Principal Changes for 2014

This page is currently being updated. Please refer to the 2017-10 version of the guide Donees Required to File an Information Return (TP-985.22.G-V).

New tax measures to encourage cultural philanthropy

To increase the number of new donors and patrons supporting arts and culture, two new non-refundable tax credits have been created:

  • the additional tax credit for a large cultural donation
  • the tax credit for cultural patronage

In addition, the eligible amount of a gift to certain donees can, under certain conditions, be increased

  • by 25% or by 50% for the gift of a public work of art
  • by 25% for the gift of a building in Québec that can house artist studios or one or more cultural organizations

These tax measures do not affect recognized political education organizations. Also, in the case of registered charities, these measures apply only to charities operating in Québec

  • in the arts or culture sector 
  • in the education sector 
  • for the benefit of the community 
Important

These measures apply to gifts made after July 3, 2013.

Large cultural donation

Where an individual (other than a trust) makes a monetary donation of at least $5,000 but not exceeding $25,000, the individual may be entitled to the additional 25% tax credit for a large cultural donation if the donation is made to:

This tax credit, which applies to the eligible amount of the donation, may be added to the tax credit for donations and gifts generally granted for this type of donation.

The donee organization may consider the following to be monetary donations:

  • cash donations 
  • donations made by cheque 
  • donations made by credit card 
  • donations made by money order 
  • donations made by wire payment 
  • donations made by electronic funds transfer 

Cultural patronage

Where an individual (other than a trust) makes a monetary donation the eligible amount of which is at least $250,000, the individual may be entitled to the tax credit for cultural patronage if the donation is made to:

This credit is equal to 30% of the eligible amount of the donation. For the purposes of the credit, the donee organization may consider the following to be monetary donations:

  • cash donations 
  • donations made by cheque 
  • donations made by credit card 
  • donations made by money order 
  • donations made by wire payment 
  • donations made by electronic funds transfer 

An individual may also be entitled to the credit by making a donation pursuant to a pledge registered with the Ministère de la Culture et des Communications. Under such a pledge, the individual undertakes to pay at least $250,000 to the same organization over a maximum period of ten years (the eligible amount of the donation for each year must be at least $25,000).

Note

The Ministère de la Culture et des Communications is responsible for ensuring compliance with the conditions for registration of pledges of cultural patronage.

Gift of a public work of art

To provide an environment in educational settings where art is promoted, a 50% increase in the eligible amount of a donation is granted to a donor that donates a public work of art to a registered charity that is a recognized educational institution having education as its mission.

To receive the 50% increase in the eligible amount of a donation, the donor must hold a certificate issued by the Ministère de la Culture et des Communications confirming that the work of art will be installed in a place accessible to students and that its conservation can be ensured.

Gift of an immovable for cultural purposes

Where a building situated in Québec that can house artist studios or one or more cultural organizations is donated, the donor may be entitled to a 25% increase in the eligible amount of the donation if the donation is made to:

To receive the 25% increase, the donor must hold

  • a certificate issued by the Ministère de la Culture et des Communications confirming the building's fair market value (based not only on the value of the building itself, but also on that of the land on which it is located)
  • a qualification certificate for the building issued by the Ministère, unless the building can house one or more cultural organizations, it was acquired by the donor for the purpose of carrying out some or all of its activities therein, and the donation is made to one of the following organizations: 

Deemed assignment of resources to charitable activities

Where a charitable organization devotes substantially all of its resources to its charitable activities and only a portion of its resources to political activities, it is deemed, under certain conditions, to also devote that portion of its resources to its charitable activities.

Henceforth, we consider that a charitable organization is also deemed to devote its resources to its charitable activities where it pays to a qualified donee an amount that is not derived from the charitable organization's income, unless the amount paid is a donation that constitutes a political activity.

New grounds for suspending the authority to issue official receipts

We may now suspend the authority of an organization to issue official receipts in any of the following circumstances:

  • The organization fails to provide the required information in its information return.
  • Where the organization is a charitable foundation, it devotes to political activities resources that are not considered to be devoted to charitable purposes.
  • Where the organization is a charitable organization it devotes to political activities resources that are not considered to be devoted to charitable activities.
Notes
  • A charitable organization is deemed to devote its resources to charitable activities where
    • it carries on a related business;
    • the gifts it makes to qualified donees, excluding gifts that constitute a political activity, do not exceed 50% of the value of its income for the year; or
    • it makes gifts to an associated charity, excluding gifts that constitute a political activity.
  • Where a charitable organization devotes substantially all its resources to charitable activities and only a portion of its resources to political activities, it is deemed to also devote that portion of its resources to its charitable activities, provided those political activities
    • are incidental to its charitable activities; and
    • do not include activities directly or indirectly supporting or opposing any political party or candidate for public office.
  • Where a charitable foundation engages in political activities, they must be incidental and non-partisan in nature. Thus, if a charitable foundation devotes substantially all of its resources to its charitable purposes and devotes only a portion of those resources to political activities, it is deemed to also devote that portion of its resources to its charitable purposes, provided those political activities 
    • are incidental to its charitable purposes; and
    • do not include activities directly or indirectly supporting or opposing any political party or candidate for public office.

Information concerning the directors and other officers of the organization

To better protect the assets of qualified donees against the risk of abuse, additional information must now be provided concerning the directors and other officers of the organization. If any of these persons is recognized as an ineligible individual, we may

Click Directors for instructions on how to complete the Information Return for Registered Charities and Other Donees (form TP-985.22-V).

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