2019 FINANCE GUIDE - United Way Greater Toronto
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2019 FINANCE GUIDE
TABLE OF CONTENTS
MAKING A DONATION............................................................................................... 1
PAPER PLEDGE
Making a donation on a paper pledge form................................................... 1
2019 Pledge Form............................................................................................... 4
ONLINE PLEDGE
Making a donation through UnitedWay@work.............................................. 6
Donation summary and confirmation............................................................... 7
Entering paper pledge form donations in UnitedWay@work...................... 8
Entering designations......................................................................................... 9
Completing Leadership and survey questions................................................ 9
Making a donation via telephone.................................................................. 10
SUBMITTING DONATIONS.................................................................................. 11
Best practices for campaign envelopes........................................................ 11
United Way is committed to protecting your privacy................................ 17
SPECIAL EVENT LICENCES................................................................................ 18
CANADA REVENUE AGENCY— TAX RECEIPTING GUIDELINES .. 19
Gift-In-Kind Tax documentation..................................................................... 25
Gift-In-Kind Tax Receipt form......................................................................... 26
TAX BENEFITS............................................................................................................. 28
PAYROLL DEDUCTION INFORMATION........................................................ 29MAKING A DONATION
There are two ways you may receive employee donations
to your United Way campaign:
PAPER PLEDGE
Donors who choose to donate via paper pledge form will forward completed
forms to the ECC or Finance Coordinator.
ONLINE PLEDGE
Online donors access the system through a personalized link sent through
email. Donors enter their own donations online and the ECC or Finance
Coordinator can run reports to access this information.
PAPER PLEDGE
Making a donation on a paper pledge form
Section Contact Information
Name and home address—Required to process donations and receipts accurately.
Phone number(s)—Required for follow up with the donor regarding information
provided on the pledge form.
Email address—Required to provide a donor with an e-receipt and/or donor requested
communications.
Birth year—Optional, for aggregate demographic purposes.
I am retiring—Optional, so the donor can continue his/her relationship with United Way
after retirement.
2019 United Way Greater Toronto Finance Guide
1MAKING A DONATION
PAPER PLEDGE
Section Donation Information
Total Donation—The donor should indicate the total amount of their donation. If the donor
is making a donation by more than one method (i.e., payroll and cheque), the amounts in
the payment areas should add up to the total donation amount.
Payroll Deduction—The donor should indicate the amount per pay, the number of pay periods
and the total amount they wish to contribute through payroll deduction. The multiplication of
the amount per pay with the number of pay periods should equal the total payroll amount.
Payroll donors must complete and sign Section of the form and submit it to their payroll
department
Gifts of Securities/Share Options—Donors who wish to make their donation through a gift
of securities or share options (minimum $1,200), should contact United Way directly at
416-777-2001. The donor should tick the box and enter the approximate donation amount in
the total donation area.
Cheques—must be made payable to United Way or United Way Greater Toronto. The
cheques must be signed and the total amount of cheques should equal the donation
amount on the pledge form at the top of this section. As well, the cheques should be stapled
to the pledge form.
VISA/MasterCard/AMEX—The donor must include a valid credit card number, expiry date
and sign and date the pledge form at the X directly below. Donors may choose to make a
single payment or installments. If the donor does not specify a start date, United Way will
debit in January, April, July and October for quarterly payments and in January and July for
semi-annual payments.
IMPORTANT Donor Authorization—The donor must sign and date the pledge form to
verify that they have agreed to make this donation. Donors may keep a
photocopy of this form for their own records.
Section Recognition
Leadership donors should indicate whether they wish to be publicly recognized by United
Way and, if so, how they would like their name to appear. Leadership donors are recognized
using the levels indicated on the pledge form.
2019 United Way Greater Toronto Finance Guide
2MAKING A DONATION
PAPER PLEDGE
Back page of the pledge form
Completion of back page of the pledge form is optional
While most donors make a gift directly to United Way, where their gift will have the greatest
impact, some donors may select one of United Way’s other giving options.
United Way donors who wish to designate a portion of their gift to another registered
Canadian charity may do so. With the exception of designations to other United Ways or to
United Way service areas, a $16 processing fee and a $25 minimum amount applies to each
designation.
Donors should provide the charitable business number for any non-United Way charities to
which they are designating. Charitable business numbers can be obtained by visiting
unitedway.ca/cra or by calling 1-800-267-2384. If the donor is unable to obtain the charitable
business number, they should complete as much information as possible about the charity in the
name, address, city and province fields.
If a donor would like United Way to share their name, workplace and donation amount to the
charity or funded agency, they must indicate so by checking the tick-box marked “I permit
United Way to share my information (name, workplace, amount) with the organizations listed
directly above”. The donor’s personal information is subject to the charity’s own privacy policy.
2019 United Way Greater Toronto Finance Guide
3MAKING A DONATION
PAPER PLEDGE FORM - front page
2019 United Way Greater Toronto Finance Guide
4MAKING A DONATION
PAPER PLEDGE - back page
2019 United Way Greater Toronto Finance Guide
5MAKING A DONATION
ONLINE PLEDGE
Making a Donation Through UnitedWay@work
When the campaign is launched, a personalized link is sent directly to each employee
through the UnitedWay@work tool.
Clicking on this link takes the employee to a secure donation website.
Logging in—If an employee selects Donate, they will be taken to a screen that will display
their name and login ID. The employee will be asked to create a password. This password
will be required each time they access the site. Once they have created their password and
click on 'Continue', the employee will enter their donation information.
