S18. Our charity received an anonymous gift. Since we do not have a name and address, do we have to issue a tax receipt? If we have to issue a tax receipt for the donation, how should we do it?
Short answerLong answer
No. Your charity is not required to issue official donation receipts for all donations.
Paragraph 3501(1)(g) of the Income Tax Regulations requires that an official donation receipt show the name and address of the donor (and for an individual, his or her first name and initial).
But the Canada Revenue Agency has made an administrative decision to allow registered charities to issue official donation receipts for anonymous gifts if these procedures are followed:
- the donor establishes an agency or trust agreement to make the anonymous gift
- the donor appoints an agent for the purpose of making a gift on his or her behalf
- the agent agrees to hold the funds in trust for the donor
- the donor directs the agent to make a gift to a registered charity on the donor’s behalf
- the agent agrees to direct the registered charity to issue a receipt in the amount of the gift in the name of the agent in trust
- the agent agrees to deliver the receipt to the donor for the purpose of establishing the details of the donation