This article was written in conjunction with Sargent Solutions.
Trust is the cornerstone of any successful donor relationship. For Canadian nonprofits, that means demonstrating responsible stewardship of every contribution. While ensuring compliance with Canada Revenue Agency regulations might seem like a complex hurdle, it’s a powerful way to build trust and transparency with your supporters. Learn how Virtuous can help nonprofits stay compliant with CRA gift guidelines.
Trust is the bedrock of any strong donor relationship. While branding, messaging, and a positive experience all play vital roles, donors first want assurance that their contributions are managed responsibly. For Canadian nonprofits, this means adhering to the regulations set forth by the Canada Revenue Agency (CRA), including CRA gift guidelines.
Deciphering the ins and outs of gift compliance can be a complex and time-consuming process. It requires a thorough understanding of CRA guidelines and nonprofit CRM software that meticulously manages and tracks donations.
The good news is that Virtuous is specifically optimized for donor data management and offers features to help maintain gift compliance.
Follow us along in this blog as we explore how Virtuous simplifies CRA compliance for Canadian nonprofits, freeing you to focus on what matters most: your mission.
Guidelines for Gift Compliance for Canadian Nonprofits
Following CRA guidelines is vital for maintaining your charitable status as a Canadian nonprofit. It also ensures transparency and accountability, strengthens your reputation, and deepens donor relationships.
Here’s a quick rundown of what Canadian nonprofits need to be aware of:
- Am I required to issue an official gift receipt for every gift I receive? According to the CRA website, Canadian nonprofits are not required to issue receipts for gifts received. However, if you’re not issuing receipts, the donor should be informed beforehand.
- If it’s not required, why should I issue a gift receipt? A donor needs an official gift receipt to claim a charitable tax credit. Sending donors gift receipts can incentivize them to donate and build future trust with your organization.
- What format should the gift receipt be in? Every gift receipt must include several pieces of information, including the charity’s name and address, a unique serial number, the CRA-issued registration number, and the date the gift was received. A complete list of required fields can be found here.
- What happens if a previously issued gift receipt needs to be corrected? If you already issued a receipt that needs to be corrected, you can do so by issuing a replacement receipt. The replacement should include all the essential information, the serial number of the original receipt, and a statement that it replaces the original receipt.
- What happens if I don’t include the proper information on a gift receipt? The CRA website states, “A registered charity that issues an official donation receipt that includes incorrect information is liable to a penalty equal to 5% of the eligible amount stated on the receipt.”
Virtuous Helps Canadian Nonprofits Meet CRA Gift Guidelines and More
Staying compliant with CRA guidelines is non-negotiable, but it can often take valuable time away from your mission. What if there was a tool that could help streamline compliance, build donor trust, and free you to focus on what matters most?
Virtuous not only helps Canadian nonprofits navigate CRA requirements but also serves as a responsive nonprofit CRM designed to enhance donor engagement strategies and elevate fundraising efforts.
Let’s explore how.
CRA-Compliant Gift Receipting for Canadian Nonprofits
Sending a receipt after every gift is standard practice. With Virtuous, you can streamline this process by pre-setting emails to include a digitally signed PDF version of the receipt. This benefits your team by allowing you to export receipts as needed, and it gives donors an easy way to download and store their receipts for their records.
When a donor requests additional information about their giving history, you can easily access a comprehensive record of all receipts directly from their donor record, including the original receipt ID and any replacement receipt IDs issued. You can even create receipts in bulk to see a full picture of someone’s giving history. This especially comes in handy for specific requests, like a donor’s annual giving statement.
International Payment Processing for Across-the-Globe Generosity
For Canadian nonprofits with a global supporter base, Virtuous Payments enables seamless acceptance of domestic and international donations. If you prefer using another online donation platform, Virtuous offers dozens of native integrations with partners like Classy, Fundraise Up, and PayPal. Additionally, you can create custom integrations with our open API interface.
This seamless data integration between systems ensures you have the most accurate and up-to-date donor information at your fingertips, empowering you to make more strategic fundraising decisions.
By removing the barriers of data silos, Virtuous has helped organizations like Exodus Road communicate the right message to the right donor at the right time.
“We really appreciate that Virtuous was willing to work with and integrate with other systems. Virtuous isn’t an email marketing tool or peer-to-peer fundraising tool but instead focuses on being a great CRM and integrating with others.”
Jeanne Honsaker, VP of Advancement, Exodus Road
Multi-Currency Support for Donors Wherever They Are
If you’re a larger organization, you likely have supporters all over the world. Virtuous simplifies back-office administrative work by allowing you to track gifts across multiple currencies.
When a gift currency code differs from your organization’s culture, which is influenced by your organization settings in Virtuous, you can set a different currency code. Currently, Virtuous supports over 155 currency codes, including CAD, EUR, USD, and more.
A Nonprofit CRM That Checks Every Box for Canadian Nonprofits
As a growing organization, a basic, run-of-the-mill donor management system won’t cut it anymore. You need a comprehensive CRM tool designed to meet the unique needs of Canadian nonprofits.
Virtuous checks every box, from ensuring compliance with CRA guidelines to supporting international payment processing and multi-currency transactions.
Ready to take the next step? Schedule a demo today to see how Virtuous can help your organization meet CRA guidelines, simplify operations, and build stronger relationships with your donors.
Sargent Solutions is dedicated to helping charities and nonprofits in various areas, including software integration, prospect management, and gift processing. With clients across North America, no organization is too big or small.