Payment Types—The donor selects a payment type. If a donor wishes to use more than one
payment type, they need to complete separate online transactions for each type.
Payroll—After a donor has entered the total donation amount or amount per pay and
selected the payroll payment method, the number of pay periods are automatically displayed
based on information supplied in your employee datafile. Payroll donations will be receipted
on a donor’s T4 slip.
Cheque—All cheques must be made payable to United Way or United Way Greater Toronto.
Credit card—For security purposes donors will be required to provide their credit card type,
card number and expiry date.
Gift of Securities—Donors will be prompted to complete an online form with instructions
to send back to a United Way representative who will facilitate the donation process.
Additional giving options
While most donors give a gift directly to United Way, where their gift will have the greatest
impact, some donors may select one of United Way’s other giving options.
United Way donors who wish to designate a portion of their gift to another registered
Canadian charity may do so. With the exception of designations to other United Ways or to
United Way service areas, a $16 processing fee and a $25 minimum amount applies to each
designation.
2019 United Way Greater Toronto Finance Guide
6MAKING A DONATION
ONLINE PLEDGE
Donation Summary and Confirmation
The donor’s personal information is used primarily for receipting purposes and to ensure that
their donation will be correctly processed. See Privacy Statement on page 17 for other uses of
this information.
Donors can receive information by email on United Way’s work in the community, events,
programs for donors, and/or charitable bequests. If the donor wishes to take advantage of
this option or is retiring and would like to be contacted in the near future, the tick-box should be
checked and the donor must provide their personal email address.
The last section displays the donor’s donation information including amount, payment type,
and designations. The donor may click Edit to return to the donation screen.
If the donor makes a Leadership gift they must indicate whether they wish to be publicly
recognized by United Way or if they prefer to remain anonymous. Their chosen recognition
name should be typed here.
If credit card is the selected payment method, the donor will be required to fill in credit card
type, card number and expiry date on the donation page.
The donor should carefully review all items on this page and edit if necessary. If they are
satisfied that all information is correct, they click Submit. to confirm and complete their
donation.
Donors will receive a Thank You email.
Once the Thank You screen appears, the donation has been recorded and the donor may
close their browser.
2019 United Way Greater Toronto Finance Guide
7MAKING A DONATION
ONLINE PLEDGE
Entering Paper Pledge Form Donations in
UnitedWay@work
Some donors may not have online access or simply may not wish to make their donation
online and you will need to data-enter their paper pledge. Log in to UnitedWay@work
through your Workplace Administrator link and follow these steps:
Step 1—Select employee
From the Campaign Management tab choose Employee Management followed by Select
Employee from the left-hand menu.
Enter the employee ID number, first name or last name of the donor whose paper pledge
you want to enter and select Search. This will take you to a list of your organization’s employees.
Click the employee’s name and verify their information in Employee Details to confirm you
have accessed the correct record.
TIP Check the employee’s donation to confirm that this is a new donation and not the
payment for a donation the donor has already entered online. If there is any doubt,
contact the employee to double check their intention. If they already gave online,
detach the payment from the paper pledge form and shred the paper pledge form to
avoid duplication.
Step 2—Enter all paper pledge form information
Select Data Entry from the left side (under the employee’s name) to access the input screens.
Enter total donation amount, payment method, number of installments (where applicable),
and start date (where applicable). For Cheque, Credit Card or Bill Me options, you are
required to key in the donor’s home address information so United Way can provide a
receipt to the donor. If this information is not provided, contact the donor to obtain it.
2019 United Way Greater Toronto Finance Guide
8MAKING A DONATION
ONLINE PLEDGE
Enter Designations
Check the back of the paper pledge form to see if the donor has made designation(s) and
record designation requests. For other United Ways or registered Canadian charities, you will be
linked to a search screen. Type in the name, city, or registered charitable number indicated on
the back of the employee’s paper pledge form and click Search.
From the names of registered charities displayed, select the one that matches the donor’s
designation. The donor is required to select one of two options with respect to release
name to charity. The donation cannot be saved if a selection is not made.
If the charity being sought is not displayed, scroll to the bottom of the page, and enter
shortened search criteria. If the expected results are still not displayed, enter the full name,
city, province and postal code of the registered charity. Enter the designation amount and
indicate if the donor wishes to release their name to their recipient charity.
Completing Leadership and survey questions
If this is a Leadership donation, record the employee’s choice of whether or not they wish to
be recognized for their donation. If they wish to be recognized, record their name as
indicated in the space provided.
Record all requests for information in the communications area of the paper pledge form in
the optional information section. Fill in the donor’s retirement information if indicated on the
card. Check that the contact information is included (e.g., personal email).
Verify that all information has been correctly entered and submit the pledge.
For all paper pledge forms with cheques attached, click the Payment Received check box
at the bottom of the screen. The Workplace Received Checklist will be automatically updated
when this data is submitted.
2019 United Way Greater Toronto Finance Guide
9MAKING A DONATION
PAPER PLEDGE
Step 3—Submit donation
Click Submit to complete the transaction.
As with donor-entered donations, only one payment type per transaction is permitted. You
will have to enter and submit each different payment separately.
Repeat the process for every paper pledge form you receive as they are submitted. Entering
all paper pledges using data entry simplifies payment submission and provides more accurate
and up-to-date campaign reporting. Any donations submitted through data-entry will be
added to your reports, campaign dashboard results and thermometers.
