Consolidated Receipts in Raisers Edge and CRA Tax Receipting Guidelines

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It’s that time of year again – time to issue those year-end tax receipts. Join us as we go over some best practices and some useful tips and tricks in The Raiser’s Edge, while making sure that your tax receipts are compliant with the Canada Revenue Agency guidelines.

Speaker: Kirk Schmidt, Director of Professional Services with Method Works Consulting

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  • Quick intro to who I am:-Officially entered the sector when I worked for the Canadian Cancer Society AB/NWT as the database analyst.-After almost 3 years, went into consulting. I have extensive experience with the Blackbaud suite of products, and a little bit of experience with non-BB.-I speak at the Blackbaud Conference. The last two years has been as moderator for the Raiser’s Edge Geek Panel.-I have been assisting Blackbaud beta test their new certification program. I have taken the Associate and Professional exams, being one of the first 5 non-Blackbaud people to get Professional Certification. As it stands, there are still less than 20 non-Blackbaud people certified at this level. I am expected to take the Master exam in the next month or two.-I have a standing meeting with Blackbaud every month to help with discovery of Bluebird.
  • We are going to start with the boring, but incredibly important stuff. After a little break, we will then resume with specifics in The Raiser’s Edge. Some of you might not have RE, but if you feel like staying, while the content will be designed for RE, it may still be useful to you.
  • We are only going to cover a small cross-section of what you should know for CRA compliance. I recommend that you go to the resources I list to read more if you don’t know. And, if you are unsure: ASK
  • First and foremost – YOU DO NOT HAVE TO ISSUE A TAX RECEIPT. I’m not going to read the piece here, but this is straight from CRA.You are under no legal requirement to issue a receipt. Receipts are a service that the charity provides to its donors.
  • http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/whn-eng.html
  • This is the basic list. The full list is available on CRA’s website.You will notice I have some asterisks beside a few of these. We will come back to these in a moment.[Go through each]
  • Date when gift was received:-This is pretty simple with online gifts.-Mail is a little bit tougher. A lot of charities will use the date it was put in the mail at end of year, and actual receipt date the rest of the time.Middle Initial:Officially the legislation says you need to include the middle initial. We have asked CRA this many times with different clients, and always get the answer from their people that, effectively, “nobody does it and it’s not going to land you in trouble if you do not.” I do not represent CRA nor am I capable of making this interpretation, so always be diligent on your own.Amount of Gift:-Gifts in kind are not cash and require their own procedure.
  • You can issue one receipt for multiple cash gifts
  • If the fair market value is expected to be more than $1,000, we strongly recommend that the property be professionally appraised by a third party (that is, someone who is not associated with either the donor or the charity).http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/dtrmnfmv-eng.htmlhttp://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/dmdfmv-eng.html
  • http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/fndrsng-eng.html
  • http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/crrctn-eng.html
  • http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/bks-eng.html
  • The functionality I am going to show you is “Canadianized”If you look in your sample database, you may not have receipt stacks or other fun things. You can download a “Canadianizer”
  • Consolidated Receipts in Raisers Edge and CRA Tax Receipting Guidelines

    1. 1. CRA and RE Receipting
    2. 2. Introduction
    3. 3. WHO AM I?  Joined non-profit world in 2007.  Database analyst for a database of 1M constituents and several million gifts.  Joined Method Works in 2010.  Personally worked with 50 clients in RE, EE, FE, BBNC, OCC, Luminate, and/or Sphere.  Speaker at Blackbaud Conference for Non-Profits  2011, 2012, and 2013  Blackbaud Certified in The Raiser’s Edge.  One of the first 5 “civilians” certified at the Professional Level.  Involved in discovery process for Blackbaud’s “Bluebird.”
    4. 4. WHAT IS METHOD WORKS?  Fundraising systems consultants  Specialize in Blackbaud suite of products.  HQ is Calgary. Consultants in Vancouver and Toronto as well.  70 years of combined experience in The Raiser’s Edge.  Total geeks.
