Can a charity lend its registration number to another organization for receipting purposes?
No. Under no circumstances should a registered charity lend its registration number to another organization for receipting purposes. A registered charity is responsible for all tax receipts issued under its name and number and must account for the corresponding donations on its annual information return. A charity that lends its registration number risks losing its charitable registration.
What are the consequences for charities that issue receipts with incorrect or false information?
A registered charity that issues an official donation receipt that includes incorrect or incomplete information is liable to a penalty equal to 5% of the eligible amount stated on the receipt. This penalty increases to 10% for a repeat offence within five years.
A registered charity that issues an official donation receipt that includes deliberately false information is liable to a penalty equal to 125% of the eligible amount stated on the receipt. If the charity is liable for penalties in excess of $25,000 for issuing false receipts, that charity is also liable to one year's suspension of its charitable status. A registered charity that contravenes or continues to contravene the receipting requirements of the Income Tax Act could also have its registration revoked.
No. Under no circumstances should a registered charity lend its registration number to another organization for receipting purposes. A registered charity is responsible for all tax receipts issued under its name and number and must account for the corresponding donations on its annual information return. A charity that lends its registration number risks losing its charitable registration.
What are the consequences for charities that issue receipts with incorrect or false information?
A registered charity that issues an official donation receipt that includes incorrect or incomplete information is liable to a penalty equal to 5% of the eligible amount stated on the receipt. This penalty increases to 10% for a repeat offence within five years.
A registered charity that issues an official donation receipt that includes deliberately false information is liable to a penalty equal to 125% of the eligible amount stated on the receipt. If the charity is liable for penalties in excess of $25,000 for issuing false receipts, that charity is also liable to one year's suspension of its charitable status. A registered charity that contravenes or continues to contravene the receipting requirements of the Income Tax Act could also have its registration revoked.
