2017 Federal Budget - Charities and Non-Profit Organizations

Insights
| 3/23/2017

Ecological Gifts Program

The Budget proposes the following measures to protect gifts of ecologically sensitive property made after March 21, 2017:

  • The 50 per cent tax which applies where the use of ecologically sensitive land is changed, or the property is disposed of, without the consent of Environment and Climate Change Canada (ECCC), will be extended to situations where the land is transferred between organizations for consideration and the transferee changes the use of the property or disposes of it without the consent of ECCC.
  • The requirement for ECCC to approve recipients of ecological gifts will be extended, on a gift-by-gift basis, to municipalities and municipal and public bodies performing a function of government.
  • Private foundations are no longer permitted to receive ecogifts.
  • The donation of personal servitudes will qualify as ecological gifts, provided certain conditions are met (e.g., the servitude must run for at least 100 years).

Gifts of Medicine

The additional corporate deduction for gifts of medicine from their inventory is eliminated for such gifts made after March 21, 2017.

First-Time Donor’s Super Credit

The Budget confirms the expiration of the First-Time Donor’s Super Credit, as planned, after 2017.

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