4000-1-4Official Tax Receipt Guidelines for Non Cash Donations

Issue Date:
March 30, 1995

Upon request, the college will provide a copy of this policy in an alternate format.

Policy

  • A gift of property other than cash is usually referred to as a "gift-in-kind." To establish the value of a gift-in-kind, an appraisal must be done to determine the fair market value of the item on the date it was given. The generally accepted meaning of fair market value is highest price that the property would bring in an open and unrestricted market between a willing buyer and a willing seller who are both knowledgeable, informed and prudent, and who are acting independently of each other.
  • An appraiser should be someone who did not, or does not, have a material interest in the property being given and is not associated with the donor or with the charity.
  • Where a business donates to charity and receives a material advantage, such as promotion or advertising, the charity cannot issue an official tax receipt as the donation in not a gift at law.

Documentation Requirements of all "Gift-in-kind" Tax Receipts:

All of the following are required to be sent to the Vice-President Administration:

  • the date the donation is received
  • a brief description of the item(s) donated
  • the name and address of the donor
  • signature of the staff member who received the goods on behalf of Lambton College
  • Plus, all the items under (a), (b), or (c):
    1. Where goods were purchased shortly before the donation:
      • a copy of the invoice paid
    2. Where used goods are donated for a value of less than $1,000.00:
      • the date the item was evaluated
      • approximate original value of the item
      • current value of the item
      • approximate age of the item
      • name, phone number, and signature of the qualified individual who evaluated the value of the item (a qualified individual is one who is knowledgeable about the market value of the item)
    3. Where used goods are donated for a value of $1,000.00 for more:
      • the date the item was evaluated
      • approximate original value of the item
      • current value of the item
      • approximate age of the item
      • name, address, phone number and signature of the appraiser (a dealer or other individual whose work makes them knowledgeable about the market value of the item). This individual should not have a material interest in the property given and should not be associated with the donor or Lambton College.
  • If there are significant problems in obtaining the information above, the details should be discussed with the Vice-President Administration prior to accepting the donation if a tax receipt is expected.

For questions or concerns regarding policies, please contact:

Jim Elliott
Director, Quality Assurance & Institutional Research
519-542-7751 x 3489
jim.elliott@lambtoncollege.ca

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