Remember to save the paper pledge forms after they are data-entered and do not detach
cheques from them as they will be required for envelope submission. Please refer to section 2 on
envelope submission for further details.
Making a donation via telephone
For donors who want to make their donation via telephone, redirect them to United Way’s
Help Line. The United Way Help Line's phone number is located on the Campaign Dash-
board in the United Way contacts area and footer of all donor pages, or alternatively email
us at assistance@uwgt.org and we can help facilitate your gift.
2019 United Way Greater Toronto Finance Guide
10SUBMITTING DONATIONS
PAPER PLEDGE ONLINE PLEDGE
All funds must be submitted to United Way in campaign envelopes. There are three types of
envelopes:
Green campaign envelopes—for employee paper pledge form donations.
Note: Not used in UnitedWay@work campaigns.
Red special events envelopes—for funds raised through special events.
Blue UnitedWay@work campaign envelopes—for employee paper pledge form
donations in campaigns where UnitedWay@work is being utilized.
Best Practices for Campaign Envelopes
United Way has an excellent reputation for its careful handling of donor dollars. By following
the best practices listed below, you will help United Way maintain this record:
• Balancing the campaign envelope should always be done in pairs. If another person
from your workplace is not available, please ask your United Way partner to balance the
envelope with you.
• Submit campaign envelopes on a regular basis (weekly or bi-weekly). Please do not wait
until the end of your campaign to submit.
• Keep all completed paper pledge forms and payments in a secure place until they are
submitted to United Way and ensure that cheque and cash payments remain affixed to
individual pledge forms.
• Open a bank account in United Way's name, deposit cash collected and forward a
cheque to us, or forward the money by electronic funds transfer. Contact United Way's
Accounts Receivable Administrator at 416-777-2001 ext. 283 to assist you in setting this
up. If these methods are not an option, in an effort to avoid security risks please convert
cash to a money order.
• Do not send campaign envelopes through the mail! Deliver your campaign envelopes
personally or use your organization's courier. Send to either of the locations indicated on the
front of the campaign envelope. This is due to the fact that United Way Greater Toronto has
discontinued its envelope pick up service.
• The person picking up the envelope and delivering it to United Way should add their
name and initials to the campaign envelope. The completed envelope should be photo-
copied and kept for your records.
• United Way Greater Toronto is committed to providing a safe and healthy work environ-
ment for staff and Sponsored Employees (SE) and will work with you to maximize their
safety.
2019 United Way Greater Toronto Finance Guide
11SUBMITTING DONATIONS
PAPER PLEDGE
Preparing Green Campaign Envelopes
Note: Green envelopes should only be used for paper campaigns.
Before you begin, check to make sure that each pledge form has been signed and that the
donation information on the pledge form matches the cash or cheque submitted with it.
Ensure that all cheques are made payable to United Way or United Way Greater Toronto,
that the cheques are signed and that the body and numbers match. Only original pledge
forms should be submitted.
Sort pledge forms
There are some situations that require separate envelopes to be prepared. These situations
are outlined below:
• Separate locations: If a location I.D. number has been pre-printed at the top right corner
in Section of the pledge forms, separate the pledge forms by location I.D. and prepare a
separate envelope for each location.
• Leadership donations: Within each location, separate all pledge forms into groups of
$1,199.99 and under and $1,200 and over. Please select the Yes checkbox on the
envelope to indicate that it contains Leadership donations.
Each location may require two envelopes, one for donations under $1,200 and one for
Leadership donations.
Separate payment types
For each group, sort pledge forms into bundles according to payment type. Payment type
choices are: Cheque; Credit Card; Payroll; Gift of Securities.
For payroll donations, verify that payroll donors have completed and signed Sectionand
of the pledge form, detach Section of the pledge form at the perforated line and forward
Section to your payroll department.
For all other payment types detach Section and shred it. Send the remainder to United Way.
Gift of Securities
If this is the only item the donor has selected on their pledge form, include it in a green campaign
envelope. If the donor has selected additional payment types on their pledge form, make a
copy of the form and bundle the copy with the Gifts of Securities pledge forms. The original
should be included with the pledge forms of the other payment type.
Do not include the Gift of Securities amounts in the Employee Contributions section on the
front of the envelope. The amounts shown are only estimates, as the final value will not be
known until the trade is completed.
In the Notes section of the front of the envelope, indicate that a Gift of Securities is enclosed.
2019 United Way Greater Toronto Finance Guide
12SUBMITTING DONATIONS
PAPER PLEDGE
Complete envelopes
Bundle the pledge forms for each payment type together and tally up the total donation
amount for each type. On the front of the envelope, indicate the totals for each payment
type onto the appropriate line on the envelope face. Insert the pledge forms for each payment
type into the envelope, seal the envelope and contact your United Way partner to make
arrangements for pick-up.
Detach cash from the pledge forms, deposit cash to your United Way bank account, write a
cheque for the total deposited and affix the cheque to the bundle of pledge forms. Add the
cash pledge forms covered by this new cheque to the cheque bundle (i.e., no cash amount
will be recorded on the front of your envelope).
Submit completed envelopes to United Way
Affix the label supplied by United Way with the correct address and location number to the
front of the envelope. If a label is not available, please print the information in the appropriate
area.
Print the names and business phone numbers of the two individuals who prepared the enve-
lope in the Envelope Prepared By section. Both individuals should initial at the far right.
Have your United Way partner print their name and initial the envelope when it is picked up, then:
• Make a photocopy of the initialed envelope and keep for your records.
