# Charitable Donation Reassessment



## jumbalaya (Jan 17, 2013)

so I had to provide documentation for proof of charitable donations. I got my notice of reassessment which said the following:

"We have adjusted your claim for donations and gifts from XXX to the maximum allowable of YYY. If an allowable amount remains, you can claim it in a later year."

now XXX > YYY. I was wondering where they got YYY from? I didn't give more than 75% of my net income.

Is YYY the amount that they allowed (and disallowed the difference between XXX and YYY of $444)?

Do I get to claim the $444 in the next 5 years?

Thanks!


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## humble_pie (Jun 7, 2009)

jumbalaya said:


> ... I got my notice of reassessment which said the following:
> 
> "We have adjusted your claim for donations and gifts from XXX to the maximum allowable of YYY


wondering if you filled out & filed schedule 9 for donations? it would have produced the YYY figure, which then gets transposed to schedule 1 ...

good luck, it's true that any part of your actual $$ donation that you didn't get to claim this year will carry forward to future years


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## jumbalaya (Jan 17, 2013)

I did all this stuff on the computer, so if I was required to, I would've done it. I don't recall anything specifically 

I'm trying to figure out if the $444 is eligible or not... does "maximum allowable" mean "the only donations that qualified"?

they all should have been eligible imo.


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## Eclectic12 (Oct 20, 2010)

Perhaps I'm missing something but I can think of three reasons for CRA to disallow the $444.

The first is if it represents being over the 75% of net income (which is not supposed to be the case from what's posted).

The second is if the receipts supporting the $444 were from organisations that aren't allowed or the specific thing receipted isn't allowed (does not sound likely as I'd expect some form of write up saying to be more careful).

The third is if the donations are from more than five years in the past, which this link say is the limit (plus I seem to recall this in a tax book I've read).
http://www.cra-arc.gc.ca/chrts-gvng/dnrs/svngs/clmng1-eng.html

Note that if one isn't already over the 75% net income threshold on a previous year tax return - one may be able to file an adjustment to a previous year tax return to make use of the old receipt.


Other than these reasons - I'm not aware of what the rejection could be based on.
If it's not clear, I'd be phoning CRA to get a better explaination (and hopefully avoid any issues going forward). 

Cheers


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## Eclectic12 (Oct 20, 2010)

jumbalaya said:


> I did all this stuff on the computer, so if I was required to, I would've done it. I don't recall anything specifically


So in theory, you should have the original file to be able to confirm.




jumbalaya said:


> I'm trying to figure out if the $444 is eligible or not... does "maximum allowable" mean "the only donations that qualified"?
> they all should have been eligible imo.


Since you are under 75% of net income - without more info, the most likely issue is that there's something wrong with the $444.
The reasons I can think of, suggest they also won't be allowed in future years.

The question is what is the ineligibility based on.


Cheers


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## jumbalaya (Jan 17, 2013)

yeah... seems like there's somethiing wrong with the $444. I remember when adding things up, 2 of the donations added to $444. maybe luck, maybe not. I guess I'll have to call in. was hoping for a quick answer to how the YYY was calculated.... thought I missed something.

i'll check the original file to confirm tonight.

all donations were within 5 years.

thanks humble_pie and Eclectic12!


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## heyjude (May 16, 2009)

The government changed the rules recently to make the list of eligible charities shorter. Only Canadian charities in good standing with Revenue Canada are eligible. For example, I wanted to donate to the Malala Foundation, but I found that it was not on the list because it is registered abroad.

http://www.cra-arc.gc.ca/charitiesandgiving/


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## Guban (Jul 5, 2011)

It could also be a name mismatch. Do you have a foreign name and an English name? I've seen that with Bill vs. Vasilios. CRA may think it is a different person.


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## Eclectic12 (Oct 20, 2010)

jumbalaya said:


> yeah... seems like there's somethiing wrong with the $444...
> I guess I'll have to call in. was hoping for a quick answer to how the YYY was calculated....


Without some sort of comment on the NOA ... there's no way to figure out how YYY was arrived at, when XXX is larger.

Another possibility that occurs to me is if $444 represents a disconnect between the numbers entered into the program (ex. double count a donation or amount on receipt was $200 where $300 was entered into the program).

If you review the receipts for the dates and amounts ... does each item plus the total add up to what the program has recorded? 
Are any of the dates/amounts duplicated?


