The amount that the fair market value of the property gifted exceeds the amount of the advantage, if any, received by the donor with respect to the gift. The eligible amount is the amount claimed on the donor’s tax return.
The amount of benefit of any kind that is received by the donor, or person not dealing at arm’s length with the donor, has received or is entitled to receive at the time, or in the future from when the gift is made. Furthermore, at no time can the advantage exceed 80% of the total value of the gift.
Any corporate gift, or a gift of any type of property that is from an individual, that is received while the donor is alive and is readily available for use by the university.
A gift of privately held shares where the donor is at arm’s length with all directors, trustees, officers, and/or like officials of the university. A tax Receipt is issued for the value as at the date of the gift, not when it is received into the university’s account.
A gift of any type of property that results from the death of an individual or requires a specified period of time to elapse before the property is available for use by the university. Therefore, deferred gifts include interests in trusts or similar arrangements.
A gift of property that is not cash, or near cash.
Bonds, money market mutual funds, GICs, T-bills, and other short term investments that have readily available markets to convert them into cash.
Publicly Traded Securities:
Shares, warrants, rights, debt obligations that are traded on a prescribed stock exchange, shares of the capital stock of a mutual fund corporation, a unit of a mutual fund trust, or an interest in a related segregated fund trust.
Prescribed Stock Exchange:
An exchange listed in Regulation 3200 of the most recent version of the Income Tax Act of Canada. Generally speaking, any major exchange in Canada or around the world.
Gifts where an insurance policy is purchased with the university as the owner, or ownership is gifted to the university at a later date (policy assignment), or the death benefit is assigned to the university as a beneficiary. A tax Receipt may be issued for the premiums paid only when the university owns the policy. The university will not own, or accept ownership of, any life insurance policy that is not a permanent policy (Term to 100, whole life, or universal life).
Refers to the ultimate tax-free payout from the policy at the death of the insured. Death benefits can be guaranteed at an amount, or can vary over time as defined in the policy. At all times, payment to the university of the eventual death benefit ultimately destined for the university must be a certainty. In order to qualify as an eligible amount, the donor, and not the university, must own the policy.
Premiums, Life Insurance Premiums:
Cash payment that is required to fund an insurance policy. Premiums are always required for the lifetime of the insured (or to age 100). However, depending on the type of insurance policy, the premiums may be paid by the donor on a regular basis, OR after a certain number of premiums have been paid, from funds accumulated within the policy (cash value).
Net Cash Surrender Value (AKA Cash Value):
For the purposes of a gift, the amount of excess funds held within the policy – less any policy loans outstanding. Cash value normally accumulates in the early stages of a policy when the cost of insurance is less than the premiums paid. Over time, the cash surrender value may be withdrawn by the owner of the policy as policy loans, or used to fund the required premiums for as long as the cash surrender value remains in a positive balance. If the premium demand exceeds the ability of the cash value to fund it, the policy may collapse.
Situations where the owner has withdrawn some of the cash value from the policy. Policy loans are repaid under a payment schedule with interest. If the owner refuses to repay the loan, the cash value will be used to repay the loan. If the cash value expires, then the policy will lapse. Tax Receipts can be issued for repaid policy loans when they are repaid after ownership of the policy has been transferred to the university.
For the purposes of this policy, refers to property that cannot be moved. In general terms, real estate (e.g. cottages, houses, buildings, and vacant lots).
Property that is not considered to be real property (e.g. artwork, investments, machines, etc).
Includes all depreciable property and any other property (real and non-real) which if sold, would result in a capital gain or loss.
Property that is normally capital property, which is used to earn income from a business (i.e. a machine or rental property).
Personal use Property:
With the exception of Listed Personal Property (see below), the university does not readily accept personal use property. Property that is owned primarily for personal enjoyment (e.g. household items, boats, cars, furniture, etc.) Such property is normally not expected to have increased in value; hence there is no capital gain or loss for the disposal of this type of property. A tax Receipt can be issued for the fair market value and personal property is deemed to have a minimum cost and fair market value of $1,000. Thus, any disposal (including gifting) of personal use property that has a value and cost less than $1,000 is a non-taxable event for CRA.
Listed Personal Property (LPP):
A sub-set of personal use property that includes only the following assets:
The distinction between this type of property and personal use property is that LPP is expected to have gained in value. Thus disposal of it may give rise to a LPP capital gain or LPP loss. The minimum cost and fair value is $1,000 as with personal use property.
Canadian Cultural Property (Cultural Property):
Any property that has been certified by the Canadian Cultural Property Export Review Board. Gifts of Cultural Property are subject to enhanced tax benefits.
Charitable Remainder Trust (CRT):
A trust where the university is a beneficiary of the remainder interest in the trust. Such interest is paid to the university after a prescribed period of time has elapsed (including death of the income beneficiary(ies) and at no time may the capital of the trust be encroached upon by anyone.
A residual interest is part of a property that is real property (e.g. building, land) that is left to the university at some time in the future. Typically such property does not produce income for the donor.
Beneficiary (Trusts, Life Insurance Policies, Registered Funds):
The person for whose benefit the trust was created. For charitable remainder trusts, the donor is normally the income beneficiary (income interest) and the university is the capital beneficiary (remainder interest). The university may be the beneficiary of life insurance policies and hence is entitled to the death benefit. Furthermore, the university may also be named the beneficiary of RRSP or RRIF (registered funds).