Gifts in Kind
Gifts in kind are donations other than cash
to a charity. Under prescribed conditions in the Income Tax Act, a gift
in kind may qualify for an income tax receipt.
Gifts are voluntarily transferred and receive consideration for receipt
at fair market value. For example, the families often donate wheelchairs
to the foundation for use in the hospital. After an appraisal is done,
the family receives a gift in kind tax receipt for this gift.
Gifts take many forms. (From http://www.cra-arc.gc.ca/E/pub/tp/it297r2/it297r2-e.html)
Gifts in kind of a taxpayer include capital property, depreciable property,
personal-use property including listed personal property (see the current
version of IT-332), a leasehold interest, a residual interest (see the
current version of IT-226), a right of any kind whatever, a licence,
a share, a chose in action and inventory of a business. A gift in kind,
however, does not include a gift of services.
Gifts in Service
Contributing services such as time and effort is not a transfer of property
and therefore cannot be issued an official donation receipt.
