Cultural Property Grants and Loans

Two of the major provisions of the Cultural Property Export and Import Act are the regulation of the export of certain classes of cultural property, and the availability of funds to assist designated institutions to purchase objects for which export permits have been denied, or which are located outside Canada and are related to the national heritage.

Eligibility

Cultural property grants and loans can be awarded to institutions or public authorities in Canada that have been "designated" by the Minister of Canadian Heritage. Institutions that are not already designated may submit an application for designation with their application for a cultural property grant or loan. For more information on the requirements for designation, refer to the booklet entitled Designation of Institutions and Public Authorities, available from the Movable Cultural Property Program.

Criteria

Pursuant to Section 35 of the Cultural Property Export and Import Act:

The Minister may, out of moneys appropriated by Parliament for such purposes, make grants and loans to institutions and public authorities in Canada for the purchase of objects in respect of which export permits have been refused under the Act or for the purchase of cultural property situated outside Canada that is related to the national heritage.

Objects located within Canada

Grants and loans are available to assist designated institutions and public authorities to purchase objects located in Canada only if the cultural property in question is the subject of an application for a cultural property export permit that has been refused by an expert examiner. The refusal must, furthermore, have been upheld by the Canadian Cultural Property Export Review Board following an appeal hearing. At this point, the cultural property in question will be the subject of a delay period created by the Board of between two and six months and the appropriate designated institutions will have been notified of the availability of the object for purchase.

Objects located outside Canada

Funds are also available to purchase cultural property that has been lost to Canada prior to September 6, 1977, when the Act was passed. Objects eligible for repatriation grants are usually those that originated in Canada and were exported prior to the enactment of the control system.

Objects originating elsewhere, but having been in Canada for a significant period, may also be eligible. It must, however, be demonstrated that the object was, at some time, a significant part of the national heritage. In rare cases, objects that have never been in Canada may be eligible for a grant. Such objects must, of course, have a strong association with Canadian history. It must be demonstrated that, if they are acquired by a Canadian institution, they will become an important element of the national heritage.

The export control system does not affect objects that are less than fifty (50) years old or made by persons who are still living. Since there is no restriction on the export of such objects, grants are not normally available for their repatriation. Occasional exceptions may be made to the fifty-year age limit if strong evidence of the object's rarity and importance is provided.

Whenever the repatriation of an object is proposed, it must be demonstrated to be of "outstanding significance and national importance" to Canada. Since rarity is an important element of significance, applicants are expected to have established the presence of related objects in Canadian institutions and on the market in this country. It must be shown that such objects are not available in Canada and that their addition will enrich our public collections. A description of the applicant's research on this subject should be included with the grant application.

Funding

Before a cultural property grant will be approved, the applicant must provide satisfactory evidence that the proposed purchase price is reasonable. Comparisons should be made, for example, with prices realized at recent public sales of related objects.

Private Sales: In the case of a purchase from a private individual or a dealer, the institution should ensure that the lowest possible price has been negotiated.

Auction Sales: If a grant is being requested to facilitate a purchase at auction, the estimated purchase price should be justified in terms of the published pre-sale estimate and any available information about other recent sales of comparable objects. If the Review Board recommends the grant, it would do so for an amount up to and not exceeding the amount requested in the application. If the object is successfully purchased, the institution will be obliged to pay the contribution amount indicated in the application, regardless of the selling price.

Once a reasonable purchase price has been established, the applicant should raise as much money as possible from other sources before applying for a cultural property grant. The Review Board normally requires that the requesting institution or public authority contribute at least 50% towards the purchase price. The actual percentage of the cost of the object that can be covered by the grant, however, varies depending on the circumstances of each individual case. Funding should therefore be sought from other levels of government and private subscription.

All institutions interested in repatriating cultural objects with the assistance of cultural property grants are expected to become familiar with the appropriate sectors of the international market.

Loans

A small amount of money is also available for loans under the Cultural Property Export and Import Act. Institutions that are unable to raise a contribution toward the purchase price from other sources may wish to consider applying for a loan to assist in the purchase of the object or collection.

Applications

Grant applications are first considered by the Canadian Cultural Property Export Review Board, which then recommends to the Minister of Canadian Heritage that the grant be approved. The Review Board meets five times each year, but does not always convene a meeting to consider requests for grants. Applicants may therefore forward grant applications at any time without waiting for the deadline for submission of material for a regularly scheduled Board meeting.

Application forms for cultural property grants and loans may be obtained from:
Movable Cultural Property Program

For further information, please click here to contact Review Board Secretariat.