Inform potential land or conservation agreement donors who may claim a provincial or federal income tax deduction or credit, in writing and early in project discussions, of the following:
Canada Revenue Agency strongly recommends an independent appraisal prepared by a qualified appraiser for gifts of property valued at more than $1,000, including information on the timing of the appraisal
As the beneficiary of the tax receipt, the donor has the primary responsibility for any determination of the value of the donation (even in the case where the appraisal has been arranged for or commissioned by the land trust)
An independent appraiser who is certified by the Appraisal Institute of Canada and who follows the Canadian Uniform Standards of Professional Appraisal Practice should perform the appraisal, or, in Québec, Les normes de pratique professionnelle des évaluateurs agréés (Les normes de pratique)
The land trust requires a copy of the completed appraisal in order to issue a charitable donation receipt
The land trust will not participate in projects where it has significant concerns about the potential for false receipting, tax avoidance, tax abuse or tax fraud
Where appropriate, inform potential donors about the Ecological Gifts Program including:
The increased tax benefits associated with making a gift under the program
The consequences of unauthorized disposition or change in land use of ecological gifts
That appraisals of ecological gifts must comply with the Ecological Gifts Program Guidelines for Appraisals and will be reviewed independently by the Appraisal Review Panel
Do not make assurances as to:
Individualized legal or tax implications
Whether a particular land or conservation agreement donation will be eligible for a donation tax deduction or credit
What monetary value of the donation the Canada Revenue Agency and/or province will accept
What the resulting tax benefits of the deduction or credit will be, if any