• Submit the envelope to your United Way partner.
Separate payment types
The remaining bundle may consist of:
• Paper pledge forms with cheque payments, (staple cheque to form to prevent loss).
• Paper pledge forms for credit card donors.
• Cheque payment(s) from online donors (no paper pledge forms attached).
Credit Card Payments—For donors who have submitted a paper pledge form, they must
include the credit card number and expiry date and sign the paper pledge form. One time
current credit card donations will be processed online as soon as you click the submit button.
If a donor has submitted a cash payment, please do not forward the cash. Convert it to
cheque or money order prior to forwarding to United Way.
2019 United Way Greater Toronto Finance Guide
13SUBMITTING DONATIONS
ONLINE PLEDGE
Preparing Blue UnitedWay@work Campaign Envelopes
Please complete data entry of all paper pledge forms (see page 8) before submission.
Note: Blue envelopes should only be used in UnitedWay@work campaigns.
Sort pledge forms
Sort all payments from online donors and paper pledge forms into two bundles:
• Cheque(s) and Credit Card.
• Other (i.e., payroll).
Count the number of other (payroll and bill me) paper pledge forms, record the number of
paper pledge forms on the front of the envelope and insert them into an UnitedWay@work
envelope. These paper pledge forms will be used by United Way to verify donation amounts
and for reconciliation purposes.
Separate payment types
The remaining bundle may consist of:
• Paper pledge forms with cheque payments, (staple cheque to form to prevent loss).
• Paper pledge forms for credit card donors.
• Cheque payment(s) from online donors (no paper pledge forms attached).
Credit Card Payments—For donors who have submitted a paper pledge form, they must
include the credit card number and expiry date and sign the paper pledge form. One time
current credit card donations will be processed online as soon as you click the submit button.
If a donor has submitted a cash payment, please do not forward the cash. Convert it to
cheque or money order prior to forwarding to United Way.
2019 United Way Greater Toronto Finance Guide
14SUBMITTING DONATIONS
ONLINE PLEDGE
Record on-line cheque payments
If you clicked the Payment Received check box during data entry of all cheque donations
you are not required to complete this step for the data entered cheque donations. You
must, however, complete it for the cheque payment from online donations.
Go to the Campaign Management tab, click on General Setup, scroll to the bottom and
select Workplace Received Checklist. Select either Unsent Transactions at the bottom of
the screen or search by any of the fields displayed. When you have located the employee
whose donation information you are seeking, verify the payment against the donation
amount. Click on Received if all is in order for this donation and Submit.
Repeat this process for all remaining items.
Print follow-up report
After all cheques items have been verified and entered in the Checklist, go to the Reports
tab and select the Follow-up Report. Once the report has loaded in pop-up window, select
the Export Drop Down Menu icon, and click on Excel, to save it as an .xls file. You will
need to filter this report to produce a list of just the cheques included in the current enve-
lope. Print the resulting report and include in your envelope after transferring the totals to
the face of the envelope.
TIP Depending on your operating system, you may need to turn off your pop-up blocker
in order to access reports from UnitedWay@work.
2019 United Way Greater Toronto Finance Guide
15SUBMITTING DONATIONS
PAPER PLEDGE ONLINE PLEDGE
Preparing red special event envelopes
Special event envelopes should be used to submit funds raised for:
• Community special events, such as the #UP4Community (CN Tower Climb) and
Scotiabank Rat Race for United Way.,
• Workplace special events, such as bake sales, auctions, etc.
Note: Tax receipting rules between community special event donations and workplace
special event donations may be different, so please submit each type in a separate envelope.
Do not data enter special event donations into the UnitedWay@work tool as this may
contravene CRA regulations.
For community special events
• Tick the type of special event on the front of the envelope.
• Record the names of the participants and the amount collected on the back of the
envelope.
• Record the total funds raised in the space provided on the front (Total Enclosed).
• Keep the cheques and cash affixed to each pledge form.
Note: Do not submit community special event pledge forms without collected funds.
For workplace special events
Several events can be combined into one envelope, however, a separate workplace special
event envelope should be prepared for each location.
• Tick the Workplace Events item at the top of the envelope.
• Total each payment type, separate, and indicate amounts on the front of the envelope.
• Convert cash of $100 or more into a single cheque or money order for security purposes.
2019 United Way Greater Toronto Finance Guide
16SUBMITTING DONATIONS
PAPER PLEDGE ONLINE PLEDGE
Credit card donations cannot be processed by United Way without the cardholder’s name,
address and signature. Please contact United Way to obtain a special event donation form
or POS machine prior to holding your event.
Note: If you have a list of donors who have requested tax receipts for receiptable special
event dollars, include the list in the campaign envelope. Please ensure the list includes
name, home address, personal email and donation amount.
If you have Gift-in-Kind Tax Receipt request forms, they must be submitted with the funds
raised from their use.
Caution: Please read the CRA regulations on tax receipting on pages 19-25 thoroughly
before promising tax receipts to donors. Please consult with your United Way partner if you
require further clarification.
