A gift in kind is a donation of goods or service rather than money. Some examples of a gift in kind include:
Prize donation for events
Gifts in kind help the Alzheimer Society of Simcoe County by enhancing events, reducing necessary expenses and contributing to the Society’s assets.
Not all gifts in kind are eligible for a charitable tax receipt as directed by the Canadian Revenue Agency. When receiving a gift in kind, the Society’s policy is as follows:
Prize Donations: Tax receipts for prize donations will only be given at the specific request of the donor. Documentation indicating the fair market value of the item must be provided by the donor.
Donation of Gift cards/certificates: Tax receipts will not be given for the donation of gift cards and gift certificates; however, the Society will provide a letter of acknowledgment.
Donation of Services: Tax receipts will not be issued for donations of services; however, it is acceptable for a person who has been paid by the Society for services rendered to then make a donation for which a receipt shall be issued.
For gifts of property, the Society will follow the following procedure:
The Society shall accept gifts of property only with the approval of the Executive Director.
An official income tax receipt shall be issued for gifts of property only up to the fair market value of the goods donated. If the fair market value of an item can be reasonably determined and is less than $1,000, a staff member with sufficient knowledge of the item can determine its value. If the fair market value of an item cannot be reasonably determined, an official donation receipt cannot be issued.
All gifts-in-kind with a fair market value in excess of $1,000 shall be accompanied by a credible valuation report prepared by a professional appraiser that states the fair market value. If the gift-in-kind is not accompanied by a credible valuation report, the donor shall be advised about this Gifts-in-Kind policy and that it is their responsibility to secure an appraisal from an independent professional appraiser.
Official income tax receipts for gifts-in-kind shall be issued in accordance with CRA requirements for official donation receipts.
Appraisal of Gifts is the professional evaluation of gifts-in-kind by a qualified appraiser to establish the fair market value for the issuance of tax receipts.
Fair Market Value generally means the highest price, expressed in dollars, that a property would bring in an open and unrestricted market, between a willing buyer and a willing seller who are knowledgeable, informed, and prudent, and who are acting independently of each other.