My brother got into woodworking when he retired and did craft shows for a while. It was something to do and he didn't need the money but eventually he got tired of working for 30 cents an hour. Then his wife decided he shouldn't be around power tools and that was that.
I also appeared that perhaps Canada is far more quick in revoking qualified status than would be typical for actual revocation to occur in US based on the comparative number of links found. IRS will do it in US, but likely will be quite some time based simply on filing the 990.
Q?. It appeared maybe there is an "official" charitable gifts contribution form that must be used, maybe? Or is it only that only a letter from the qualified organization would be recognized that was meant? I couldn't tell/decide what the various Canadian tax info sites meant, exactly, in that regards.
Is there an actual form like a US 1099-MISC or the like would be for reporting payments for independent contractor, say, but for the donor receipt?
In US, there is no form per se, only a prescription of what the receipt must acknowledge with some information being dependent upon the form of the gift.
"official tax reciepts" are issued by the charity and reported to revenue canada. A full record of charitable donation disbersments is also filed by the charity documenting how much is spent on what. A church has to fill in a very detailed "tax return" with details of every penny recieved and spent - and it's purpose.
I know of several retired people that like to do wood working and other hobbies that they sell at flea markets. They do not make very much at it, but it gives them something to do and pays for the materials.
Many years ago the CB radio was big. I was just starting out in learning electronic repair. I knew many of the CBers in town. Wound up repairing lots of them and just charged for the parts and a very low rate to repair them. As this was partly a hobby and training for me, I felt they were getting a good deal and while I did not make much per hour, good training for me. Never did get any complaints about the repair or the prices I charged. Made a few good friends doing it also. I was not married at the time,so had time to do it.
Really??? The charitable organization must report every donation by donor and amount they acknowledge to Revenue Canada??? Surely not.
My Q? was whether the the "official tax receipt" is an actual Revenue Canada form or whether it's just a letter/postcard/whatever to the donor that reports the required information.
There's no difference in the church T3010 than any other is there? It would be the equivalent of the US 990 and while it balances to income/expenses and assets/liabilities surely like the 990 it is reported only at the program level, not every single disbursement. Form
990 does require disclosing those donors whose annual total is over a given amount; I would also assume a similar cutoff exists there...ADDENDUM:
Just looked at the T3010 online. It answers the Q? above about there being differences--instructions note there is one and only one form now (altho apparently were multiple or at least more than one before).
It's a piece of cake as compared to the 990; only some 8-10 pages including instructions plus an extra schedule or two if a foundation. The US 990 contains something like 20 different schedules and the one for our foundation which is pretty small and uncomplicated as such go (consider a Yale or Harvard or Stanford) is a book of about 75 pages comprising some 15 schedules.
The T3010 only non-Canada donors over $10K were required to be listed and the level of detail on program spending considerably less than US as well. It is also a lot more nosy about _where_ funds are spent; there's comparatively very little concern on the 990 about overseas charitable missions or non-US. Here that was taken care of in whether or not the mission qualified in the determination letter or not, if the mission is for Timbukutu, so be it.
Only money I ever took was on a couple of large projects that were in the $100 to $300 range for wood. Labor was just for fun. Oh, no promises on when something would be done. Its a hobby, not a job.
On 3/9/2020 10:55 AM, dpb wrote: ...
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Well, a search on the RC website did uncover four sample receipts for use -- so isn't an actual official form exactly, but I'd guess almost everybody probably copies one of the examples to fit.
One interesting thing different in US -- the "for advantage" and "minimum intent" rule. As for the case that started this all off of the ticket to benefit with a meal -- the cost of the meal is the "advantage" to the donor and is subtracted the same idea.
BUT, if the meal/advantage is more than 80% for the Canada donor, then the "intent" rule is presumed to not be in effect and none of the contribution is deductible and the nonprofit is instructed to not provide a receipt for anything.
There's also a minimum of $75 or 10% of the donation that is considered a minimus advantage and doesn't have to be subtracted; the whole donation can be considered. The $50 contribution with a <$5 mug as prize would enable the full $50 be deductible. There isn't such a comparative minimus in US...
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