Gifts of qualified property
Donees not qualifying for any tax benefit related to gifts of qualified property (also referred to as “ecological gifts”)
In general, the donation of qualified property to a qualified donee (such as a registered charity one of whose primary missions is the conservation of Québec's ecological heritage) can entitle the donor to a tax benefit (either a tax deduction or a tax credit, depending on whether the donor is a corporation or an individual).
However, since March 22, 2017, a registered charity that is a private foundation is no longer considered a qualified donee for the purposes of any tax benefit related to gifts of qualified property. Therefore, any gift to a private foundation after March 21, 2017, no longer entitles the donor to a tax benefit.
New qualified property
Since March 22, 2017, to increase the number of gifts of qualified property in Québec, personal servitudes running for at least 100 years and encumbering land in Québec can be considered qualified property. Gifts of these servitudes made on or after March 22, 2017, can therefore give entitlement to a tax benefit if the donor is an individual or a corporation.
Determining the fair market value of certified cultural property
The fair market value (FMV) of a gift of certified cultural property acquired as part of a gifting arrangement that is also a tax shelter is now determined in the same way as the FMV of any other property acquired under such an arrangement. Thus, if the donor acquired the certified cultural property under a gifting arrangement that is also a tax shelter, and if the property was donated after February 10, 2014, the FMV of the gift is deemed to correspond to the lesser of the following amounts:
- the FMV of the property at the time of the donation;
- the cost of the property for the donor.
For more information, see Value of a Gift of Certified Cultural Property.
Investments in a limited partnership by a registered charity
Subject to certain conditions, a registered charity can invest in a limited partnership without being considered to be carrying on a business. This applies to investments in a limited partnership made or acquired after April 20, 2015.
For more information, see Investments in a Limited Partnership by a Registered Charity.
Simplified registration procedure for charities
Since January 1, 2016, any charity (a charitable organization, a public foundation or a private foundation) that is registered under federal legislation is also deemed to be registered under Québec legislation. Consequently, a charity that is registered with the Canada Revenue Agency (CRA) on or after January 1, 2016, no longer has to send us, within 30 days following confirmation of registration, a certified copy of the supporting documents filed with its application for registration or reasonable proof of registration.
Note that we reserve the right to refuse, cancel or revoke a registration or modify a designation. In addition, donations made before January 1, 2016, to a registered charity under federal tax legislation are deemed to have been made to a registered charity under Québec legislation, unless, at the time of the donation, the charity's registration was not valid because we had refused, cancelled or revoked its registration.