Issuing a tax receipt to another charity

Q. We (a registered charity) just received a sizable donation from another registered charity (a private foundation). Should we issue them an official donation receipt?

Quick Answer: No.

Comprehensive Answer: Charitable receipts are required for tax deduction or credit purposes only. Registered charities however, do not pay income tax, ergo, they do not need a donation receipt.

Note: For relationship purposes, you may (or perhaps should) acknowledge the gift by way of letter. Also, you should provide your charity’s registration number to the donor charity, as it will need it for its reporting requirements.

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