    5. 5. OUTLINE CRA Policy  What should be on your receipt?  What should you know about electronic receipting?  What can be included on a consolidated receipt? Receipting in RE  Differences between OneTime Receipts and Consolidated Receipts.  Setting up records for consolidated receipting.  Reissuing and reprinting, in compliance with CRA.
    6. 6. CRA POLICY IS FUN! When you're in Raiser's Edge training but would rather be dancing Source: FundraiserGrrl
    7. 7. CRA Policy
    8. 8. DISCLAIMER I am not a lawyer. Anything presented herein is based on my work in the charitable industry, discussing issues with CRA, and discussions with lawyers, and believed to be correct and complete within that framework. If you are unsure, ALWAYS ask CRA first.
    9. 9. OFFICIAL REGULATION Income Tax Regulations, CRC, c 945 Part XXXV: Gifts http://canlii.ca/t/524tc
    10. 10. ENSURE THAT YOU KNOW  There is a lot of content involved in tax receipting. We are only covering what we need to know for RE.  What is a gift? Who is a qualified donee? What are the recommendations for appraisals? Receipting for non-qualified investments. Etc. etc. etc.
    11. 11. FIRST AND MOST IMPORTANTLY YOU DO NOT HAVE TO ISSUE A TAX RECEIPT Does a registered charity have to issue official donation receipts for gifts it receives? No. Receipting carries with it a certain administrative burden, and receipted donations increase a registered charity's spending obligation. Therefore, registered charities may choose to issue receipts according to certain criteria, or they may choose not to issue receipts at all. Some registered charities set minimum donation thresholds for receipting. Others do not provide receipts during certain fundraising events. Remember that donors cannot claim a charitable tax credit or deduction unless they are issued an official donation receipt. Therefore, registered charities are strongly advised to make potential donors aware of any circumstances in which a receipt will not be issued. Source: http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/rqss-eng.html
    12. 12. WHEN SHOULD I RECEIPT?  You want to receipt so that your donors can claim the amount on their taxes.  CRA recommends by February 28 of the following year.
    13. 13. WHAT NEEDS TO BE ON A RECEIPT  Name and address (Canada) of organization  Charity registration #  Place where receipt was issued  Date receipt was issued  Name and website of CRA  “Official Donation Receipt For Income Tax Purposes”  Receipt Number  Full name of donor, including middle initial*  Address of donor  Amount of gift*  Date when gift was received*  Description and amount of advantage  Amount eligible for receipt  Signature of authorized person
    14. 14. *ASTERISK  Date when gift was received  MAIL vs. ONLINE  Full name of donor, including middle initial  Legislation says middle initial  Amount of gift  Gifts in kind
    15. 15. CONSOLIDATED RECEIPTING Gift 2 Gift 1 Gift 3 Receipt
    16. 16. GIFTS IN KIND  CANNOT be consolidated. You must give ONE receipt PER item.     Date received (not simply year) Description of the property Name and address of appraiser (if appraised) Fair market value*
    17. 17. GIFTS… WITH BENEFITS  Raiser’s Edge calls them Benefits. In CRA-land, we call it “advantage amount.”  Raiser’s Edge DOES NOT consolidate these well.  Any time the donor receives something of value  Fair market value must be determined on the advantage  Meals, Green Fees, Complimentary Items
    18. 18. CONTROLS  Serial receipts  Raiser’s Edge does this with receipt stacks.  Important accounting control  Signatures  A receipt cannot be issued without an authorized signature  Can be electronic. Recommend another control.
    19. 19. ELECTRONIC RECEIPTING  You can receipt electronically and email a receipt.  Protect the receipt as best as possible  Using a secure system such as The Raiser’s Edge to generate  Copies retained, stored on non-erasable media  Encrypted and signed with a digital signature*  CPS-014
    20. 20. SPECIAL RULE: QUEBEC  If you are issuing to a resident in Quebec, issue a second receipt with the same serial number. Numéro Un Numéro Deux
    21. 21. RE-ISSUING A RECEIPT  Must still have all required information  Include serial number of original (or, previous) receipt  Statement that it cancels and replaces original (or, previous) receipt  “Cancelled” on receipt on record.
