I have been offered the opportunity to purchase a dog from a registered charity because it has failed its training to become a working support dog. The charity has asked me to give a donation of $2,000 via their website, and after I do this they will give me the dog. My question is; is the charity allowed to do this as the receipt will enable me to claim a tax deduction. I thought you weren't allowed to receive goods or services (the dog) in exchange for a donation? Can I claim this on my tax return?
Hi @GBetts,
Thanks for posting!
One of the rules for deduction for a donation is that you are not receiving, or expecting to receive, anything in return. In your situation, you're looking to provide a donation with the understanding that the charity will provide you a dog in return for the amount. Going off of this, it may not be considered a deductable donation or gift.
As for your question, there isn't a restriction stopping the charity from providing rewards like this. The implication is that it won't be considered a donation or gift anymore, but will instead be a contribution.
You can read more about gifts and donations on our website.
Let us know if you've got any questions.
All replies
Hi @GBetts,
Thanks for posting!
One of the rules for deduction for a donation is that you are not receiving, or expecting to receive, anything in return. In your situation, you're looking to provide a donation with the understanding that the charity will provide you a dog in return for the amount. Going off of this, it may not be considered a deductable donation or gift.
As for your question, there isn't a restriction stopping the charity from providing rewards like this. The implication is that it won't be considered a donation or gift anymore, but will instead be a contribution.
You can read more about gifts and donations on our website.
Let us know if you've got any questions.