United Way is Committed to Protecting Privacy
United Way Greater Toronto follows the information principles in the Canadian Standards
Association Model Code for the Protection of Personal Information (CSA). Personal informa-
tion is used only for United Way’s and an organization’s campaign; to administer a donation
and contact donors about renewal; to respond to information requests; to know who our
donors are; to periodically, as we are able, send literature on United Way or invite donors to
recognition events and information sessions; and to thank and recognize gifts. To see our
complete privacy policy, visit unitedwaygt.org
2019 United Way Greater Toronto Finance Guide
17SPECIAL EVENT LICENCES
Applications for lottery events licenced by the Alcohol and Gaming Commission of
Ontario (AGCO) must be submitted at least 30 days prior to the date of the event and 45
days prior for organizations applying for the first time. Please note United Way Greater
Toronto is unable to facilitate this process and does not have any influence over the length
of time required to issue a licence.
Important
• The AGCO requires a report to be submitted by your organization, within 30 days after
the completion of the fundraising event.
• Lottery licences are required to deposit proceeds derived from lottery events into a
separate account designated as a trust account by the financial institution in which it is
held.
Types of special events that require licences:
• Raffle—Note, AGCO has advised that a licence number must appear on the tickets.
• Bingo
• Special Occasion Permit— Required any time liquor is sold or served anywhere other
than in a licenced establishment or a private residence.
• Social Gaming—Event where no more than a total of 20 blackjack and/or wheel of for-
tune tables are operated.
• Break Open Ticket—Ticket with perforated cover window tabs, with winning or losing
numbers/symbols behind.
Upon your request, an email will be sent to you from United Way Greater Toronto,
which includes the following:
• A letter of agreement between your organization and United Way Greater Toronto to be
completed and signed by your organization.
Any queries or requests for additional information should be directed to the AGCO at
416-326-8700 or agco.on.ca
2019 United Way Greater Toronto Finance Guide
18CANADA REVENUE AGENCY TAX RECEIPTING GUIDELINES
Index
1.1 Tax receipting summary............................................................................................. 19
1.1.1 What is receiptable.............................................................................................. 20
1.2 Introduction........................................................................................................ 20
1.2.1 Definition of a gift/donation............................................................................... 20
1.2.2 Nominal consideration rule................................................................................. 21
1.2.3 Donations with an advantage to the donor....................................................... 21
1.3 Employee pledge receipts................................................................................. 21
1.4 Workplace special events................................................................................... 21
1.4.1 Requesting a receipt for a special event............................................................ 22
1.4.2 Casual day donation ........................................................................................... 22
1.4.3 Individual sponsorship donation........................................................................ 22
1.4.4 Auctions ............................................................................................................... 22
1.4.5 Lotteries/raffles .................................................................................................... 22
1.4.6 Activities not permitted....................................................................................... 22
1.5 Gift-in-Kind donations from individuals and businesses................................... 23
1.1 Tax receipting summary
Always check to ensure a donation is receiptable under Canada Revenue Agency tax
receipting guidelines before promising a tax receipt to a donor. This applies to any
donation—lottery tickets, goods for an auction, casual day donations, etc. One of the most
unpleasant tasks a volunteer can face is telling a donor they will not be receiving a tax
receipt.
There are detailed tax receipting guidelines on the following pages. We strongly encourage you
to read this section. If you still have questions after reading this section, consult with your
United Way partner.
Please remember, these are Canada Revenue Agency tax guidelines. United Way must follow
them to retain our charitable status. There can be no exceptions.
2019 United Way Greater Toronto Finance Guide
19CANADA REVENUE AGENCY TAX RECEIPTING GUIDELINES
1.1.1 What is receiptable
Receiptable Partially receiptable Not receiptable
Payroll deductions Donation portion of a Donations of business
(receiptable amount will meal or event where the services.
appear on your T4 slip), di- admission includes a
rect cash, cheque and credit donation. Donations of personal
card donations of $25 or services.
more, where the value of the Some auction items (bid-
der). See section 1.4.4 for Corporate event sponsors
benefit is of no or nominal who receive more than minor
value. regulations.
recognition or promotional
Sponsorship donations Donations where the value.
of $25 or more for events donor received an advantage
such as #UP4Community (CN (financial benefit that is more No part of the cost of a
than a nominal amount). lottery ticket.
Tower Climb) bowl-a-thons,
etc. Non-voluntary
contributions.
Donations of physical
goods and merchandise Donations of art or
over $100 by individuals and jewellery.
businesses (excluding art,
jewellery and items listed in Donation of personal
section 1.4.6). vacation properties.
1.2 Introduction
1.2.1 Definition of a gift/donation
A gift, as defined by Canada Revenue Agency (CRA), is a voluntary transfer of property
without valuable consideration. Generally, a gift is made if all three of the conditions listed
below are satisfied:
q Some property (usually cash) is transferred by a donor to a registered charity.
q The transfer is voluntary.
q No benefit of any kind may be provided to the donor, except where the benefit is nominal.
1.2.2 Nominal consideration rule
A donation receipt can be issued at full value if the advantage/value received by the donor
does not exceed the lesser of 10 percent of the gift or $75.
2019 United Way Greater Toronto Finance Guide
20CANADA REVENUE AGENCY TAX RECEIPTING GUIDELINES
1.2.3 Donations with an advantage to the donor
When a donor makes a gift and receives a benefit beyond the amount defined by the nominal
consideration rule (see section 1.2.2), the amount of the advantage must be deducted from
the gift amount in calculating the amount of the tax receipt. In addition, the amount of the
advantage must be clearly identified and its value ascertainable and cannot be more than
80 percent of the gift amount.
1.3 Employee pledge receipts
• Payroll donations will be receipted on a donor’s T4 slip.
• Direct cash, cheque and credit card donations ($25 or more) are receiptable for the tax
year in which they are received.