Note that when I make the donation, I keep a spreadsheet of each amount/date as way to verify the receipts received at a later date.

This is because I noticed one year that the CC used to make the donation recorded a $400 donation and the receipt that came via mail in Feb the following year from the charity was for $250. After contacting both parties, it turned out that the problem was with the charity.


Cheers


*PS*

Since the CRA should be able to dig out the details of why the $444 was not accepted - it's probably the most efficient place to start. Otherwise, it's what records you have to try to figure out a direction to investigate.


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## jumbalaya (Jan 17, 2013)

yea it could be the list of charities... hm.

no foreign name issue.

no comment in NOA. all the numbers from the receipts i scanned and uploaded to them added up to the total. i was just trying to get an answer without having to call them (takes forever to connect lol).


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## lb71 (Apr 3, 2009)

With your notice of reassessment, did you have to pay for an increase in taxes due to the reduction in your tax credits? If not, it could be that you didn't need the $444 to max out on your tax credits. 

Did you incorrectly claim the First Time Donor credit? (Perhaps you incorrectly entered or read a donation date. eg, March 8 was entered as Aug 3. 3/8/13 vs 8/3/13, different charities use different formats.)

Did you donate property? There could be a valuation issue.


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## jumbalaya (Jan 17, 2013)

I owe CRA money now, if that's what you mean.

I used the FTDC, but doubt I entered it wrong. Possible, however.

No donation of property.


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## domelight (Oct 12, 2012)

jumbalaya said:


> yea it could be the list of charities... hm.
> 
> no foreign name issue.
> 
> no comment in NOA. all the numbers from the receipts i scanned and uploaded to them added up to the total. i was just trying to get an answer without having to call them (takes forever to connect lol).


I agree with everything Electric 12 is saying so far, so if its not 75% of net income and its not a carry forward beyond 5 years, and you haven't made an math mistakes..... 
So it has to be a disallowed amount, or the first time donor credit. I would expect CRA's letter would have said that "one or more receipts have been disallowed if it was a disallowed amount.

Rules of the super credit are.

--You or Spouse cannot have claimed a donation in previous 5 years.
--1,000 maximum for you and spouse combined.
--Only donations after March 20th are eligible for the credit

To check if the donations are eligible.

1. Check your donation receipts they should all have a 9 digit number followed by 2 letters and 4 more numbers like this 123456789RC0001. These are standard numbers used by CRA to administrate business's. each of the 2 letters mean something. a registered charity will have the two letters "RR" this will be deductable. if you see the letters RC or RT then this is not a registered charity and not eligible for deduction. For example Cops for tots or Shriners, although great organizations they are not registered charities.

2. Do you have any duplicates ?? check the date issued and/or the receipt number.
-a few charities will send a receipts everytime you donate & then an annual total at the end of the year.
-Did you donate at an event a get a receipt on the spot and then they mailed you a proper one later. (This is very common associated with funerals)

If this is still not resolving it I would call CRA and ask why 1-800-959-8281


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## Eclectic12 (Oct 20, 2010)

Re: Duplicate Receipts that domelight mentions.

I have seen something that's close ... and could cause double counting.

When the donation is made, a confirmation was mailed and then the official receipt was mailed in early the following year.

If I hadn't been tracking the details with my handy spreadsheet ... it would not have taken much to miss that the confirmation was missing the "official tax receipt" tag that the later one had. The layout, font etc were all identical for this charity so it was easy for one to assume both were official receipts so that the donation was double counted.


Cheers


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## domelight (Oct 12, 2012)

Actually I reread the question and the NOA says adjusted to max allowed so it must be the super credit which is simply 25% extra on donations up to $ 1,000. I suspect your overclaimed the credit.
If $444 was disallowed I would guess your total donation claim for the year was 2,776.00. (4 x 444 + 1,000)

If I'm wrong then knowing what XXX & YY are. May be helpful. Only thing left I can come up with is the March 20th date based on the OP's answers.


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## Connie Merrow (Sep 9, 2014)

*You can claimed it*

You can claimed it. My replicator tells me about it. I follow ctoption replicators. They helped me in all issues.


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## jumbalaya (Jan 17, 2013)

uhh so apparently I forgot to attach one attachment of $444. stupid mistake...

thanks everyone.


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