Summary Policy

Date
September 3, 2003 (Revised November 23, 2005)

Reference Number
CSP - M05

Key Words
Membership fees

Policy Statement

A qualified donee can issue an official donation receipt for the eligible amount of the payment of membership fees. To determine the eligible amount, the donee must take into consideration the advantage received or obtained by the member in return for the payment.

Where the advantage does not exceed 10% or $75, the full amount paid in regard to membership fees is receiptable. However, where the advantage exceeds 10% or $75, the donee must deduct the amount of the advantage from the amount of the payment.

For example, for a contribution of $100, a member receives a pen valued at $15. Since the advantage exceeds 10% (i.e., 10% of $100 = $10), the donee can issue an official donation receipt for $85 (i.e., eligible amount = $100 - $15).

References

• Consideration, CSP-C13.
• Gift (donation), CSP-G01.
• Receipt, CSP-R02.
• Income Tax Technical News, Issue 26.
• Registered Charities and the Income Tax Act, RC4108.