Canadian charities have a big problem: 89% of them have errors in their tax receipts! That’s not a typo—nearly 9 out of 10 charities make receipting mistakes that could shut them down.
The Problem is Bigger Than You Think
When the Canada Revenue Agency (CRA) audits charities, incorrect receipting is the #1 reason organizations lose their charitable status. It’s not just paperwork—it’s about survival.
Many charities simply don’t understand the complex CRA rules about when to issue receipts, what information to include, and what qualifies as a donation. One mistake can cost your organization everything.
Quick Solutions That Work
1. Know the Basic Rules
- Only receipt actual gifts (not payments for goods or services)
- Include all required information on every receipt
- Keep copies for at least two years
- When in doubt, don’t issue a receipt
2. Use CRA Resources
The CRA provides sample receipts and detailed guides. Use them. Download their “Gifts and Income Tax” guide and follow it exactly.
3. Train Your Team
Make sure everyone handling donations knows your policies. This includes staff, volunteers, and board members.
4. Use Technology to Stay Compliant
Manual receipting is where most mistakes happen. Modern software can automatically handle CRA compliance, reducing errors and saving time.
Pllenty Receipting for Salesforce is specifically designed for Canadian charities. It handles all the complex CRA requirements automatically, ensuring your receipts are always compliant. The system integrates directly with Salesforce, making it easy to manage donations and receipting in one place.
Don’t Become a Statistic
Tax receipting compliance isn’t optional. With 9 out of 10 charities making mistakes, the CRA is watching closely. Protect your organization by:
- Understanding the rules
- Using proper systems
- Getting professional guidance when needed
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