Sign up for our free Charity Law Newsletter.
» Signup Here Now

» View our Newsletter Archive

Even a charity operating in good faith, may inadvertently provide donors with a receipt that is deficient in some way. In such an instance, the charity is liable to a penalty to the charity of 5% on the eligible amount stated on the receipt for a first offence and 10% for a second offence. However, the greater penalty is perhaps to the charity s reputation when the CRA disallows a donor s official tax receipt. Therefore, it is important that the charity not make any errors on the receipts that it issues and that it only issue receipts for properly made donations.