CRA recently released a letter which discusses whether the transfer of the custody of a fossil to a qualified donee can be considered a charitable gift. CRA concluded that this would be a question of both fact and law but there would need to be a transfer of property present.
CRA had the following comments:
"As noted above, one of the requirements for a gift is that there must be a transfer of property. The definition of "property" in subsection 248(1) of the Act is very broad and includes a right of any kind whatever. However, whether or not the custody of a fossil would be considered a right or other property is a question of law. This determination may only be made based on a review of the legal agreements, the applicable provincial legislation, and the facts of the particular situation. In this regard, you may want to consult with your legal advisor."
To read the full letter, please click here.
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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.