20 /
Notes, continued
(8) The donation value of a life insurance policy is generally equal to its cash surrender value,
plus any accumulated investment income. The policy must be assigned to the charity, with
the charity being registered as the beneficiary. Any taxable amount resulting from the
donation will represent income to the donor, and not a capital gain.
(9) Certified cultural property is defined as property that the Canadian Cultural Property Export
Review Board has determined meets certain criteria set out in the Cultural Property Export
and Import Act. The donation of such property must be made to Canadian institutions or
public authorities that have been designated by the Minister of Canadian Heritage. Capital
gains arising on the donation of such property are not included in income. Capital losses,
however, may be deducted within specified limits.
(10) Ecological property is generally defined as land, including a covenant, an easement, or in
the case of land in Québec, a real servitude, that is certified to be ecologically sensitive,
the conservation and protection of which is considered important to the preservation
of Canada’s environmental heritage. The donation must be made to Canada, a province
or territory, a municipality, municipal or public body performing a function of Canadian
government, or a registered charity approved by the Minister of the Environment.
(11) Qualifying securities generally include publicly traded shares, shares/units of mutual funds
and certain types of debt obligations. Generally, the capital gains resulting on the donation
of such securities and the exchange of unlisted securities that are shares or partnership
interests for publicly traded securities that are later donated are not taxable provided
certain conditions are met.
Charitable Donations
© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Current as of May 3, 2013