Glossary: A

(1) | A (8) | B (2) | C (10) | D (10) | E (3) | F (5) | G (5) | K (1) | L (2) | M (3) | N (2) | O (1) | P (6) | Q (2) | R (4) | S (75) | T (2) | U (2)
  • Tax shelter

    Generally, a tax shelter is any arrangement where the tax benefits equal or exceed the net cost of entering into the arrangement.

  • The purchase of goods or services from a charity

    The purchase of goods or services from a charity is a commercial transaction, not a gift, and is therefore not eligible for a tax receipt. In certain circumstances, however (for example, when the purchaser pays more than the fair market value of the goods or services with the intention that the overpayment be donated to the charity), a receipt can be issued for that part of the payment that represents a donation (see Split Receipting)

    Example 1: A person buys a book worth $30 from a charity and pays the charity $30 for it. This is a commercial transaction, not a gift. Therefore no receipt can be issued.

    Example 2: A person buys a book worth $30 from a charity but gives the charity a cheque for $50. Part of the payment ($30) represents an advantage to the donor (that is, the book), and the rest ($20) represents a donation. Therefore a receipt can be issued for $20 – the difference between the cash received by the charity and the advantage obtained by the person (see Split Receipting for limitations on issuing receipts in such cases).

  • Charitable activity

    A charitable activity is an activity carried out by a registered charity to further its mission.

  • Connected activity

    An activity that relates to and supports a charity's purpose and is a reasonable way to achieve it.

  • Subordinate activities

    Activities are subordinate if they that are subservient to a charity's charitable purpose or are a minor focus of the charity in relation to its entire program of activities.

  • Partisan political activities

    Political activities are partisan if they directly or indirectly support or oppose a political party or candidate for public office.

  • Directors/trustees

    Directors and trustees are persons who make up the registered charity's elected or appointed governing body. This generally means persons who hold positions identified in the registered charity's governing documents, such as chair, treasurer, secretary, or past president. The registered charity's governing board includes all its directors and trustees.

    (CRA : Charities Glossary)

  • Advantage

    An advantage is the total fair market value of all property, services, compensation, or other benefits that a donor receives or is entitled to receive in return for making a gift. The benefits may be contingent or receivable in the future, by either the donor or any person or partnership not dealing at arm's length with the donor.

    Determining the fair market value of an advantage is similar to determining the fair market value of a gift in kind. However, while only property is a gift in kind, all types of advantage (for example services, accommodation, use of property) must be valued.

    An advantage also includes any limited-recourse debt in respect of the gift. However, the calculation of an advantage does not include taxes such as GST, PST, or HST. As well, it does not include gratuities, unless they are included in the cost and are not discretionary.
    For more information, see Pamphlet P113, Gifts and Income Tax.

    (CRA : Charities Glossary)