Intention to Make a Gift

This module looks at the basic rules around the Intention to Make a Gift Threshold. The module answers questions on: How is it applied? Why are advantages important? Can you give me an example of applying the Intention to Make a Gift Threshold?

Introduction

This module looks at the basic rules around the Intention to Make a Gift Threshold.

The module answers questions on:

Intention to Make a Gift – The Basics

The Intention to Make a Gift threshold is applied only when a donor receives advantages (benefits) as a result of the donation.

For a gift with advantages, an official donation receipt can only be issued if the FMV of the advantages is not more than 80% of the fair market value of the gift. This is known as the Intention to Make a Gift threshold.

Definition : Fair Market Value is what a consumer would pay if the gift is bought in the open market.

Example

A donor gives $500 to Charity MNO and receives 2 complimentary concert tickets with a FMV of $150 each. So the total value of the tickets is $300.

Apply the Intention to Make a Gift threshold:

Note: Even if Charity MNO did not pay for the concert tickets, the FMV still has to be used in determining the Intention to Make a Gift threshold.

Chart

Notice

Information in this module is provided for general educational purposes and not as legal or accounting advice. Consult a lawyer or accountant for professional advice.

Information is accurate as of 2019.

For changes after this date, consult Canada Revenue Agency.

Have you used CPLEA’s resources to help you or a family member answer a legal question?

If yes, we want to hear from you! Please complete our 2-minute survey to help us understand how Albertans find and use legal information. Your experiences and opinions will help improve access to clear, useful and trustworthy legal resources.

Take the Survey
No, thanks!