Di-Octo, by artist Anthony Howe was donated to Concordia by Jonathan Wener, BComm 71

A gift-in-kind includes securities, real estate and tangible property, such as artwork, books, equipment and the like.

If you choose to make this type of gift, you and the University will agree on how it will be used. However, the University is given the right to keep and use the property or sell it for the proceeds.

You will receive a charitable donation receipt, which will be based on the fair market value of the property on the date of the gift. This value is easily determined for publicly traded stocks and bonds, but a qualified appraiser must determine the value of tangible property if it is valued at over $1,000. The appraiser must not be associated with you or the University, and all charges for the appraisal would be your responsibility. Property estimated to be worth less than $1,000 may be appraised by a qualified individual working for the University.

The tax credit for in-kind gifts is governed by the same rules as for cash donations.

Appreciated Property

Securities, real estate and tangible property you choose to donate have likely appreciated in value since acquired. When you contribute appreciated property, under current tax law you have received proceeds equal to the fair market value, because you receive a tax receipt for the appreciated amount and not what you originally paid for it. Thus, you will be taxed on 50 percent of your capital gain. In the case of publicly listed securities, you will be taxed on 25 percent of the gain.

Cultural Property

In the 1970s, the Canadian government introduced the Cultural Property Export and Import Act to preserve the country's special treasures—such as paintings by Canadian artists or handcrafted furniture—by encouraging donors to keep them in Canada.

Donors of such property receive additional tax incentives from the Canada Customs and Revenue Agency. In addition to a charitable donation receipt for the fair market value, you may claim 100% of the gift (to a maximum of net income) in a given year, without having to pay any capital gains tax if the property has appreciated in value since you acquired it.

Your tax savings can be substantial. For instance, if the cultural property is valued at $100,000, your combined federal and provincial tax savings could be $45,000 to $50,000, depending on your provincial tax rate, and you would pay no income tax on the gain.

Concordia University has two category "A" repositories of cultural property: the Leonard and Bina Ellen Art Gallery, which specializes in contemporary Canadian art, and the Concordia University Library. If you have an item that you would like to donate, it must first be certified as cultural property by the Canadian Cultural Property Export Review Board. Concordia must make this application on your behalf. You will also need to obtain qualified, external appraisers.

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