Gifts in Kind
Real estate, rare books, art and special collections are all examples of gifts in kind, and they are an important asset to the university.
Tax benefits and capital gains tax
A donation receipt will be issued for the fair market value of the gift in kind on the date it is transferred. An independent qualified appraiser determines this value for items valued at $1,000 or more; a qualified member of Western's staff may determine the value of gifts under $1,000.
If the item you are giving to the university has increased in value since you purchased it, you may be subject to a taxable capital gain; however, the donation receipt you receive for your gift should more than offset any tax payable. You may even have additional tax credit to apply against other income.
- Donation receipt based on appraised fair market value.
- 50 per cent of capital gain may be taxable to the donor and may be offset by the tax credit.
- Amount of contribution eligible for a tax credit in any one year is 75 per cent of net income plus 25 per cent of taxable gain arising from gift.
- If a contribution exceeds the amount eligible for a tax credit in the year the gift is made, the excess credit may be carried over for up to five years.
Some gifts, such as paintings by Canadian artists, can be classified as "cultural property" and are given special tax consideration. Donations of cultural property are not subject to capital gains tax and donors can claim 100 per cent of the value of the gift in a given year up to a maximum of that year's net income.
To qualify as cultural property, the gift must be certified by the Canadian Cultural Property Export Review Board. McIntosh Gallery would be pleased to explore this option related to gifts of art to the permanent collection of the gallery. For more information, contact Janice Van Der Klugt at 519-661-4176 or 1-800-420-7519 (toll free) or firstname.lastname@example.org.
You can make a gift in kind during your lifetime or through your Will. To discuss your legacy gift planning options, contact Sheri Cole at 519 661-2111 x88856 or email@example.com.