One-time credit card donations will be e-receipted:
Online: To the donor's preferred email address within one day of donation (no minimum
donation).
Paper: At year end to the donor's preferred email address.
One-time cheque donations will be e-receipted:
Online: To the donor's preferred email address within five days of receipt at United Way
offices (no minimum donation).
Paper: At year end to the donor's preferred email address.
• Donors using UnitedWay@work should contact their ECC to verify that their donation
was properly processed and forwarded to United Way if no e-receipt has been received
after two weeks.
• Donors making multiple or post-dated payment will receive an electronic tax receipt
from United Way sent to their preferred email address at year-end.
• A Gift of Securities donation will receive an electronic tax receipt upon settlement of the
shares and securities.
1.4 Workplace special events
1.4.1 Requesting a receipt for a special event
Special event donations must adhere to strict guidelines in order to be receiptable. If you
are still unsure whether a receipt can be issued after reviewing these guidelines, please contact
United Way for clarification.
Income tax receipts for funds collected through a special event must be requested at the
time the funds are submitted to United Way. The total tax receipt amount requested cannot
exceed the amount remitted. With your envelope, submit the following:
• Cheque
• List of individuals that will be receiving an tax receipt. Include their complete mailing and
personal email addresses.
2019 United Way Greater Toronto Finance Guide
21CANADA REVENUE AGENCY TAX RECEIPTING GUIDELINES
1.4.2 Casual day donation
The value of the benefit received by participants of casual days is nominal. A tax receipt can
be issued if the amount is $25 or more, e.g., if you are charging $2.50 per day to dress
casually, sell the donor 10 casual days ($25 value).
1.4.3 Individual sponsorship donation
The pledging and/or sponsoring of participants in the Scotiabank Rat Race for United Way
and #UP4Community (CN Tower Climb) are receipted under the same guidelines as cash and
cheque donations. The rule also applies for organization-run sponsorship events like Hockey
Tournaments, walk-a-thons or any other similar event.
1.4.4 Auctions
Bidder—The successful bidder on auction items generally does NOT receive a tax receipt
as they are receiving the item in return for the bid amount. However, where the value of an
item is clearly ascertainable and made known to all bidders in advance and the successful
bid is more than 125 percent greater than the posted fair market value, then the amount in
excess of 125 percent of the fair market value would be receipted
When requesting tax receipts for auction bids—The United Way volunteer must include
copies of the bidding form and the document that supports the fair market value. A letter
from the supplier, sales receipt or listing in a catalogue would be appropriate documentation.
1.4.5 Lotteries/raffles
No part of the cost of a lottery ticket is receiptable.
1.4.6 Activities not permitted
Auctioning off tax receipts
Special event proceeds cannot be raffled off with (or without) the intention of the winnings
being donated back to United Way by the winner. The donation, in this case, would not be
voluntary and therefore would not qualify as a receiptable gift.
Donation of personal vacation properties
CRA has ruled that the temporary transfer of personal property does not constitute a gift
and is therefore not receiptable.
Donation of services
Workplaces can receive the donation of a service from an individual or business. These
services are not receiptable.
2019 United Way Greater Toronto Finance Guide
22CANADA REVENUE AGENCY TAX RECEIPTING GUIDELINES
1.5 Gift-in-Kind donations from individuals and businesses
Donations of physical goods for use in an organization’s employee workplace campaign are
receiptable. The receipt issued is referred to as a Gift-in-Kind tax receipt and is different
from the tax receipt issued for cash donations.
Prior to accepting a product (Gift-in-Kind) please inform the donor of the following:
• Gift-in-Kind receipts are only issued for items at $100 or more.
• Gift-in-Kind receipts for $1,000 or more require an approval from United Way for a
receipt. Additional support may be requested by United Way to establish the value of
the gift.
• Adequate documentation (i.e., sales receipt) is required to establish the value for the
donated product.
• Taxes paid (i.e., HST) is not considered part of the value of the product and will not be
included in the value of the receipt.
• It is the donor’s responsibility to provide adequate support to determine the “fair market
value”.
• Services are not receiptable.
1.5.1 How to request a Gift-in-Kind tax receipt
Complete the Gift-in-Kind Tax Receipt Request Form on page 26-27 to ensure your
donors receive their Gift-in-Kind tax receipt in a timely manner. Please ensure section 1 and
2 are completed. Due to CRA regulations, a tax receipt will not be issued if one of these
sections is incomplete or does not have the appropriate signature.
SECTION 1—Gift Verification (To be completed by United Way Volunteer)
Detailed description of donated item.
Fair Market value and documentation supporting the amount, i.e., appraisal, catalogue,
written opinion of independent third party or the United Way volunteer. The opinion of
the donor is not an acceptable basis for valuation.
Date the item was donated.
SECTION 2—Donor Declaration (To be completed by donor)
The donor must complete and sign the donor declaration.
PLEASE NOTE
CRA stipulates that all Registered Canadian Charities must issue tax receipts no later than
February 28 for receiptable donations received in the preceding year. Please submit all Gift-
in-Kind tax receipts forms prior to February 11, 2020 for items eligible for a 2019 tax receipt
to allow United Way Greater Toronto to produce the tax receipt by the required deadline.
2019 United Way Greater Toronto Finance Guide
23CANADA REVENUE AGENCY TAX RECEIPTING GUIDELINES
1.5.2 Gift-in-Kind items
Appraisals and fair market value
Appraisals should be for the current resale value, not the replacement value of the donated
item. The appraised amount should be equal to the price that the property would obtain
in an open market between a willing buyer and a willing seller who are both knowledgeable,
informed and prudent and who are acting independently of each other.
