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

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Current as of May 3, 2013