Value of a Gift of a Public Work of Art or a Building for Cultural Purposes
When a donor makes a gift of a public work of art or a building for cultural purposes, the donor must submit a written request to the Ministère de la Culture et des Communications to determine the fair market value (FMV) of the work of art or building, unless the proposed gift is cultural property. The Ministère will then transmit to the organization a copy of the certificate indicating the FMV, unless the donee has filed a contestation with the Court of Québec concerning the FMV.
The FMV of the gift as certified by the Ministère de la Culture et des Communications or determined by a court, as the case may be, will be deemed equal, for the organization, to the FMV of the work of art or building at the time the gift was made. If the gift is of bare ownership of a public work of art, the organization must calculate the value of the gift on the basis of the duration of the usufruct or the right of use.
Where a registered charity that is a recognized educational institution receives a gift of a public work of art, it can issue an official receipt to a donor when it receives the gift, even if it has not disposed of the work of art by December 31 of the fifth calendar year following the year in which the gift was received.
Increase in eligible amount
The eligible amount of a gift of a public work of art can be increased by 50% if the donor has a certificate issued by the Minister of Culture and Communications confirming that the work of art will be installed in a place accessible to students and that its conservation can be ensured.
The eligible amount for a gift of a building for cultural purposes located in Québec that can house artist studios or cultural organizations can be increased by 25% if the gift is made to one of the following donees:
- a Québec municipality;
- a municipal or public body performing a function of government in Québec;
- a registered charity operating in Québec for the benefit of the community, such as the Société d'habitation et de développement de Montréal;
- a registered charity operating in the arts or culture sector in Québec;
- a registered cultural or communications organization;
- a registered museum.
To receive this increase, the donor must have a certificate issued by the Ministère de la Culture et des Communications confirming the building's FMV based not only on the value of the building itself, but also on that of the land on which it is located. The donor must also have a qualification certificate for the building issued by the Ministère, unless the building can be used to house cultural organizations, the gift is donated to a registered charity operating in the arts or culture sector in Québec, a registered cultural or communications organization or a registered museum, and the donor acquired the building to carry out some or all of its activities there.