Donation of Listed Personal Property to a Registered Charity

I have a client who wishes to donate valuable sculptures to a Registered Charity. Will this be treated in the same way as a donation of shares where he gets a donation receipt for the market value, but does not have to pay capital gains tax?

A valuable sculpture would be a non-cash gift and the receipt would require all elements of an official donation recept, plus

  • the date the gift was received (if not already included)
  • a brief description of the gift received by the charity
  • the name and address of the appraiser (if the gift was appraised)

The amount of a non-cash gift must be its fair market value at the time the gift was made.

Sculpture is not on the following qualified security list.

What is a qualifying security?

Investments that are eligible for this special tax treatment include:

  • shares, rights, and debt obligations (typically bonds or debentures) that are listed on a prescribed stock exchange;
  • shares of a Canadian public mutual fund corporation and units of a mutual fund trust,
  • interests in a segregated fund trust;
  • ecologically sensitive land donated to a qualified donee other than a private foundation where certain conditions are met; and
  • a bond, debenture, note, or mortgage of the Canadian federal or provincial governments.

Qualifying stock exchanges generally include the Canadian National Stock Exchange (CNSX), the TSX Venture Exchange (Tiers 1 and 2), Montreal and Toronto stock exchanges, the NEO Exchange, and most major foreign stock exchanges such as the NYSE and NASDAQ.