Ecological gifts: guidelines for appraisers
Summary
Those who donate ecological gifts to qualified recipient organizations are eligible for tax benefits under the Income Tax Act. Ecological gifts are donations of land or partial interests in land that are certified as ecologically sensitive by the federal Minister of Environment and Climate Change. Partial interests may be in the form of conservation easements, covenants or servitudes.
Environment and Climate Change Canada (ECCC) administers the Ecological Gifts Program in partnership with various provincial governments, environmental charities and other federal government departments.
Tax benefits are determined based on the fair market value of the gift. To determine the fair market value of a gift, the donor must provide an independent appraisal to ECCC along with the donor’s Application for Appraisal Review and Determination of the Fair Market Value of an Ecological Gift. One or more qualified professionals from ECCC’s Appraisal Review Panel review the appraisal. The Chair of the Panel then recommends the fair market value to the Minister, who determines the value.
These guidelines are intended to help appraisers prepare ecological gift appraisals. They include general requirements and considerations for the valuation of all ecological gifts, regardless of their fair market value. The guidelines also provide general format requirements for appraisals.