D8. What is split receipting?
Short answerLong answer
The term “split receipting” refers to the fact that, from the charity’s perspective, the donation is split into two portions:
- the portion for which the charity can issue a receipt (that is, the eligible amount)
- the portion for which the charity cannot issue a receipt (that is, the advantage).
Split receipting is a legislative concept in which a donor can receive something in return for a gift and still be eligible for a tax receipt. In such a case, the donor is said to receive an advantage and split receipting is required. The gift must, however, still be a voluntary transfer of property and must meet the intention to make a gift threshold, which means that there is a limit on how much advantage a donor can receive and still get a tax receipt.
Note that, to be taken into account for split receipting purposes, an advantage must meet the intention to make a gift threshold and exceed the de minimis amount for purposes of the donation). If the intention to make a gift threshold is surpassed, that is, the value of the advantage exceeds 80 per cent of the gift, no receipt may be issued for the transaction. If the de minimis amount is not met (the lesser of 10 per cent of the gift or $75), the advantage is not taken into consideration in determining the amount of the receipt.
For more information on split receipting, see