Tax Credit Receipts & Appraisals Policy
Appraisals Policy Receipts for tax purposes are issued for financial contributions and for most gifts in kind which are added to the Library's collections, provided the donor requests a tax receipt in a Deed of Agreement at the time the donation is made. Tax credit receipts will not be issued for gifts in kind unless they are accompanied by a dated Deed of Agreement signed by the donor and a Library staff member. Nor will tax credit receipts be issued for gifts in kind in instances where the assessed value of accepted donated items is less than $200. Receipts for financial contributions are coordinated with Alumni Affairs and Development. All tax credit receipts are issued by Alumni Affairs and Development.
Under Revenue Canada statutes, the value of donated items must be assessed through an appraisal before tax credit receipts can be issued. Only those items which are actually added to the University Library collection are appraised for tax purposes. Library staff will not provide preliminary valuation estimates and will not honour external estimates when receiving gifts. While the Library may accept donated items which were originally purchased on a research grant, tax credit receipts will not be issued for such gifts.
In some circumstances, appraisals must be done externally. An external appraisal is required by statute whenever a gift item is valued at $1000 or more. The University Library may also require an external appraisal in other circumstances, such as when it appears that the appraisal will require specific expertise. The University Library reserves the right to reject an appraisal from an external appraiser whom it judges to be unqualified.
When donated items which are added to the collection are worth less than $1000 and greater than $200, the University Library normally carries out an in-house appraisal if the donor requests a receipt for income tax purposes. In accordance with standard North American practice, appraisals are based on the fair market value of the items, as determined from current standard in-print or out-of-print prices for items in comparable physical condition. Appraisals which are made in foreign currencies will be valued in Canadian dollars according to the exchange rate in effect on the date of the signed deed of gift.
The initial appraisal, either external or in-house, of donated items which are added to the collection is the responsibility of the Library. The University Library will help to arrange a subsequent external appraisal at the request of the donor, but the cost of that appraisal is normally the responsibility of the donor.
The University Library makes every effort to complete appraisals for tax purposes in time for April filing deadlines. Because appraisals take time, however, the University Library cannot guarantee to meet this deadline when donations are made in the last quarter of the calendar year.
Telephone enquiries concerning gifts may be referred to the Collection Development Division: (709) 864-7421 or (709) 864-3214.
Policy Revised October 23, 2009