Issuing Donation Receipts Correctly 2025 — How to Meet CRA Requirements and Avoid Penalties

Donation receipts are the cornerstone of charitable giving, but CRA imposes strict rules on their issuance. In 2025, CRA’s digital verification system automatically cross-checks donor claims against registered charities’ T3010 filings. Errors in receipts can lead to penalties, audits, or revocation. Mackisen CPA Auditors Montreal ensures your charity issues compliant, verifiable receipts every time.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 110.1: Allows tax deductions for gifts to registered charities.
Section 118.1: Outlines credit entitlements for individual donors.
CRA Guidance CG-002: Details mandatory receipt information, including registration number, value, date, and signature.
CRA Policy CPS-012: Defines acceptable non-cash donation valuation methods.
Taxation Act (Quebec): Mirrors federal rules; Quebec residents receive both federal and provincial donation credits.

Key Court Decisions

Klotz v. The Queen (2004): Denied inflated donation receipts for non-cash gifts lacking valuation evidence.
Michaels v. The Queen (2019): Reaffirmed CRA’s right to disallow receipts issued by unregistered organizations.
Canadian Magen David Adom v. Canada (2018): Upheld CRA’s authority to revoke charitable status for repeated receipt errors.

Why CRA and Revenu Québec Audit Receipts

CRA uses automated data analytics to match receipts against donor claims. Discrepancies or incomplete receipts trigger audits. Common errors include missing registration numbers, incorrect valuation for non-cash gifts, and duplicate receipts. Mackisen prevents these issues by implementing digital receipt systems and internal verification protocols.

Mackisen’s Strategy

1. Receipt Compliance Audit — Review all issued receipts for mandatory information.

2. Valuation Support — Obtain independent appraisals for non-cash donations.

3. System Automation — Implement CRA-approved e-receipt software.

4. Recordkeeping — Maintain donor logs for seven years as per CRA requirements.

5. Audit Defense — Respond to CRA inquiries and resolve discrepancies quickly.

Real Client Experience

A Montreal foundation faced CRA reassessment after issuing incomplete receipts. Mackisen corrected the format, retrained staff, and cleared all penalties. Another Quebec charity under review for inflated art valuations relied on Mackisen’s expert appraisal process to maintain compliance.

Common Questions

Can I issue receipts for volunteer hours? No, only for monetary or property donations.
Do electronic receipts count? Yes, if they meet CRA’s digital standards.
Can I reissue lost receipts? Yes, with “duplicate” clearly marked.

Why Mackisen

Mackisen CPA Auditors Montreal ensure every receipt meets CRA and Revenu Québec standards. Our team automates compliance, manages audits, and protects your charitable registration. Call Mackisen CPA Auditors Montreal today for your 2025 Donation Receipt Compliance Consultation. The first meeting is free and ensures your donors and CRA trust your reporting.