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This video tutorial explains the complexities of issuing official receipts for donated gift cards and gift certificates as per Canada Revenue Agency guidelines. The term "gift card" encompasses both gift cards and gift certificates. It is essential to note that if a gift card is donated by an issuer, such as a retail store, a charity cannot issue a donation receipt until the card is used to purchase items. Only after redeeming the gift card for goods or services can the charity issue a receipt for the amount spent. This process is necessary because a gift card represents a promise of a gift rather than an actual transfer of property until it is used.
