The use of a property is not the same as the transfer of a property. However, if the charity pays for the use of the property and the owner of the property donates that money back to the charity, the charity can issue a tax receipt for the donation (known as a cheque swap).
Example 1: Jane and Paul Proudfoot have a cottage in the Gatineau Hills. They donate a week at the cottage to a silent auction run by their favourite charity. Because the donation of use of the cottage is not a transfer of property, a tax receipt cannot be issued. However, if the charity paid for a week at the cottage and the Proudfoot's donated the payment back to the charity, a charitable tax receipt could be issued. Of course, the Proudfoot's would have to declare this as income, and so there may not be any net benefit to them.
Charity Tax Tools