Tax Receipting Information

Markham Stouffville Hospital Foundation is committed to following all rules and regulations regarding tax receipting set out by the Canada Revenue Agency (CRA). This is important to protect our charitable status.

The following outlines receipting guidelines pertaining to purchasing an auction item or donating towards the auction. It is very important that you review and understand these rules before supporting our Gala.  

If you have any further questions, please contact Madeline Cuadra at mcuadra@msh.on.ca or 905.472.7373 ext. 6970.


Individual Contributions

AUCTION PURCHASES:
If someone purchases an item at an auction, they are receiving something (the purchased item, as well as the opportunity to participate in the auction) for their money and thus a tax receipt will not be issued.

GIFT-IN-KIND DONATIONS:
If an individual donates an item, the fair market value must be established for the item. This can be done by:
• Providing a purchase invoice or other proof of purchase
• Having an independent third party appraise and value the item
• Obtaining a current price list for the item at a recognized commercial enterprise operating independently of the donor
• A tax receipt cannot be issued for personal services; including; legal, entertainment, transportation, or dining services.

DONATIONS OF ARTWORK:
Additional requirements for donations of artwork:
• a list of credentials for the appraiser
• a history of the artist
• a description, picture and history of the piece of artwork including significant points of reference
• the methodology used to value the artwork
• reference to recent market purchases used to substantiate market value
• proof of the date of acquisition of the artwork and a statement that the artwork was not purchased for purposes of donation
• One page boiler plate appraisals, e-mailed appraisals, scribbled appraisals, or appraisals written in pencil are not valid
• Appraisals must be signed by the appraiser

DONATIONS OF WINE:
Additional requirements for donations of wine:
• a list of credentials for the appraiser
• a description of the wine donated and its physical state or other relevant conditions
• the methodology used to value the wine
• reference to recent market purchases used to substantiate market value
• proof of the date of acquisition of the wine and a statement that the wine was not purchased for purposes of donation
• One page boiler plate appraisals, e-mailed appraisals, scribbled appraisals, or appraisals written in pencil are not valid.
• Appraisals must be signed by the appraiser.

Corporate Contributions

BUSINESSES DONATING INVENTORY
Markham Stouffville Hospital Foundation can provide the donor with a gift in kind letter stating the value of the gift (requires backup to validate the price of the item/s). This letter can be used to write off the donation.

BUSINESS GIFT-IN-KIND DONATIONS
Businesses can deduct the original cost of the inventory as a business expense and not lose the tax benefit associated with the transfer of property. The Foundation will issue a gift in kind letter that can be used to verify the write off of the inventory.
• Donations of Artwork (See ‘Donation of Artwork’)
• Donations of Wine (See ‘Donations of Wine’)

BUSINESS DONATION OF SERVICES
Tax receipts cannot be issued for services provided, including; personal, professional, or legal services.

FAIR MARKET VALUE
Fair market value is "the highest price, expressed in a dollar amount that the property (good) would bring, in an open and unrestricted market, between a willing buyer and a willing seller who are knowledgeable, informed and prudent and who are acting independently of each other".

• Fair market value does not include taxes, commission, etc.
• If the fair market value cannot be established (e.g., what is the value of meeting a celebrity?), then a tax receipt cannot be issued.
• Even if a sponsor has paid to cover costs, or has donated or discounted the price of the entertainment, food, etc, the same rule applies and only the price beyond the fair market value would apply for a tax receipt.
• A complete list of all benefits to the participants and their value must be included in your documentation in order for tax receipts to be issued. Your "benefits" list must also include items and services donated or discounted for the event.
• An item of benefit exceeding 10 per cent of the total benefit value must be supported by a quote from the supplier. We reserve the right to request documentation on all items.