Since 1995, Canada’s Ecological Gifts Program has helped
donors and recipients of land ensure that their legacy is protected
in perpetuity by certifying land donations as ecological gifts.
Private and corporate landowners who donate a conservation easement
or full title to their land through the program can receive a donation
receipt for the value of the gift which can be used against 100
per cent of their annual income. The unused portion of this receipt
can be carried forward up to five subsequent years. And only 25
per cent of the value of capital gains is included in the donor’s
taxable income.
The process is simple. In Ontario, Environment Canada certifies
the ecological sensitivity of the land donation, the fair market
value of the donation and that the recipient of the land donation
is qualified. The donation is then considered an ecological gift
or “ecogift” under the Income Tax Act
and qualifies for the benefits noted above.
With the donation certified as an ecological gift, the donor knows
the land is going to a qualified recipient, and can be confident
that the donation value for tax purposes has been reviewed and certified
by the federal government.
| |
 |
Please note: The
tax benefits of making an ecological gift will vary with each
donor’s circumstances. All donors should seek independent
income tax advice. |
Who receives the land?
The donor can choose to donate land, or an interest in land –
such as a conservation easement – to the Crown, an incorporated
municipality or qualified charitable conservation organization.
Most donations in Ontario are received by non-government organizations
such as local land trusts, Conservation Authorities, and national
or provincial conservation groups. There are approximately 60 such
listed organizations in Ontario. Contact the Ontario Ecological
Gifts office for the list or visit the Web site at: www.on.ec.gc.ca/ecogifts.
If potential donors wish to give an ecogift to an unlisted group,
then that group must write to Environment Canada to request eligibility.
Land donations to the Crown can be made to agencies such as Parks
Canada, Canadian Wildlife Service, Ontario Heritage Foundation and
the Ontario Ministry of Natural Resources.
Lands that qualify as ecogifts
 A
wide range of land qualifies. If the wildlife, woods, wetlands,
prairie, or shoreline habitat on a property have been conserved
in a natural state, or there is great potential to rehabilitate
such features, then the landowner should consider contacting a potential
recipient or Environment Canada. A list of the types of land that
qualify is available from the Ecological Gifts office and Web site.
The land must meet at least one of 30 criteria established for Ontario
and the donation must protect the natural features of the land,
including those that meet the criteria. Criteria vary from lands
designated nationally or provincially significant to areas providing
local wildlife habitat or an ecological link in the landscape.
Donation options – putting control in donors'
hands
The conservation options now
available – title donation,
conservation easements, and
covenants – mean individuals or
corporations can make
donations that suit both donor
and recipient needs and give
both some control. Making a donation of property does not
necessarily mean severing the
connection donors and their
families have with the land. In
some cases, a donor may arrange
an agreement to continue to live
on the donated land. And, in
the case of conservation
easements, the donor retains
ownership of the property.
| |
The Ecological Gifts Program
Canadians Donating Ecologically Sensitive
Land
Much of Ontario’s natural heritage has been protected
through the stewardship and resolve of private and corporate
landowners. The Ecological Gifts Program recognizes this contribution.
In Ontario, the program provides information and guidance
regarding how to make ecological gifts – certified donations
of land that will be protected in perpetuity.
- Nearly half of the ecological gifts
made in Ontario protect species that are endangered, vulnerable
or of special concern.
- Over half of Ontario ecogifts contain
wetland habitat, including Great Lakes coastal wetlands.
- Ontario ecogifts contain a wide range
of imperiled and rare habitats, such as prairies, alvars,
cliff ecosystems, dunes and older growth woodlands.
- The estimated value of Ontario ecogifts
to date is over $25 million.
|
The process
 Donating
land and certifying the donation as an ecogift are two separate
processes that usually occur concurrently. The donation may be certified
as an ecogift after it has been made but typically the certification
process starts when the landowner begins the donation process. While
there are specific guidelines for items such as the appraisal of
a donation’s fair market value, information required by Environment
Canada is usually the same information required by the recipient
for the donation.
Paperwork and cost
The donor may apply for certification directly, but usually the
recipient prepares all required documentation on behalf of the donor.
There is no fee to certify land as an ecogift, but there are costs
related to donating land and to certifying its ecological significance
and donation value, such as surveys, appraisals and legal costs.
Deciding who pays may be a matter of policy for the recipient or
may be negotiable.
| |
Donation options outside the Ecological Gifts Program
Uncertified land may be donated and a charitable donation
receipt may be issued. The donation would be treated as a
gift of capital property and would not qualify for the same
income tax benefits.
|
Easy steps
1 Contact a recipient and describe
the land, discuss conservation goals and review land securement
options.
2 Obtain independent financial and legal
advice regarding the implications of a donation. Donors should retain
a lawyer to handle any land transfer matters.
3 Initiate the donation process with
the recipient.
4 Send information to Environment Canada
to determine if the land is ecologically sensitive. A Certificate
for Donation of Ecologically Sensitive Land is issued.
5 Submit three original copies of an
appraisal of the fair market value of the donation along with a
signed Application for Appraisal Review and Determination.
The appraiser should follow the program’s most recent Guidelines
for Appraisals. Once reviewed, donors receive notice of Environment
Canada’s determination of the fair market value of the gift.
When the donation transaction is complete the donor receives a
Statement of Fair Market Value from Environment
Canada and a donation receipt from the recipient. These items, combined
with the Certificate for Donation of Ecologically
Sensitive Land, will allow the donor to claim any associated
full tax benefits. Ecological Gifts Program staff are available
to help at any time before or during the process. Enjoy the benefits
of the Ecological Gifts Program and join other Canadians safeguarding
the future of our country’s rich natural heritage.
Talk to us about ecogifts or land donation options
 Ecological
Gifts Program
Canadian Wildlife Service
Environment Canada
Ontario Region
4905 Dufferin Street
Downsview, ON M3H 5T4
Tel: (416) 739-4286
Email: Ecogifts.Ontario@ec.gc.ca
Visit the national ecogifts Web site for more detailed information
about the Ecological Gifts Program and links to other references.
Web site: www.cws-scf.ec.gc.ca/ecogifts
Taxes: General
Canada Customs and Revenue Agency (CCRA)
Tel: 1-800-267-2384
Web site: www.ccra-adrc.gc.ca
CCRA. 2002. Gifts and Income Tax. Canada Customs and Revenue Agency.
(P113) To access this publication, contact CCRA or view on-line:
www.ccra-adrc.gc.ca/formspubs/menu-e.html
Property tax
Conservation Land Tax Incentive Program (CLTIP) Ontario
Web site: www.mnr.gov.on.ca/mnr/cltip/about.html
*
Managed Forest Tax Incentive Program (MFTIP)
Web site: http://ontariosforests.mnr.gov.on.ca/mftip.cfm?lang=EN
*
Click
here for printable PDF Version
|