The fair market value of an item does not include taxes paid on purchasing the item. Taxes
are a cost incurred by the purchaser and are payable to the Crown. The amount entered on
the official donation receipt should be the fair market value of the item before taxes.
Donations from inventory
An organization may donate inventory items as a Gift-in-Kind. Fair market value for these
products is based on the price available in the open marketplace. Once fair market value is
determined, the organization would submit an invoice (excluding taxes) for the Gift-in-Kind.
Gift certificates
A person who buys a gift certificate and donates it to a charity may receive a tax receipt for
the fair market value of the certificate.
Crafts, hobbies and handmade items
It is difficult to establish the fair market value of these items. Find a comparable item for sale
in a store or catalogue and use it as the basis for establishing the fair market value.
Used items
A donated item that is more than one year old or is not in perfect condition is generally not
receiptable as its value is subjective. Used clothing can never be receipted. In the event it
is necessary to receipt a previously enjoyed item, the receiptable amount should be deter-
mined by depreciating the original price by 20 percent per year on a declining balance basis.
As in all other cases, the original price and the age will need to be documented as well as the
calculation of the receiptable amount.
Paintings, prints, art objects and jewellery
Gift-in-Kind donation receipts are not issued for any of these items due to the difficulty in
authenticating the fair market value.
Air Miles and other point programs
United Way Greater Toronto does not accept Air Miles and other point programs as Gift-in-
Kind. The donor is advised to redeem these points into cash/trip/item for which the fair market
value can be determined. It is the fair market value that determines the amount to be placed
on the donation receipts.
Please note
Services cannot be receipted.
The fair market value does not include the taxes.
Gift certificates for services cannot be receipted (e.g. hotel accommodation).
2019 United Way Greater Toronto Finance Guide
24CANADA REVENUE AGENCY TAX RECEIPTING GUIDELINES
1.5.3 Gift-in-Kind documentation
• Fair market value documentation for items under $1,000: sales receipt, price printed
on item (i.e., tickets), comparable item found on a website (i.e., eBay), appraisal by an
independent third party (United Way volunteer).
• All items of $1,000 or more must be accompanied by an appraisal (see section 1.5.2).
• Multiples of the same item on one form (i.e., 3 x $40/ea. tickets).
• Incomplete documentation will be returned for correction.
Most common reasons for a delay in receiving a Gift-in-Kind tax receipt
• Unsigned form by United Way volunteer.
• Unsigned Donor Declaration.
• Gift-in-Kind Tax Receipt Form amount does not match the back-up documentation
attached.
• The Gift-in-Kind Tax Receipt Request Form does not have acceptable supporting
documentation.
• Documentation provided does not clearly state the fair market value.
• Date of the documentation provided is more than a year old.
• Different types of items on one form (i.e., 1 x $40/ea., sweatshirt + 1 x $35/ea., gift
certificate + 1 x $80/ea., ticket).
Reasons why an income tax receipt is not issued
• Tax receipt requested is for services.
• Tax receipt is for jewellery, vacation property or art.
• Other items stated in the guide as non-receiptable items.
• The value of the Gift-in-Kind tax receipt being requested is less than $100.
2019 United Way Greater Toronto Finance Guide
25Gift-in-Kind Tax Receipt Form Please complete and sign both pages to process your tax receipt. SECTION 1—To be completed by United Way Volunteer Organization Name: Employee Campaign Chair (name): Tel: Donor Name: Donation Date: Description of donated item* (one item per form): Fair market value (minimum $100) $ Taxes are excluded. Please check off how fair market value has been validated( please provide documentation): Written appraisal (name and address of appraiser required) Sales receipt Posted on gift (i.e., event tickets) Advertised price of same or comparable item in catalogue/newspaper/flyer Current bid on same or similar item on eBay ECC appraisal (if item is valued at less than $1,000 and the ECC is familiar with the type of property in question—complete box below) I am an employee of the above mentioned organization and a volunteer for our workplace's United Way Greater Toronto (UWGT) campaign, whose purpose it is to raise funds for UWGT. In this capacity, I have received the above donation from the individual/business listed above. I confirm that: 1. All necessary steps have been taken to ensure the value is accurate. 2. The donated item was used in raising funds for UWGT. Employee Campaign Chair appraisal for items less than $1,000 My signature below confirms that I have reviewed the above listed item and believe I am familiar enough with this type of item to reasonably estimate its fair market value. Signature: Date: *Services are not receiptable
SECTION 2—To be completed by donor
To receive a receipt, please answer question A and B
A Please check off box that reflects the donated item.
It was acquired this year
It was acquired in the last three years
It was acquired in the last ten years with the intent to donate to charity
It was received in the last ten years from a family member or other non arm’s length person
$ item?
What was the original cost of this
In each of the cases above, the tax receipt amount will be the lower of the donor’s cost and the fair market
value.
B Is this donation being made under a Donation Tax Shelter Gifting arrangement or Limited Recourse
Debt scenario? Yes No If yes, these gifts will not be receipted.
Donor Declaration
My signature below confirms that the information I have provided on this form is true and accurate. I hereby
authorize United Way Greater Toronto to use this information in determining the value of the tax receipt I receive
and to share this information with CRA.
