S5. Our charity wants to show its appreciation for a volunteer who spent many hours on a project. Can we issue a donation receipt for the volunteer's services?
Short answerLong answer
No. Contributions of services (that is, time, skills, or effort) do not qualify as gifts. To qualify as gifts, there has to be voluntary transfer of property.
To show its appreciation, your charity could pay the volunteer for services rendered and later accept the return of all or a portion of the payment as a gift, provided it is returned voluntarily. An official donation tax receipt can then be issued. In this case, the volunteer is responsible to claim the income.