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Overview
A gift in kind usually refers to property such as shares, artwork, equipment and real estate. It does not include a gift of services. When you donate a gift in kind, the tax credit you receive for your donation is based on the fair market value of the gift. You are deemed to have disposed of the property at its fair market value when you make the donation. Any capital gain or income as a result of the disposition must be reported on your tax return.

Donating Shares
The government provides an incentive for individuals to donate publicly-traded shares to registered charities and other qualified donees. There is no capital gains tax on donations of publicly listed securities that are gifted to charities. For gifts of capital property other than publicly-traded shares, you can increase the standard donation limit of 75% of net income by adding to it 25% of the taxable gain resulting from the gift.

Ecological and Canadian Cultural Property Gifts
The government also encourages gifts of certified Canadian cultural property and donations of ecologically sensitive lands. The donation limit for either type of gift is 100% of net income instead of the standard 75%. In addition, no tax has to be paid on capital gains arising from a cultural property gift.

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