Ecological Gifts Program

Each year, more Canadians choose to protect the land they love through the Ecological Gifts Program. Whether it's a forest, wetland, prairie or shoreline, your donation helps build a lasting network of conservation lands across the country—and comes with significant tax benefits.

Background

An ecological gift is a donation of ecologically-sensitive land, or an eligible interest or right in land, to a qualified recipient. Since this program began in 1995, more than 2000 ecological gifts valued at over $1.3 billion have been donated across Canada. These donations have protected more than 252,000 hectares of wildlife habitat, including areas designated as nationally or provincially significant. Many are home to some of Canada's species at risk.

Whether it's a woodlot, ranch, farm or other property with ecologically-sensitive areas, the Ecological Gifts Program can help protect your land for future generations. This program, made possible by the Income Tax Act of Canada and the Quebec Taxation Act, offers significant tax benefits to landowners who donate land, or a partial interest in land, to a qualified recipient. By participating, you can help protect nature and leave a lasting legacy.

Ecological Gifts: A Legacy for Tomorrow, a Tax Break Today

Eligible Donations

Any individual or corporate landowner may donate land or a partial interest in land through this program. For an official donation receipt to be issued, the donation must meet Canadian tax law requirements determined by the Canada Revenue Agency. A donation qualifies as a gift if:

• the donor transfers ownership of the property to a qualified recipient
• the transfer is voluntary
• the donor (or a person selected by the donor) does not receive any benefit in return.

The federal Minister of the Environment does not determine whether the transfer of land or of an easement, covenant or servitude qualifies as a gift for the purposes of the Income Tax Act (or the Taxation Act in Quebec). Potential donors who have questions should consult tax and legal advisors.

Tax benefits

The Income Tax Act provides tax benefits for gifts of ecologically sensitive land and partial interests in such land. The benefits of ecological gifts can be significant when the federal and provincial tax benefits are combined.

Tax benefits associated with making an ecological gift include:

• corporate donors can deduct the full amount of their ecological gift from their taxable income
• individuals (or their spouses/common-law partners) receive a non-refundable tax credit for the eligible gift amount
• the capital gain is reduced to zero (whereas for most gifts the taxable portion is 50% of the capital gain)
• donors can claim the unused portion of the donation amount for up to 10 years
• there is no limit on the total value of the ecological gifts eligible for the deduction or credit in a given year
• related provincial tax benefits may also apply.

Tax implications of donating land or an interest or right of ownership vary, potential donors should consult a tax professional for guidance. For tax-related questions, contact the Canada Revenue Agency which administers these provisions under the Income Tax Act.

For more information, refer to the Ecological Gifts Program Handbook or donation and income tax scenarios.

Donation options

Many ecological gifts are full donations of land with no conditions (sometimes called fee-simple donations). However, donating land does not necessarily mean you have to give up your connection to it. You may be able to:

• retain the right to live on or use the land
• retain ownership of your land while donating a partial interest through a conservation easement, covenant or servitude agreement.

For further information, please refer to the donation options.

Under Quebec's Taxation Act, Quebec residents may be eligible for tax benefits when donating land or a servitude on land located in a region bordering the province. For more information, please consult the Application for a Fiscal Certificate for Donation of Ecologically Sensitive Land or a Servitude with Ecological Value.

Qualified recipients

Ecological gifts can be given only to qualified recipients who will ensure that the ecologically sensitive land is preserved in perpetuity. Recipients are important program partners, often helping donors to complete the donation process.

The following recipients are eligible to receive ecological gifts:

• federal, provincial and territorial governments
• Canadian municipalities
• municipal or public bodies performing a function of government.

Charities must apply to become qualified recipients. Only charities whose primary purpose is the conservation and protection of Canada's environmental heritage are eligible to receive ecological gifts. Eligible charities, municipalities and municipal or public bodies performing a function of government must also be approved to receive each specific ecological gift.

