S2. A donor gave our charity a cash donation, but asked that the monies be forwarded to a specific family. Do we issue an official donation receipt?

S2. A donor gave our charity a cash donation, but asked that the monies be forwarded to a specific family. Do we issue an official donation receipt?


Short answer

No. Your charity may not issue a receipt if the donor has directed the charity to give funds to a specified person or family.

Long answer

A donation subject to a general direction from the donor that the gift be used in a particular program operated by the charity may be receipted as long as the donor or anyone close to the donor will not receive any benefits.

Example

An international development organization or faith-based group selects individuals who are eligible for an overseas posting based on the candidate for the placement raising a set amount of contributions to defray the cost of the trip and the posting. Under such arrangements, official donation receipts may not be issued for these contributions.

Exception

A donor may be able to receive a receipt for a gift directed toward a person, family, or other non-qualified donee if they have been identified beforehand by your charity as recipients of your charitable program. The charity, however, must be able to reallocate all donated funds to other charitable programs or activities when it deems appropriate.