the silver guide to non-monetary transactions

5.3. Donation of services

A donation of services is not eligible for a charitable tax receipt. In order to provide a donor of services with a tax receipt, the donor providing the service must issue an invoice, the organization must pay the invoice, and, finally, the donor must return the amount to the organization in the form of a cash donation. Based on the banking records, you must be able to demonstrate that two distinct transactions have occurred: first, the provision of services, and second, the receipt of a donation by the organization.

See Diagram 3 in the Toolkit