Cash Gifts

The simplest donation to make, a cash gift qualifies for a charitable tax receipt from the Conservatory. A donor may be either an individual or a corporation. An individual can claim a tax credit for the eligible amount of gifts for up to 75% of net income. A corporation can deduct the eligible amount of gifts from its taxable income, up to the deduction limit of 75% of net income.

The federal tax credit is 16% on the first $200 donated each year and 29% for amounts over $200. Tax savings are further increased when provincial taxes are factored in. Tax savings on charitable donations can vary from about 20% to close to 50%, depending on your income and province of residence.

To maximize the amount that qualifies for the higher 29% federal charitable tax credit, spouses may pool donation receipts and report them on one tax return. Receipts may also be carried forward for up to five years.

Corporations may deduct the value of donation receipts from up to 75% of net income. Note that if a business provides sponsorship, for which advertising or display of the business logo is provided, no charitable tax receipt may be issued.

Gifts in Kind

A gift in kind is a donation of property such as real estate, works of art, and musical instruments. A charitable tax receipt is issued based on an appraisal of the fair market value of the property.

If the value has increased since you purchased it, you may be taxed on 50% of the capital gain. However, you may increase your standard charitable donation limit by 25% of the capital gain, allowing you to claim charitable gifts valued at more than 75% of your income in the year you make the gift. If you donate depreciable capital property on which you have previously deducted a capital cost allowance, you may find the fair market value is more than the depreciated value for tax purposes. This may trigger a tax liability for the recapture of the capital cost allowance. However, you may also increase your donation limit by another 25% of the recapture in the year you make the gift.

If you have a good quality piano that is no longer needed, and would like to make a valuable contribution to the Victoria Conservatory of Music, please consider making a donation. Receipts for tax purposes will be issued for the market value of all pianos accepted.