D15. In split receipting, what is the "intention to make a gift" threshold?

D15. In split receipting, what is the "intention to make a gift" threshold?

When a donor has received an advantage in return for his or her gift to a registered charity, in order for the donation to qualify for an official donation tax receipt, the gift must meet what is called the “intention to make a gift” threshold.

In order to meet this threshold, the amount of the advantage received by the donor cannot exceed 80 per cent of the fair market value of the total property transferred.

Example

A donor gives a charity $200 and receives in return dinner theatre tickets worth $175.
  • The intention to make a gift threshold is $160 (80 per cent of $200)
  • The tickets, which have a fair market value of $175, exceed the threshold ($160) by $15.
  • Therefore, the gift is not eligible for an official donation tax receipt.