CRA and RE Receipting

Introduction

WHO AM I?

Joined non-profit world in 2007. Database analyst for a database of 1M constituents and

several million gifts. Joined Method Works in 2010.

Personally worked with 50 clients in RE, EE, FE, BBNC, OCC, Luminate, and/or Sphere.

Speaker at Blackbaud Conference for Non-Profits 2011, 2012, and 2013

Blackbaud Certified in The Raiser’s Edge. One of the first 5 “civilians” certified at the Professional

Level. Involved in discovery process for Blackbaud’s

“Bluebird.”

WHAT IS METHOD WORKS?

Fundraising systems consultants Specialize in Blackbaud suite of products. HQ is Calgary. Consultants in Vancouver and

Toronto as well. 70 years of combined experience in The Raiser’s

Edge. Total geeks.

OUTLINE

CRA Policy What should be on your

receipt? What should you know about

electronic receipting? What can be included on a

consolidated receipt?

Receipting in RE Differences between One-

Time Receipts and Consolidated Receipts.

Setting up records for consolidated receipting.

Reissuing and reprinting, in compliance with CRA.

CRA POLICY IS FUN!

When you're in Raiser's Edge training but would rather be dancing

Source: FundraiserGrrl

CRA Policy

DISCLAIMER

I am not a lawyer.

Anything presented herein is based on my work in the charitable industry, discussing issues with CRA, and discussions with lawyers, and believed to be correct and complete within that framework.

If you are unsure, ALWAYS ask CRA first.

OFFICIAL REGULATION

Income Tax Regulations, CRC, c 945

Part XXXV: Gifts

http://canlii.ca/t/524tc

ENSURE THAT YOU KNOW

There is a lot of content involved in tax receipting. We are only covering what we need to know for RE.

What is a gift? Who is a qualified donee? What are the recommendations for appraisals? Receipting for non-qualified investments. Etc. etc. etc.

FIRST AND MOST IMPORTANTLY

YOU DO NOT HAVE TO ISSUE A TAX RECEIPT

Does a registered charity have to issue official donation receipts for gifts it receives?

No. Receipting carries with it a certain administrative burden, and receipted donations increase a registered charity's spending obligation. Therefore, registered charities may choose to issue receipts according to certain criteria, or they may choose not to issue receipts at all.

Some registered charities set minimum donation thresholds for receipting. Others do not provide receipts during certain fundraising events.

Remember that donors cannot claim a charitable tax credit or deduction unless they are issued an official donation receipt. Therefore, registered charities are strongly advised to make potential donors aware of any circumstances in which a receipt will not be issued.

Source: http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/rqss-eng.html

WHEN SHOULD I RECEIPT?

You want to receipt so that your donors can claim the amount on their taxes.

CRA recommends by February 28 of the following year.

WHAT NEEDS TO BE ON A RECEIPT

Name and address (Canada) of organization

Charity registration # Place where receipt was

issued Date receipt was issued Name and website of CRA “Official Donation Receipt

For Income Tax Purposes” Receipt Number

Full name of donor, including middle initial*

Address of donor Amount of gift* Date when gift was received* Description and amount of

advantage Amount eligible for receipt Signature of authorized

person

*ASTERISK

Date when gift was received MAIL vs. ONLINE

Full name of donor, including middle initial Legislation says middle initial

Amount of gift Gifts in kind

CONSOLIDATED RECEIPTING

Receipt

Gift 1Gift 2

Gift 3

GIFTS IN KIND

CANNOT be consolidated. You must give ONE receipt PER item.

Date received (not simply year) Description of the property Name and address of appraiser (if appraised) Fair market value*

GIFTS… WITH BENEFITS

Raiser’s Edge calls them Benefits. In CRA-land, we call it “advantage amount.”

Raiser’s Edge DOES NOT consolidate these well.

