Topics: What's New from the Charities Directorate of CRA, Planned Giving and Canadian Charities, Ethics and Canadian Charities
Many Canadian charities conduct gala dinners although it seems fewer than in the past. We recently spoke to CRA regarding the amounts that should be deducted for gala dinners as an advantage when issuing receipts. CRA said that any costs to set up the event, eg. venue, flowers, decorations, etc. are considered to be fundraising costs and should be reflected as such on the T3010 but in terms of the amounts that need to be deducted from an official donation receipt, it would be the value of the meal, drinks, advantage etc. received by the donor – not necessarily the costs.
Essentially what would a donor would pay to have a dining experience at a similar venue. In terms of “nicer” venues, they said that while the venue cost isn’t necessarily deducted as an advantage, it is generally factored into the value received by the donor since dinner at a similar “nicer” venue will likely be higher, thus a higher advantage received.
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.