S16. Our charity was offered a one week stay at a holiday condo as an auction item. Can we issue a charitable receipt to the donor for the FMV of the gift?

S16. Our charity was offered a one week stay at a holiday condo as an auction item. Can we issue a charitable receipt to the donor for the FMV of the gift?


Short answer

No. One of the criteria for a gift is that there be a voluntary transfer of property. In this situation, no property is being transferred—instead, use of the condo is being provided. Since no property is transferred, no “gift” is made. A tax receipt for the value of the loan of condo cannot be issued. p>

Long answer

Although the loan of property does not constitute a gift, a charity may pay rent on a property to an individual and later accept a gift of all or part of the payment, as long as the gift is voluntary. The charity may then issue a donation receipt for tax purposes. The donor would have to report the income earned but would be able to claim the tax relief associated with the gift.