Employee workplace campaigns may solicit donations of items to raise additional campaign funds (such as early bird draw incentives or silent auction prizes). Many items may be donated — however receipts can only be issued for donations of physical goods (not services). The type of receipt issued is referred to as a gift-in-kind tax receipt, which is different from the tax receipt issued for cash donations.
Frequently asked questions
What types of gift-in-kind donations does United Way receipt?
- Items where a fair market value can be established and documented
- Items valued at $100 or more
- Donations of physical goods
- Physical goods out of the inventory of a business
- Gift certificates purchased by an individual and donated to the campaign
NOTE: Taxes are not receiptable.
How is the fair market value of donated items established in order to issue a tax receipt?
For donations from individuals:
According to Canada Reveune Agency guidelines, in order to issue a tax receipt United Way Toronto requires official documentation supporting the fair market value of the donated item, such as an appraisal by an independent third party, sales receipt, price printed on item (for example, tickets), or comparable item in catalogue. Tax receipts can only be issued when this documentation is on file with United Way Toronto.
For donations from corporations:
If a corporate donation is from inventory (such as a donation of clothing from a retailer), an invoice may be submitted to establish fair market value. The corporation may also establish the fair market value in the ways outlined above under the individual section.
How can a gift-in-kind tax receipt be requested?
Complete the gift-in-kind tax receipt request form.
Please ensure each section is completed. Due to CRA regulations no tax receipt will be issued if one of these sections is incomplete or does not have the appropriate signature.
United Way volunteers should forward the completed form along with fair market documentation to Kiran Rai, United Way Toronto, 26 Wellington St. E., 12th Floor, Toronto, ON, M5E 1W9.
Please call your United Way partner at 416-777-2001 if you have any questions prior to submission.
Section 1 – To be completed by United Way volunteer – Gift Verification
- Detailed description of donated item
- Fair Market value and documentation supporting the amount, that is an appraisal by an independent third party, sales receipt, price printed on item (for example, tickets), or comparable item in catalogue
- Date the item was donated
- Name of the donor
Section 2 – To be completed by donor – Mandatory
- Donor Name and address
- Donor Signature
Section 3 – To be completed by United Way Toronto (Internal use)
How will the donor’s information be used by United Way Toronto?
United Way Toronto will use the information provided on the gift-in-kind tax receipt request form to determine the value of the tax receipt and issue it appropriately.
What is the deadline for submitting documentation to United Way in order to receive a gift-in-kind tax receipt?
In order to receive a tax receipt for a gift-in-kind donation made in the current taxation year, all documentation must be supplied to United Way Toronto no later than January 15th of the following year.
What are the most common reasons for a delay in issuing a gift-in-kind tax receipt?
- The gift-in-kind tax receipt request form does not have acceptable supporting documentation
- The value of the gift-in-kind tax receipt being requested is less than $100
- The receipt request includes taxes
- Tax receipt request is for services, which are not receiptable
- Multiple types of items are recorded on one form
Download the gift-in-kind tax receipt request form (PDF—30KB).