G1. What are the essential elements of a gift or donation?

G1. What are the essential elements of a gift or donation?


Short answer

A gift must contain:

A Voluntary
Transfer
Of Property
given of one's free will; the donor must not be obliged to part with the property, for instance as the result of a contract or a court order by a donor to a Registered Charity or other qualified donee either in the form of cash or a gift-in-kind; services are not property and therefore are not considered gifts

Generally, a donor transfers the property to the charity without expecting anything in return.

Long answer

A transfer of property for which a donor receives an advantage is still considered a gift for the purposes of the Income Tax Act as long as the transfer of property was made with the Intention to Make a Gift. When the donor receives an advantage, an official donation receipt can still be issued using the concept of "split receipting".