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Gifts of Property

Over the years "gifts in kind" (most gifts of real estate, rare books, art, special collections, equipment or other tangible personal property) have been an important resource to the University, enhancing the library or an academic department, or providing a valuable educational resource for our students and faculty.

Depending on your wishes and the specific type and nature of the item donated, the University may retain the gift or sell it and use the proceeds to support Western's academic mission.

Tax benefits and capital gains tax

A charitable tax receipt will be issued for the fair market value on the date the gift 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 tax 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.

Summary of tax implications:

  • Tax 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.

Cultural property

Some gifts, such as paintings by a Canadian artist, 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 staff have more than 10 years experience with Cultural Property applications and would be pleased to explore this option related to gifts of art to the permanent collection.

Create your legacy

To ensure that your particular needs are met and that your wishes are honoured, you should consult your life insurance agent and any other pertinent advisors.

You should also contact Gift Planning Office to let us know about your intentions. Not only can we assist you in making sure things move along smoothly, we also need to discuss how you would like the eventual proceeds from your insurance policy put to use. It is also important for us to know whether you wish to be recognized for your contribution or prefer to remain anonymous.

If you have made arrangements to make a planned gift to Western, we request that you send us a completed Statement of Intent (PDF) so that we may ensure proper administration of your gift.

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