20  /

Notes, continued

(7) In Ontario, the top tax rate of 13.16% does not apply to donations in excess of $200.  

Donations over $200 earn a tax credit at a rate of 11.16%.

New Brunswick’s tax credit rate for donations over $200 is 17.95% but the legislation has 

not yet been amended to reflect this rate.

(8) These donations include those made to the Government of Canada, a province or a 

territory, but do not include contributions to political parties. 

(9) 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.

(10) 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.

 

The 2014 federal budget introduced rules to deem the value of a gift of certified cultural 

property to be no greater than the donor’s cost of the property if it was aquired under a 

gifting arrangement that is a tax shelter.

(11) Ecological property is generally defined as land, including a covenant, an easement, or in 

the case of land in Quebec, 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. 

 

The 2014 federal budget increased the carry-forward period for donations of ecologically 

sensitive land to conservation charities to 10 years (from 5 years).

Charitable Donations

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