Learning As We Go
Dear Friends and Supporters.
I made a big ooops.
I'm so thankful that our bookkeeper brought it to my attention before we wrapped up our year-end.
I misread the Revenue Canada guidelines for providing tax receipts for both our Fashion Show Tickets and for auction items and curated sale items at our Fashion Show. I sent out tax receipts that are incorrect.
So the short answer is: the tax receipts for the show tickets and the items successful bid on in our auctions or purchased at our show are not able to be used as tax receipts. I’m very sorry for my mistake and for any confusion this has caused, but I’m asking each of you to shred the tax receipts our charity provided for the tickets and auction or sale items.
The long answer is this:
*Tickets: I should have first deducted the costs of running the event from the ticket price then provided a tax receipt for the balance - which is under $20 and too small to qualify for a tax receipt.
**Auction Items: we did set a fair market value on all auction items but I should have deducted the fair market value from the value I issued the tax receipts for. But I did not. Again, in most cases, the amount deducted would be 80% of the total amount, leaving most tax receipts under the lowest amount. So most of these tax receipts are also unable to be used. I will reach out directly to each person I receipted to sort out what I am legally able to receipt - but ask you not to use them as they are.
Again friends, my huge apologies for this mistake. As we begin year 3 of running our charity I am more knowledgeable and will make sure I have all my ducks in a row before we launch our charity Fashion Show fundraiser next year.
Sincerely,
Ellie
Ellen Farrow
TenThirtyFive Grey/Bruce
Mobile: 519-379-0759
Mail: 340148 Stone School Rd,
Georgian Bluffs, ON, N0H2T0
(Revenue Canada Tax Receipt General guidelines for all fundraising events or activities
*To issue a receipt for a fundraising event or activity, you must first determine the value of the benefits provided to all participants. These benefits are considered an advantage and must be deducted from the amount of the gift before you can issue a receipt for the eligible amount . The method of calculating the eligible amount of a gift is called split receipting .
** Intention to make a gift" threshold - When the value of the advantage received is more than 80% of the value of the gift, it is generally considered that there is no true intention to make a gift; therefore, you cannot issue a receipt.. Receipting for items bought at an auction - The fair market value of the item must be established and made known to all bidders in advance of the auction, or you cannot issue a receipt. The winning bid must meet the intention to make a gift threshold (the posted value of the item cannot exceed 80% of the winning bid).
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