Membership fees
Summary policy
Date
September 3, 2003 (Revised June 7, 2016)
Reference number
CSP-M05
Key words
Membership fees
Policy statement
A qualified donee can issue an official donation receipt for the eligible amount of a payment for membership fees. To determine the eligible amount, the donee must determine the advantage received by the member in return for the payment.
Where the advantage is not more than $75 or 10% of the amount paid for the membership fees (whichever is less), a receipt can be issued for the full amount.
Where the advantage is more than $75 or 10%, the amount of the advantage must be deducted from the amount paid for the membership fees to determine the eligible amount of the receipt.
Example
For a membership fee of $100, the member receives a hat valued at $15 and a pen valued at $2.
Membership fee $100
Total value of advantages ($15 + $2) $17
Eligible amount ($100 - $17) $83
Since the total value of the advantages is more than 10% of the membership fee, the advantages must be deducted to determine the eligible amount. The donee can issue an official donation receipt for $83.
Note
Where the advantage is more than 80% of the amount paid for the membership fees, it is generally considered that there is no true intention to make a gift, and a receipt cannot be issued.