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Vancouver's Moon Gate Foundation lost its charitable status after issuing a $4.8 million donation receipt for shares that hadn't actually been transferred to the charity yet — a gap of 19 months, by which point the shares had lost 91% of their value.
The CRA ruled there was no legal gift on the date stated, the receipt showed the wrong date and wrong value, and the donor effectively received a massive tax benefit without ever parting with the shares.
The case is a sharp reminder that share donations are only complete — and receipts only valid — when the shares physically land in the charity's brokerage account.
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