Any time the donor receives something of value Fair market value must be determined on the

advantage Meals, Green Fees, Complimentary Items

CONTROLS

Serial receipts Raiser’s Edge does this with receipt stacks. Important accounting control

Signatures A receipt cannot be issued without an authorized

signature Can be electronic. Recommend another control.

ELECTRONIC RECEIPTING

You can receipt electronically and email a receipt. Protect the receipt as best as possible

Using a secure system such as The Raiser’s Edge to generate

Copies retained, stored on non-erasable media Encrypted and signed with a digital signature*

CPS-014

SPECIAL RULE: QUEBEC

If you are issuing to a resident in Quebec, issue a second receipt with the same serial number.

Numéro Un

Numéro Deux

RE-ISSUING A RECEIPT

Must still have all required information Include serial number of original (or, previous)

receipt Statement that it cancels and replaces original

(or, previous) receipt “Cancelled” on receipt on record.

STORING RECORDS

Must be kept for a minimum of two years from the end of the calendar year in which the donations were made.

Can be electronic! Readable, accessible Anything sent electronically (e-receipts) should be

stored electronically Same retention rules Non-erasable media, stored offsite is recommended

RESOURCES

Canada Revenue Agencywww.cra.gc.ca/charities

Mark Blumbergs’ Receipting Kit http://www.globalphilanthropy.ca

Receipting in RE

RECEIPT FUNCTIONALITY

RECEIPTING IN THE RAISER’S EDGE

Review how to receipt in The Raiser’s Edge Performing Consolidated Receipts Reprinting/Reissuing Receipts

Basics of Receipting

RECEIPT STACKS

Some charities do new receipt stacks per year

Some never change receipt stacks

Some have different receipt stacks for different gifts.

Configuration -> Tables

MAIL: RECEIPTS

MAIL: RECEIPTS

MAIL TABS

Filters, Attributes, Ind. Address, Org. Address, and Format are similar in other Mail Functions

Gift Types can be used to restrict Gifts in Kind eReceipts can be used to send email receipts

through The Raiser’s Edge

MAIL MERGES IN RE

Simple Mail Merge One Word template for all

receipts in that parameter file. Best for Consolidated

receipts. Any dynamic content to be

handled by IF-THEN-ELSE Conditions can be on multiple

fields

Conditional Mail Merge Multiple Word templates

based on different data. Does not work well for

Consolidated in most cases Need a template for each

value, or need to build a catch-all

RE Condition only works on one field

MAIL MERGES

Note: In order to send to the Word Merge Wizard, you must have a

gift that is receiptable.

IF-THEN-ELSE

Examples: Special messaging If values do not exist

{ IF Fund_description_1 = "ANNUAL" "Thank you for giving to our Annual Fund" "Thank you for your generous gift" }

RUNNING RECEIPTS

Year-End/Consolidated Receipts

WHEN CAN YOU CONSOLIDATE?

Cash Donations can be consolidated by year.

One-Time Receipts must be issued for Gifts in Kind.

One-Time Receipts should also be issued for gifts with advantage amounts due to how Raiser’s Edge works.

http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/whn-eng.html

RECEIPT TYPES

One Receipt Per Gift Multiple receipts Individual Gift Amounts Campaign, Appeal, Fund Benefit Information

Consolidated Receipts One Receipt per Run One gift total, calculated by

The Raiser’s Edge No gift-specific information

THE CONSTITUENT RECORD

RECEIPTING STEPS

If you don’t receipt throughout the year and you want to issue all receipts:

1. Deal with your GIKs and Benefit receipts first2. Perform Consolidated Receipts

THE PROBLEM

The fundamental issue: Raiser’s Edge will consolidate all receipts based on

parameters if the constituent is set to “Consolidated Receipts”

Raiser’s Edge will receipt one receipt per gift if the constituent is set to “One Receipt Per Gift”

GLOBAL CHANGES

YEARLY PROCEDURE

1. Set up your parameter file2. Run one receipt per GIK/Benefit gifts

1. Global changes, query of changed records2. Receipt3. Revert Records

3. Consolidate Cash Gifts1. Global Changes, query of changed records2. Receipt3. Revert Records

SET UP PARAMETER FILE(S)

Mail: Receipt One parameter file will work for BOTH One

Receipt Per Gift and Consolidated Any gift-specific fields will not be sent in the

Conditional; Think about how you lay out your content.

