Can a registered charity issue a donation receipt for a gift of property instead of cash?

Yes. A registered charity can issue an official donation receipt for a gift of property — sometimes called a gift in kind — such as artwork, real estate, securities, or equipment, provided the gift meets the general requirements for a charitable gift and the charity can determine the property's fair market value at the time of the donation. The receipt is issued for that fair market value, not for whatever the donor believes the item is worth.

Valuing the gift properly is the part that most often causes problems. For items of modest, easily determined value, the charity itself may be able to establish fair market value, but for anything significant or where value is genuinely uncertain, an independent appraisal is the safer approach, and CRA can look closely at receipts issued for inflated values. Special rules also apply where property was acquired specifically for the purpose of donating it, to prevent artificially inflated valuations.

Importantly, only property can be receipted this way — a volunteer's time or services, no matter how valuable, cannot be receipted as a gift, since the Income Tax Act does not treat donated services as a gift of property.