Making the Donation
It's a simple process
The landowner discusses donating his or her land, or an interest
in the land, with a potential recipient, such as a land trust, Conservation
Authority, crown agency, municipality or other qualified conservation
charity. If the landowner decides to donate, Environment Canada
then certifies the ecological sensitivity of the donor's land and
the value of the donation. In the case of charitable organizations,
Environment Canada also certifies whether the recipient charity
can receive an ecological gift. Many groups are already on the government's
list of eligible charities.
Environment Canada's certification of the donation offers donors
the confidence of knowing that the gift is going to a qualified
recipient and that the donation value for tax purposes has been
reviewed and certified by the Minister of the Environment. This
certification, when combined with a properly issued donation receipt
from the gift's recipient, is then used to claim income tax benefits.
Please note that the tax benefits of making an Ecological Gift will vary with each donor's circumstances - all donors should seek independent income tax advice.
How is a donation certified as an ecological gift?
Donors can directly apply to have their own land donations certified.
However, most rely on the recipient to manage this process and act
on their behalf. Either way, the first step for donors is to contact
a potential recipient (see the government's
list of eligible charities).
Recipients: For a detailed description of the process, see the
Ontario Ecogifts Handbook 2005.
Certification steps:
- Environment Canada certifies that the land is ecologically sensitive, following the provision of basic information (one or two pages) about the property by either the recipient or donor
- Environment Canada certifies that the recipient is qualified
- Environment Canada provides a Statement of Fair Market Value for the donation, following the review of an application and independent value appraisal
Independent financial advice is strongly advised for all donors. Individuals may also wish to retain a lawyer to handle land transfer and donation matters.
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