D18. What are the general principles on receipting gifts of certified cultural property?
Short answerLong answer
Certified cultural property is property that has been determined by the Canadian Cultural Property Export Review Board to be of “outstanding significance and national importance” to Canada. The Review Board issues tax certificates for the fair market value of such items. Certified cultural property can include, among other examples:
- archival material
- decorative arts
- musical instruments
- military objects
- technological objects
Special incentives have been created to encourage Canadians to keep in Canada cultural property that is of outstanding significance and national importance. Under the Cultural Property Export and Import Act, people can donate this type of property to Canadian institutions and public authorities that have been designated by the Minister of Canadian Heritage. You can find a list of institutions and authorities designated by the Minister of Canadian Heritage here
The eligible amount of the gift is calculated based on the fair market value of the property, as of the date the donor legally transferred ownership.
The fair market value of the donated property, as determined by the Canadian Cultural Property Export Review Board, applies for a 24-month period. When that 24-month period lapses, the fair market value is re-determined and the new value holds for the following 24 months. When a donor makes a gift of the property, it is the last determined or re-determined fair market value that is used to calculate the eligible amount of the gift.
As this is another complex area, charities receiving gifts of certified cultural property will benefit from professional help in sorting out related issues.