ABCs, The Annual Blessing of Charitable Receipts - Part 1, Accurate Receipting
Happy New Year! For many charities and churches, it’s time to close off the previous year and then issue charitable tax receipts.
Each receipt tells a story. Someone cares enough about your organization to send you money. Your ministry is that important to them.
This blog begins a two-part series on turning the chore of annual receipts into a blessing. The goal is both accurate and grateful communication. This post leans into accurate receipting, the next post will talk about adding thank-you letters, something I am passionate about. But first, getting the receipts ready.
Begin with gratitude
Could you begin with a prayer of gratitude before you start the work of balancing the books and preparing receipts? Remember too that your work as a steward of these generous gifts is a gift in and of itself.
Ensure your donor information is correct
It’s easier to fix donor data before you send out receipts than it is to re-issue receipts. It’s also courteous and respectful to get people’s names right.
This next part is painful: make sure to keep track of donors who have passed away. The estate still gets a receipt, but you’ll want to send a different type of letter.
The Apostle Paul tells the Corinthians that administering the collection honours the Lord (2 Cor 8:19-21). Yes, the government has rules and we want to honour our donors, but first and foremost we want to honour God.
How to receipt correctly
Don’t receipt gifts received from a charity or foundation.
Your church should not be issuing receipts to CanadaHelps; as a charity, they receipt the donations they receive, then pass funds to Canadian registered charities.
I’m a big fan of CanadaHelps - they handle all the technology and the receipting and then deposit the money straight into your charity’s bank account. Yes, they retain a small percentage for their important work of helping charities. I doubt your charity could hire someone to do the receipting for less.
Similarly, don’t receipt gifts received from a foundation or from donor-advised funds because those gifts have already been receipted.
Don’t receipt if you are not sure who gave the gift.
If the daughter writes a cheque but wants her dad to get the receipt, that’s not going to work. There is a useful infographic on this CRA webpage that might help.
Resources
I am not an accountant nor a lawyer, merely a humble blogger passionate about the spiritual discipline of giving. Here are some resources I’ve found useful:
Sample receipt to copy
There are very specific requirements for receipting. The CRA offers sample receipts here:
Remember that your organization needs to keep copies of receipts issued. Your charity must be able to reissue a receipt if required.
A Canadian Centre for Christian Charities membership is a worthwhile investment, and they offer many resources on receipting, church policies and much more.
Canadian Charity Law Blumberg’s Canadian Charity Law Firm offers a comprehensive blog and resource website at https://www.canadiancharitylaw.ca/