the silver guide to non-monetary transactions

glossary

Contributions

Transfers, with no cash counterpart or other assets, to a non-profit organization, or settlements or cancellations with no consideration of liability to that organization such as a cash donation.

Fair value

A payment amount agreed upon by willing parties in the normal course of business, on a level playing field such as retail sales prices of local or online commerce.

GST/HST Rebate

Also called Public Service Bodies Rebate, is a refund for qualifying non-profit organization of taxes paid on purchases, including those that were also acquired through bartered exchange.

In Kind Donation: see Contribution

Input tax credit (ITC)

A credit that GST/HST registrants can generally claim to recover the GST/HST paid or payable for property and services they acquired, imported into Canada, or brought into a participating province for use, consumption, or supply in the course of their commercial activities.

Non-monetary exchanges

Also referred to as “bartered exchanges” or “exchanges of goods and services”, exchanges of assets, liabilities, or non-monetary services against other assets, liabilities, or non-monetary services, with no or negligible monetary consideration such as in partnerships and co-productions where each partner contributes in kind goods and services of more or less equal value, commonly known as barter.

Non-profit organization

A person (other than an individual, estate, trust, charity, public institution, municipality, or government) that meets the following conditions:

  • It is organized and operated solely for non-profit purposes.
  • It does not distribute or make available any of its income for the personal benefit of any proprietor, member, or shareholder, unless the proprietor, member, or shareholder is a club, a society, or an association that has, as its primary purpose and function, the promotion of amateur athletics in Canada.

Public service body

A charity, non-profit organization, municipality, university, public college, school authority, or hospital authority.

Qualifying non-profit organization

A non-profit organization or prescribed government organization whose percentage of government funding is at least 40% of its total revenue.

Registered charities

Charitable organizations, public foundations, or private foundations that are created and resident in Canada. They must use their resources for charitable activities and have charitable purposes that fall into one or more of the following categories:

  • the relief of poverty
  • the advancement of education
  • the advancement of religion
  • other purposes that benefit the community

Service

Service means anything other than:

  • property
  • money
  • anything that is supplied to an employer by a person who is or agrees to become an employee of the employer in the course of or in relation to the office or employment of that person.

Sponsorship

A sponsorship is an exchange of goods between a sponsor and another party through which the sponsor commits to donating money, goods or services in exchange for access to the commercial potential of an activity. Sponsorship fees are not donations and the organization cannot deliver a charitable receipt for sponsorships because the sponsor typically receives the benefit of visibility in exchange. Sponsorships can be given in the form of cash, goods or services.

Supply

The provision of property or a service in any way, including sale, transfer, barter, exchange, licence, rental, lease, gift, and disposition.