[BCMA] Question re high value Donation

[Moderated BCMA subscriber listserv]

Hi Tammy,


Take a look at the appraisal: the appraiser must follow the Uniform Standards of Professional Appraisal Practice (USPAP), or similar, and should state it in their report. The appraiser should also provide their qualifications in the report. Here's some info from CRA about appraisals.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p113/p113-gifts-income-tax.html


There's also the Canadian Cultural Property Export Review Board standards that can be used as a guideline for what to expect in an appraisal. This would be excessive for your purposes but it will give you an understanding of what the appraiser should do.

https://ccperb-cceebc.gc.ca/en/certification-of-cultural-property/appraisals.html


If you have concerns about the evaluation you can always reach out to the appraiser to ask about anything they have not included.


To make the appraisal truly independent the donor does not have contact with the appraiser.

The organization can arrange the appraisals and pay for it directly. (If your organzation cannot afford the appraisal you can make it a condition of the donation that the donor make a cash donation for the cost of the appraisal. This cash donation would also eligible for a tax receipt.)


You must hold onto the appraisal and other paperwork of the donation for a minimum of 7 years.

If you are concerned that the CRA will come back to the organization and question the tax receipts being issued you will need to show this to them to prove that everything was above board.


Good luck

Teresa



Teresa Sudeyko (she/her)
Registrar

MORRIS AND HELEN BELKIN ART GALLERY
belkin.ubc.ca

Morris and Helen Belkin Art Gallery
The University of British Columbia | xʷməθkʷəy̍əm | Musqueam Territory
1825 Main Mall, Vancouver, BC Canada V6T 1Z2
Phone 604 822 3069 | Fax 604 822 6689
teresa.sudeyko at ubc.ca
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Sent: Wednesday, November 6, 2024 11:15:51 AM
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Subject: [BCMA] Question re high value Donation

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Hello Everyone,

I work in a tiny museum in a remote area. We don’t typically receive large donations of artifacts so I need some advice.

A couple of years ago, I had a significant donation of artifacts from a tin collector. He supplied a signed appraisal and requested a tax receipt. We were excited to add the items to the collection but we noticed the valuation of items was quite high and often considerably high compared to other items we could find online.

This year he contacted us again to offer more items. The valuation is over $25,000. It has the required appraisal. My new Board of Directors is concerned about accepting the donation because of the need to write a tax receipt for that amount.

Is there need for their concern? I have been asked to find out if writing a tax receipt for that amount impacts the organization in any way.

Thank you in advance for your help with this matter. You can email jbfletcherstore at gmail.com<mailto:jbfletcherstore at gmail.com> if you have any insight to share.

Tammy

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