What is the eligible amount of my gift?

In most cases, the eligible amount of your gift is the amount shown on your charitable donation receipt.

However, in more technical terms, the eligible amount of the gift is, under proposed changes, the amount by which the fair market value of the gifted property exceeds the amount of an advantage, if any, received or receivable for the gift.

Under proposed changes, the advantage is generally the total value of any property, service, compensation, use or any other benefit that you are entitled to as partial consideration for, or in gratitude for, the gift. The advantage may be contingent or receivable in the future, either to you or a person or partnership not dealing at arm's length with you. Under proposed changes, the advantage also includes any limited-recourse debt in respect of the gift at the time it was made.

Example
You donate $1,000 to the Anytown Ballet Company, which is a registered charity. In gratitude, the company provides you with three tickets to a show that are valued at $150. You are therefore considered to have received an advantage of $150. The eligible amount of the gift is $850 ($1,000 - $150).

Under proposed changes, there are situations in which the eligible amount may be deemed to be nil. For more information, see the section called "Deemed fair market value" in Pamphlet P113, Gifts and Income Tax.

Forms and publications

• General Income Tax and Benefit Guide
• Pamphlet P113, Gifts and Income Tax