Donation Receipt for business

I'm sure you know that this isn't legal.

loudyca wrote: ↑ Hi, I work as web developer and I was contacted by small non for profit organization (registered charity in Canada), they like to have a website but they only have budget $300. so I told them that is too low, they said they can give you donation receipt too for the work.

So I'm not sure how that will work. they only giving $300 but they said they will also provide me a donation receipt for $1000

What I can do in this situation, as this is new to me, and can they issue donation receipt for the worth of the work.

Do I need to create invoice for $1300 to them or only $300. or how this will work?
how I'm going to record it in QuickBooks. and then in my income tax?


Please help.

I can't see how you'd benefit from this.

If you treated this as a charitable contribution through your company, you'd need to invoice for $1300, treat $300 as receivables and $1000 as a donation (expense). You'd be no better off except you'd have a $1000 expense to explain to CRA.
So you are no further ahead than if you'd just charged $300.

If you are getting a charitable receipt personally, you are likely doing something illegal or at a minimum, tax evasion.
I'd be very worried about any charity that will issue donation receipts like this, they are typically the ones that come under CRA scrutiny.

IMO decide based on the $300 and client reference you may obtain from the task. Charity has its own rewards.

This sounds like a donation in-kind if you are not receiving cash for the work performed. There may be a legal mechanism for obtaining a legitimate receipt but I would suggest reviewing the attached link for more information:
https://www.canada.ca/en/revenue-agency ... gifts.html

Disclosure: I'm not an accountant.

It's my understanding that you can't receive a tax receipt for services. I suppose you could invoice the charity for $1,300 have the charity pay you then donate $1,000 back to them. Of course, you will have to show that you regularly charge $1,300 for your services and didn't inflate your fee in any way.

Thank you all, usually I charge $3000 for this type of work but I thought to help them, as I have done lots of charity works and never asked for payment. But they offered me that this time.

But it seems the Canadian government is complicated when it comes to legitimate tax deductible expenses. But they are more than happy to give money out to Air Canada and the big corporations i oil and gas who pays monthly to their ceo what i can make in 50 years of working and to pay dividend to their shareholders. Wow what a great socialism system here.

loudyca wrote: ↑ Thank you all, usually I charge $3000 for this type of work but I thought to help them, as I have done lots of charity works and never asked for payment. But they offered me that this time.

But it seems the Canadian government is complicated when it comes to legitimate tax deductible expenses. But they are more than happy to give money out to Air Canada and the big corporations i oil and gas who pays monthly to their ceo what i can make in 50 years of working and to pay dividend to their shareholders. Wow what a great socialism system here.

More than happy to give TAXPAYERS' hard-earned money out. (Some people don't realize where the government actually gets its money.)

Yes that is correct, they become so strict on small business and personal taxes. But if the big corporations needs the money they give them without accountability.

Even thought the big corporations do not pay taxes because they fligh their employees on first class seats and they give spending accounts to their staff

Very nice of them.

loudyca wrote: ↑ Yes that is correct, they become so strict on small business and personal taxes. But if the big corporations needs the money they give them without accountability.

Even thought the big corporations do not pay taxes because they fligh their employees on first class seats and they give spending accounts to their staff

Very nice of them.

And that is just an example you know about. Some are asking about others but this is yet to be revealed. I don't necessarily believe all that I read and don't trust most media sources but this will give you some flavour of what I am referring to:
https://www.cbc.ca/news/politics/covid- ... -1.5826917

If the not-for-profit is openly doing this, they should be reported to the CRA.

The Charities Directorate discuss this issue here:
https://www.canada.ca/en/revenue-agency ... vices.html

IF there was an actual payment coming from the charity for $3000 and you donate back $2700 via another cheque/EFT/etc, that's a different story (and the CORRECT way of getting a donation receipt)

Talk to an accountant. Instead of making it a donation how about make it some kind of promotional expense on your end.