Donor Name (please print): Donor Signature:
Address:
Street City Province Postal Code
Please forward all Gift-in-Kind requests to:
Gift-in-Kind Administrator, United Way Greater Toronto
26 Wellington St. E. 12th Fl. Toronto ON, M5E 1S2
If you have any questions, please call your United Way partner at 416-777-1444.
To be completed by United Way Greater Toronto
United Way Toronto Greater approve the income tax receipt amount of: $
1. All necessary steps have been taken to ensure the value is accurate.
2. The donated item was used in raising funds for UWGT.
Signature:
Position:
Date:
United Way Greater Toronto 26 Wellington Street E 12th Floor Toronto ON M5E 1S2
Tel 416 777 2001 Fax 416 777 0962 TTY 866 620 2993 unitedwaygt.orgTAX BENEFITS
Tax benefits make giving to United Way even more attractive.
An individual who makes a gift to United Gift amount* Total tax Actual cost
Way receives a federal tax credit against savings to you
income taxes. The annual federal tax
$100 $20 $80
credit is equal to 15 percent of the first
$200 donated by an individual and $200 $40 $160
29 percent of the amount exceeding $500 $160 $340
$200.
$1,000 $361 $639
$5,000 $1,968 $3,032
* Taxable income less than $202,800
Donating publicly traded securities
The Capital Gains Tax was removed from publicly traded shares that have been donated.
This means that the donor receives a tax receipt for the full value of the shares but is not
taxed on any gain. A minimum of $1,200 of the total gift must remain with United Way
Greater Toronto, United Way service area or other United Way in Canada.
The benefits are clear...
If you sell a security, you pay tax on Example: Tax benefit of donating publicly
50 percent of the capital gain. However, traded gifts of securities to United Way
when you donate a Gift of Security to Greater Toronto
United Way Greater Toronto the taxable 1. Sell 2. Donate
capital gain is completely eliminated. securities securities
and through
You will also receive a tax receipt for donate UWTYR
the full market value of the security in after-tax
the amount of the closing trading price proceeds
on the day United Way Greater Toronto Current Market Value $10,000 $10,000
received the security.
Cost of Security $5,000 $5,000
Capital gain $5,000 $5,000
This multiplies the impact of the tax
Taxable capital gain (50%) $2,500 $0
benefit of your charitable giving.
Tax due on gain at Mar- $1,085 $0
ginal Rate (e.g., 43%)*
Tax receipt amount $8,915 $10,000
Total tax credit* $3,869 $4,340
Net tax savings $2,784 $4,340
* Examples use Ontario Federal and Provincial combined tax rate
Making a Gift of Securities
is as easy as calling 416-777-2001
2019 United Way Greater Toronto Finance Guide
28PAYROLL DEDUCTIONS
If you have any questions about payroll deduction remittances and receipt information,
please contact: Accounts Receivable Administrator, 416-777-1444, ext. 283.
Why set up payroll deduction
Donors find payroll deduction the most convenient way to contribute to United Way. Payroll
deduction also eliminates the need for costly direct billing by United Way and ensures that
pledges are collected regularly and forwarded to recipient agencies on a timely basis.
It is very simple to set up a payroll deduction plan
The Payroll Deduction Report from UnitedWay@work can be used to directly enter the
pledges of all employees who authorize payroll deduction into your payroll system.
Please forward all payroll deductions to United Way’s Account Receivable Administrator on
a monthly basis, as United Way’s commitment to its agencies is to remit funds every month.
It is your responsibility to reconcile the payroll account and remit the total amount of employee
deductions for each pay period. If you are unable to forward payroll deductions on a monthly
basis, please contact United Way to establish a payment plan that is more suitable for your
organization.
Electronic transfer of employees’ payroll deduction remittances and
reports
United Way Greater Toronto uses a payment process which facilitates the importing of pay-
roll remittance data directly onto our fundraising system.
• This method allows United Way to apply the monthly payroll deduction amount for each
employee against the employee’s payroll donation record.
• Forwarding the report electronically eliminates costs being incurred by your organization
i.e., printing, photocopying, postage, etc.
• Donor designations to other charitable organizations will be paid to the charities
more accurately, as the payout will be based on the actual payments forwarded and
processed on behalf of each employee who donated via payroll.
• United Way prefers to receive payroll deduction remittances via Electronic Fund
Transfers (EFTs) vs cheque payments. The advantages of this payment method are as
follows:
Reduced exposure to fraudulent transaction,
No delays or lost payments
Reduced administrative costs
Overall increased efficiency and greater security.
2019 United Way Greater Toronto Finance Guide
29OUR MISSION
United Way Greater Toronto works to meet urgent human needs and
improve social conditions by mobilizing the community’s volunteer and financial
resources in a common cause of caring.
OUR COMMITMENT TO YOU
Each year, United Way’s efforts to build a better community are supported by thousands
of people across the region. We deeply value the trust you place in us. We work
to ensure your gift to United Way is making a difference in our community. Your
investment supports local programs and initiatives that help people and families—
both today and in the future.
Corporate Office: Peel Region Office: York Region Office:
26 Wellington St E 12th Floor 90 Burnhamthorpe Rd. W. 80F Centurian Drive Suite 206
Toronto ON M5E 1S2 Suite 408, PO Box 58 Markham ON L3R 8C1
Tel 416 777 2001 Fax 416 777 0962 Mississauga ON L5B 3C3 Tel 905 474 9974 Fax 905 474 0051
TTY 1 866 620 2993 Tel 905 602 3650 Fax 905 602 3651
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