    22. 22. STORING RECORDS  Must be kept for a minimum of two years from the end of the calendar year in which the donations were made.  Can be electronic!  Readable, accessible  Anything sent electronically (e-receipts) should be stored electronically  Same retention rules  Non-erasable media, stored offsite is recommended
    23. 23. RESOURCES  Canada Revenue Agency www.cra.gc.ca/charities  Mark Blumbergs’ Receipting Kit http://www.globalphilanthropy.ca
    24. 24. Receipting in RE
    25. 25. RECEIPT FUNCTIONALITY
    26. 26. RECEIPTING IN THE RAISER’S EDGE  Review how to receipt in The Raiser’s Edge  Performing Consolidated Receipts  Reprinting/Reissuing Receipts
    27. 27. Basics of Receipting
    28. 28. RECEIPT STACKS  Some charities do new receipt stacks per year  Some never change receipt stacks  Some have different receipt stacks for different gifts.  Configuration -> Tables
    29. 29. MAIL: RECEIPTS
    30. 30. MAIL: RECEIPTS
    31. 31. MAIL TABS  Filters, Attributes, Ind. Address, Org. Address, and Format are similar in other Mail Functions  Gift Types can be used to restrict Gifts in Kind  eReceipts can be used to send email receipts through The Raiser’s Edge
    32. 32. MAIL MERGES IN RE Simple Mail Merge  One Word template for all receipts in that parameter file.  Best for Consolidated receipts.  Any dynamic content to be handled by IF-THEN-ELSE  Conditions can be on multiple fields Conditional Mail Merge  Multiple Word templates based on different data.  Does not work well for Consolidated in most cases  Need a template for each value, or need to build a catch-all  RE Condition only works on one field
    33. 33. MAIL MERGES Note: In order to send to the Word Merge Wizard, you must have a gift that is receiptable .
    34. 34. IF-THEN-ELSE Examples:  Special messaging  If values do not exist { IF Fund_description_1 = "ANNUAL" "Thank you for giving to our Annual Fund" "Thank you for your generous gift" }
    35. 35. RUNNING RECEIPTS
    36. 36. Year-End/Consolidated Receipts
    37. 37. WHEN CAN YOU CONSOLIDATE? Cash Donations can be consolidated by year. One-Time Receipts must be issued for Gifts in Kind. One-Time Receipts should also be issued for gifts with advantage amounts due to how Raiser’s Edge works. http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/whn-eng.html
    38. 38. RECEIPT TYPES One Receipt Per Gift  Multiple receipts  Individual Gift Amounts  Campaign, Appeal, Fund  Benefit Information Consolidated Receipts  One Receipt per Run  One gift total, calculated by The Raiser’s Edge  No gift-specific information
    39. 39. THE CONSTITUENT RECORD
    40. 40. RECEIPTING STEPS  If you don’t receipt throughout the year and you want to issue all receipts: 1. Deal with your GIKs and Benefit receipts first 2. Perform Consolidated Receipts
    41. 41. THE PROBLEM  The fundamental issue:  Raiser’s Edge will consolidate all receipts based on parameters if the constituent is set to “Consolidated Receipts”  Raiser’s Edge will receipt one receipt per gift if the constituent is set to “One Receipt Per Gift”  GLOBAL CHANGES
    42. 42. YEARLY PROCEDURE 1. Set up your parameter file 2. Run one receipt per GIK/Benefit gifts 1. Global changes, query of changed records 2. Receipt 3. Revert Records 3. Consolidate Cash Gifts 1. Global Changes, query of changed records 2. Receipt 3. Revert Records
    43. 43. SET UP PARAMETER FILE(S)  Mail: Receipt  One parameter file will work for BOTH One Receipt Per Gift and Consolidated  Any gift-specific fields will not be sent in the Conditional; Think about how you lay out your content.  No specific Gift Date. Use the Year.
