Donation Receipt (Ghana)

A Donation Receipt in Ghana records the voluntary transfer of property as a gift, made without payment from the recipient.

Section 97 of the Income Tax Act, 2015 (Act 896) permits a resident individual or company in Ghana to deduct from assessable income any donation made to a specified institution — commonly referred to in Ghanaian tax practice as a "qualified donee" — up to a maximum of 25% of assessable income for individuals and 25% of chargeable income for companies. Qualified donees include organisations approved by the GRA, universities and educational institutions, hospitals and health facilities registered under the Health Facilities and Regulatory Agency (HEFRA), and religious bodies registered with the Registrar General's Department (RGD) as companies limited by guarantee under the Companies Act, 2019 (Act 992).

The Registrar General's Department (RGD) registers charitable organisations as companies limited by guarantee or as trusts under the Incorporated Private Partnerships Act, 1962 (Act 152). An organisation must obtain a Tax Identification Number (TIN) from the GRA and apply for exempt status under Schedule 1 of the Income Tax Act, 2015 (Act 896) before it can issue Donation Receipts that qualify donors for tax deductions. The GRA audits charitable organisations' records under Section 110 of Act 896 and may disallow deductions where a Donation Receipt does not comply with the required format.

A Donation Receipt in Ghana must be distinguished from a general Payment Receipt, which merely acknowledges payment for goods or services and carries no tax deduction implication, and from a Grant Agreement, which documents a structured funding arrangement between a donor organisation and a recipient body that typically involves conditions, reporting obligations, and a written agreement under Ghanaian contract law.

For in-kind donations — such as motor vehicles, equipment, food supplies, or real property — the Donation Receipt must include a description of the donated item and its estimated fair market value in Ghana Cedis (GHS) as assessed by a qualified valuer or accepted by the GRA. Real property donations must be accompanied by a valuation consistent with the Land Valuation Division of the Lands Commission under the Lands Commission Act, 2008 (Act 767).

The legal framework governing the Donation Receipt (Ghana) in Ghana draws on several key statutes and regulatory bodies. Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Parties executing a Donation Receipt (Ghana) in Ghana should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Income Tax Act 2015 (Act 896) sets the foundational requirements.

A Donation Receipt in Ghana is required whenever a qualifying organisation receives a charitable contribution and needs to provide the donor with documentary evidence for tax or record-keeping purposes.

A Donation Receipt is required when an individual taxpayer in Ghana makes a cash donation to a GRA-approved charitable organisation and wishes to claim the deduction permitted under Section 97 of the Income Tax Act, 2015 (Act 896) in their annual self-assessment return filed with the Ghana Revenue Authority (GRA). Without a compliant Donation Receipt, the GRA will disallow the deduction on audit.

A Donation Receipt is needed when a company incorporated under the Companies Act, 2019 (Act 992) makes a corporate donation — to a hospital, university, or registered NGO — and wishes to deduct the amount from its chargeable income before computing corporate income tax payable to the GRA. The GRA requires a valid Donation Receipt as primary supporting documentation.

A Donation Receipt is required when a church, mosque, or religious body registered with the Registrar General's Department (RGD) as a company limited by guarantee receives tithes, offerings, or designated charitable gifts from members or external donors who intend to claim tax relief under Act 896.

A Donation Receipt is needed when an NGO registered with the Department of Social Welfare and registered with the RGD receives grant funding or donations from international donors, as many international development finance organisations require an official Donation Receipt as part of their own compliance and reporting obligations to their home-country tax authorities.

A Donation Receipt is required following any fundraising event — such as a charity dinner, telethon, or auction held in Accra, Kumasi, or other Ghanaian cities — where donors paid identifiable amounts and expect documentary confirmation of their contribution for personal records or employer expense reimbursement purposes.

Organisations in Ghana should issue Donation Receipts promptly after receiving each contribution. The GRA recommends that charitable organisations maintain a sequential receipt register and retain copies for a minimum of six years to support potential GRA audits under Section 110 of the Income Tax Act, 2015 (Act 896).

A valid Donation Receipt in Ghana under the Income Tax Act, 2015 (Act 896) and GRA guidelines must contain the following essential elements.

Organisation Details: The full registered name of the issuing charitable organisation, its registration number issued by the Registrar General's Department (RGD), its Tax Identification Number (TIN) issued by the Ghana Revenue Authority (GRA), and its registered address. Donors need the TIN and registered name to substantiate the deduction in their GRA self-assessment return under Section 97 of Act 896.

Receipt Number and Date: A unique sequential receipt number and the date on which the donation was received. Sequential numbering allows the GRA to cross-reference receipts against the organisation's financial records during an audit under Section 110 of the Income Tax Act, 2015 (Act 896).

Donor Identification: Full name of the donor (individual or corporate entity), the donor's TIN where the donor intends to claim a deduction, and contact address. For corporate donors incorporated under the Companies Act, 2019 (Act 992), the company registration number issued by the RGD is also required.

Donation Amount or Description: For cash donations, the exact amount in Ghana Cedis (GHS) received. For in-kind donations, a detailed description of the donated item, quantity, and estimated fair market value in GHS, consistent with valuations acceptable to the Lands Commission (for property) or as assessed by a recognised valuer for equipment and motor vehicles.

Purpose of Donation: A brief statement of the purpose for which the donation is received — for example, "general charitable purposes", "bursary fund", or "medical equipment" — which must be consistent with the organisation's exempt purposes as approved by the GRA under Schedule 1 of Act 896.

Exemption Status Confirmation: A statement confirming that the receiving organisation holds GRA-approved exempt status and that the donation qualifies under Section 97 of the Income Tax Act, 2015 (Act 896) for deduction by the donor, up to 25% of the donor's assessable income or chargeable income.

Authorised Signature: Signature of an authorised officer of the organisation — typically the Executive Director, Treasurer, or Finance Manager — together with their name and designation. The forms-legal.com Donation Receipt template includes all mandatory fields required for GRA compliance and supports both cash and in-kind donation acknowledgments.

No Goods or Services Statement: Where applicable, a statement that no goods or services were provided to the donor in exchange for the donation, confirming the contribution is a qualifying gift rather than a payment for value, consistent with GRA guidance on qualified donees.

Additional compliance elements for a Donation Receipt (Ghana) used in Ghana include: Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.