Gifts in Kind
A "gift in kind" is property other than cash that a donor may wish to transfer to a charity. The word "property" is highlighted because gifts of services may not be acknowledged with official receipts for income tax purposes.
When you make a gift other than cash, the receiving charity must obtain an appraisal from a qualified person to determine the gift’s fair market value. Once the value has been obtained, the charity may provide you with an official receipt. That receipt must show (in addition to the information on regular receipts)
- a description of the property,
- the exact date on which the gift was made, and
- the name and address of the appraiser.
The charity is also required to ask you whether non-cash gifts were acquired (with some exceptions as noted below) by the donor within three years before the date of gift. In situations where the property that is being given was acquired within three years, you must tell the charity what the cost of the property is for tax purposes. The receipt will then be issued for that tax cost. Even if you acquired the non-cash gift more than three years before the date of the gift, you may still be restricted to claiming a tax credit with respect to the receipt that is the tax cost of the property. That will be the case if it can reasonably be determined that you intended to make a gift of the non-cash property at the time you acquired it.
There are specific exceptions to the rules in the previous paragraph as follows:
- gifts made by bequest,
- gifts out of inventory of a business,
- gifts of land and buildings located in Canada,
- gifts of certified cultural property,
- gifts (other than to a private foundation) of publicly traded securities and certain other investments, and
- gifts of ecological property.
If you have any questions, contact us.
The purpose of CCCC Stewardship Services is not intended to replace legal and other professional advisers. The goal is to provide Christians with information based on biblical principles to enhance the stewardship of resources entrusted to them.
The CCCC Seal of Accountability indicates that a charity adheres to high standards. Look for the Seal of Accountability when making decisions about which Christian charities to support.
