If a person (the donor) transfers a property to a trust and it is evident that an organization will eventually hold full ownership of the property, we consider that the organization received from the donor a capital interest in the trust. The organization can then issue an official receipt in the name of the donor.

The organization must meet the requirements regarding receipts for non-qualifying securities if it is a private foundation that is considered to have received, after March 18, 2007, a gift of a capital interest in a trust in the circumstances mentioned in the preceding paragraph, further to a transfer of non-qualifying securities by a donor that is a person affiliated with the trust.

Value of the gift

In general, the value of a gift of an interest in a trust is equal to the fair market value (FMV) of the property at the time of the gift. However, other factors must be taken into account to assess the value of the gift, for example:

• the amount of the advantage granted to the donor or a person not dealing at arm's length with the donor if the organization granted such an advantage;
• the duration of the usufruct or right of use, if the gift is bare ownership of a cultural property or of a work of art.