    44. 44. GIKS AND BENEFITS  We need to run our GIKs and Gifts with Benefits separately  All constituents should be marked as “One Receipt Per Gift”  This might mean a global change.
    45. 45. GLOBAL CHANGE  Admin  Global Change  Constituent  Replace “Consolidated” with “One Receipt Per Gift”  Create Query of Changed Records
    46. 46. RUN RECEIPTS  Now we can run our receipts  Once we are done, we revert:  Global Change using the Query we created when we ran the first time.  Run the opposite: Change “One Receipt Per Gift” to “Consolidated Receipts”
    47. 47. YEARLY PROCEDURE 1. Set up your parameter file 2. Run one receipt per GIK/Benefit gifts 1. Global changes, query of changed records 2. Receipt 3. Revert Records 3. Consolidate Cash Gifts 1. Global Changes, query of changed records 2. Receipt 3. Revert Records
    48. 48. LATHER, RINSE, REPEAT  Change all One Receipt Per Gift to Consolidated  Run our receipts  Revert as needed
    49. 49. ALTERNATE PROCEDURE  If you are more comfortable with Import, you can use Import to perform the same functions.  Exporting all constituent Import IDs and Receipt Types provides you with a backup.
    50. 50. NOTES  Always test first. Do not “Mark Receipted” on first run – verify that you are getting what you expect.  Ensure that you are only receipting for one year. Gift Date will not come through, so you will need to add the year into the receipt file (ideally in the parameter template)  If you only receipt once per year, it’s probably best to leave constituents as “Consolidated” and not worry about reverting.
    51. 51. Voiding and Reprinting
    52. 52. TWO WAYS TO REPRINT Using Mail  You need to create separate parameter files for both reissue and reprint  Functionality issues with multiple receipt stacks  Can reprint large numbers of receipts at once. On the Gift Record  You can use the normal receipt parameter files  You can add specific notes on the reprint  Can only reprint one receipt at a time, and does not work well for consolidated.
    53. 53. REPRINTING IN MAIL Reissue  Same receipt number Reprint  New receipt number
    54. 54. REPRINTING IN MAIL  Exactly the same as creating a receipt parameter file.  Easiest procedure is to copy/paste receipt merge from Word.  Note: Word copy/paste does NOT transfer margins and other page options.
    55. 55. ON THE GIFT RECORD
    56. 56. VOIDING RECEIPT NUMBERS  We recommend an additional process for listing Voided receipts.  Advantages:  Easy to query/provide to auditors  Can set to pull into any receipt parameter file  Consider attributes or notes
    57. 57. RECEIPTING IN THE RAISER’S EDGE  Review how to receipt in The Raiser’s Edge  Performing Consolidated Receipts  Reprinting/Reissuing Receipts
    58. 58. CRA and Raiser’s Edge Receipts
    59. 59. REVIEW CRA Policy  What should be on your receipt?  What should you know about electronic receipting?  What can be included on a consolidated receipt? Receipting in RE  Differences between OneTime Receipts and Consolidated Receipts.  Setting up records for consolidated receipting.  Reissuing and reprinting, in compliance with CRA.
    60. 60. RESOURCES FOR CRA  Canada Revenue Agency www.cra.gc.ca/charities  Mark Blumbergs’ Receipting Kit http://www.globalphilanthropy.ca
    61. 61. VERSIONS  Screenshots are from:  Windows 7 Professional  The Raiser’s Edge 7 (Mostly 7.92 Patch 2)  Microsoft Office 2013 64-Bit* *Note: 64-bit Office is not supported by Blackbaud
    62. 62. CONTACT US Kirk Schmidt Director of Professional Services 800.278.4892 x705 403.971.9905 kirks@methodworksconsulting.com www.methodworksconsulting.com

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