No specific Gift Date. Use the Year.

GIKS AND BENEFITS

We need to run our GIKs and Gifts with Benefits separately

All constituents should be marked as “One Receipt Per Gift” This might mean a global change.

GLOBAL CHANGE

Admin Global Change Constituent

Replace “Consolidated” with “One Receipt Per Gift”

Create Query of Changed Records

RUN RECEIPTS

Now we can run our receipts Once we are done, we revert:

Global Change using the Query we created when we ran the first time.

Run the opposite: Change “One Receipt Per Gift” to “Consolidated Receipts”

YEARLY PROCEDURE

1. Set up your parameter file2. Run one receipt per GIK/Benefit gifts

1. Global changes, query of changed records2. Receipt3. Revert Records

3. Consolidate Cash Gifts1. Global Changes, query of changed records2. Receipt3. Revert Records

LATHER, RINSE, REPEAT

Change all One Receipt Per Gift to Consolidated Run our receipts Revert as needed

ALTERNATE PROCEDURE

If you are more comfortable with Import, you can use Import to perform the same functions.

Exporting all constituent Import IDs and Receipt Types provides you with a backup.

NOTES

Always test first. Do not “Mark Receipted” on first run – verify that you are getting what you expect.

Ensure that you are only receipting for one year. Gift Date will not come through, so you will need to add the year into the receipt file (ideally in the parameter template)

If you only receipt once per year, it’s probably best to leave constituents as “Consolidated” and not worry about reverting.

Voiding and Reprinting

TWO WAYS TO REPRINT

Using Mail You need to create separate

parameter files for both reissue and reprint

Functionality issues with multiple receipt stacks

Can reprint large numbers of receipts at once.

On the Gift Record You can use the normal

receipt parameter files You can add specific notes on

the reprint Can only reprint one receipt

at a time, and does not work well for consolidated.

REPRINTING IN MAIL

Reissue Same receipt number

Reprint New receipt number

REPRINTING IN MAIL

Exactly the same as creating a receipt parameter file.

Easiest procedure is to copy/paste receipt merge from Word.

Note: Word copy/paste does NOT transfer margins and other page options.

ON THE GIFT RECORD

VOIDING RECEIPT NUMBERS

We recommend an additional process for listing Voided receipts.

Advantages: Easy to query/provide to auditors Can set to pull into any receipt parameter file

Consider attributes or notes

RECEIPTING IN THE RAISER’S EDGE

Review how to receipt in The Raiser’s Edge Performing Consolidated Receipts Reprinting/Reissuing Receipts

CRA and Raiser’s Edge Receipts

REVIEW

CRA Policy What should be on your

receipt? What should you know about

electronic receipting? What can be included on a

consolidated receipt?

Receipting in RE Differences between One-

Time Receipts and Consolidated Receipts.

Setting up records for consolidated receipting.

Reissuing and reprinting, in compliance with CRA.

RESOURCES FOR CRA

Canada Revenue Agencywww.cra.gc.ca/charities

Mark Blumbergs’ Receipting Kit http://www.globalphilanthropy.ca

VERSIONS

Screenshots are from: Windows 7 Professional The Raiser’s Edge 7 (Mostly 7.92 Patch 2) Microsoft Office 2013 64-Bit*

*Note: 64-bit Office is not supported by Blackbaud

CONTACT US

Kirk SchmidtDirector of Professional Services

800.278.4892 x705403.971.9905kirks@methodworksconsulting.com

www.methodworksconsulting.com