (the date on which beneficial ownership is transferred from the donor to the donee) must be determined before an amount can be recorded on a receipt for tax purposes. The person who determines the fair market value of the property must be competent and qualified to evaluate the particular property being transferred by way of a gift. Property of little or only nominal value to the donor will not qualify as a gift in kind. Used clothing would be an example of a non-qualifying contribution.