R9. Our charity received a gift from another registered charity. Should we issue an official donation receipt to the other charity?

Short answer

No, you should not issue official donation receipts to other charities. Charities do not pay taxes, therefore do not need an official donation receipt. You do need to give your charity registration number to the other charity for its reporting requirements.

Long answer

In cases where a donation is received from a charity, a normal business receipt is sufficient to acknowledge the gift.

Business receipts are also used in the case of acknowledging other transactions that are not eligible for an official donation receipt, such as sponsorship where there has been a clear advantage to the business.

Registered charities must keep track of gifts received from other registered charities as these amounts are required to calculate the disbursement quota.

For more information see: www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/gfts/rgstrd-chrts-eng.html