Sponsorship vs Donations for Canadian businesses and registered charities

There is much confusion in both businesses and registered charities in Canada about “sponsorships” vs. gifts. This confusion can lead to friction between charities and businesses and bad outcomes for both sides.

CRA has specific rules for businesses regarding sponsorship vs. donations, and it’s important for businesses and charities to understand the differences.

There is a difference between a business making a donation to a registered charity and a business entering into a sponsorship arrangement. When a business provides sponsorship to a registered charity, or to a charitable event, it is generally not a gift, and a charity generally cannot issue an official donation receipt for sponsorship. If a business gives funds to a charity and the charity issues an official donation receipt for the “gift,” then generally, the charity cannot give recognition to the business.

Many charities don’t understand the rules regarding when something should be a sponsorship or a gift. They often ask for sponsorship when it is actually a gift or ask for a gift when it is a sponsorship. Many charity agreements involving gifts and sponsorships also conflate these two concepts.

Unfortunately, many businesses don’t understand these rules either. This can lead to confusion, errors, and sometimes disappointment.

This course will provide an overview of the issues, including:

• Who can issue official donation receipts? What is a Qualified Donee vs a Non-Qualified Donee?
• Where can you find the list of qualified donees?
• What is a “donation” or “gift”?
• What is a “sponsorship”?
• What are the differences between donations and sponsorships?
• When would one want to use a donation vs. a sponsorship?
• Why a charity needs to understand the distinction?
• What are some of the charities and businesses' biggest mistakes in this area?
• Can a charity give a “sponsorship” to another charity or a non-qualified donee?
• A discussion of numerous examples of donations vs. sponsorship?

This course will be of interest to charities, including their board members, fundraising staff and financial management personnel. It will also be helpful to businesses that make donations and/or give funds for sponsorship and their professional advisors, considering how to have maximum impact with their gifts and/or sponsorships.

Those who attend this course will have access to a recording of the course for 1 year after the event.

$299

If you have questions, please call Lindsay Hazell at 416-361-1982 ext. 253 or e-mail lindsay@blumbergs.ca