In order for a donation or gift to a Charity be eligible for a receipt, according to the Income Tax Act, it must satisfy the following 3 elements:
- Voluntary: The gift must have been given by the grantor's free will. If the donor was obligated to give the gift as a result of a court order or contract, the donation would not qualify for charitable receipt;
- Transfer of the donation to a Registered Charity;
- Property, not services: Donations must be in the form of cash or "Gifts in Kind" (see yesterday's Q & A). Services, like cutting the lawn or lease of premises, are not "Property" and are therefore not considered gifts.