January 16, 2019
Need some help finding sponsors and/or donors for your upcoming golf tournaments or other events for 2019?
With golf season and other outdoor events beginning over the next few months, I would like to share some information with you regarding the difference between a sponsor, donor, and gift in Kind, as some nonprofit organizations I have met with still require some clarity around this.
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.
If you would like to learn more about how my experience and skills may be able to help benefit your nonprofit, or a nonprofit you may be associated with, please don’t hesitate to get in touch with me as I would be pleased to meet and discuss the opportunity of working together.
I hope you enjoy my postings and find this information useful. Please follow the link at: https://raveresults.ca/blog/ as I welcome your comments on my Blog.
Mitchell Ravvin, BComm, PFPC, CFRE
Rave Results Inc.
7436 21A Street SE
Calgary, AB T2C 0V9
Rave Results Inc. is a professional fundraising service specializing in assisting mid-size nonprofit organizations. Areas of expertise include: Donor Development, Major Gift Fundraising, Sponsorship, Planned Giving, and both Annual and Capital Campaigns.