All potential recipients of ecological gifts are encouraged to seek independent legal advice to understand their eligibility and the applicable rules around charitable receipting. While ECCC cannot provide legal advice to potential recipients, the EGP does provide information on eligibility and the process for completing ecological gifts under the Income Tax Act.

Indigenous recipients

Whether an Indigenous organization has the legal capacity to issue charitable receipts and to hold real property depends on several factors, including their constituting documents or by-laws and applicable federal and provincial legislation. Qualified Indigenous recipients could be:

•  registered charities having as one of their primary purposes the “conservation and protection of Canadas environmental heritage” (such as land trusts), or
• municipal or public bodies performing a function of government in Canada registered under the Income Tax Act.

How a charity becomes a qualified recipient

To become a qualified recipient of ecological gifts, a charity must:

• be registered with the Canada Revenue Agency
• have the conservation and protection of Canada's environmental heritage (or something similar) as a primary purpose
• complete the application package and submit it to:

  National Secretariat, Ecological Gifts Program
  Canadian Wildlife Service
  Environment and Climate Change Canada
  351 St. Joseph Blvd.
  Gatineau, QC  K1A 0H3
  Email: pde-egp (at sign) ec.gc.ca

Application package for charities

Charities must include the following in their application:

• complete contact details
• the organization's mission statement and examples of the projects it has undertaken
• the organization's charitable registration number
• a certified copy of the organization's letters patent, incorporation papers or other governing documents that include the full statement of objectives or purpose
• an expression of the organization's willingness to receive and manage ecological gifts, along with proof of its financial and human resource capacity to do so
• evidence that the organization has adopted or committed to adopting national or provincial guidelines to direct its land acquisition and management practices
• a dissolution or winding-up clause specifying that, in the case of ecological gifts, the assets will be transferred to one or more qualified Ecological Gifts Program recipients.

Applicants will receive a response within six weeks.  If the application is approved, the organization will be added to the list of environmental charities eligible to receive ecological gifts.

Recipient responsibilities

Recipients of ecological gifts are responsible for maintaining the biodiversity and environmental heritage of the property. They may also help in other ways by:

• providing an initial assessment of the property's ecological sensitivity
• arranging an appraisal of the ecological gift's fair market value
• coordinating necessary applications.

Before making any changes in use or dispositions, recipients must seek authorization from the Ecological Gifts Program office in their region.

Disposition or change in use

A federal tax of 50 per cent of the land's current fair market value may be imposed on charitable and municipal recipients if they make changes or dispose of a gift without prior written authorization from the Minister of the Environment. For further information, please refer to Disposition or change in use of Ecological Gifts: what recipients need to know.

Ecological Gifts Program process

To qualify as an ecological gift, the federal Minister of the Environment must:

• certify the property as ecologically sensitive
• approve the recipient to receive the ecological gift
• certify the fair market value of the donation.

Once this process is complete, the donor will receive :

• a Certificate for Donation of Ecologically Sensitive Land (in Quebec, Visa pour dons de terrains ou de servitudes ayant une valeur écologique)
• a Statement of Fair Market Value
• an official donation receipt from the recipient.

Donors must include all three of these documents with their income tax return.

It can take several months to arrange a donation and up to six months or longer to receive the necessary certifications. To use ecological gift tax benefits in the same year, donors should apply for a determination of fair market value as early in the year as possible (by mid-September at the latest).

Program coordinators are available to help at any stage of the Ecological Gifts Program process.

Certifying ecological sensitivity

Ecologically-sensitive lands are areas or sites that currently, or could at some point in the future, contribute significantly to the conservation of Canada’s biodiversity and environmental heritage. There is no application form for ecological sensitivity. Instead, the donor gathers the required information, often working with the recipient. The brief assessment of ecological sensitivity should demonstrate that the proposed gift meets national and if applicable, provincial criteria. For further information, please refer to Assessing ecological sensitivity.

Once all information is compiled, it is submitted to the regional coordinator for the program. For further information, please refer to Filing information on ecological sensitivity.

In Quebec, certification is carried out by the provincial Minister of the Environment. Donors who own land in Quebec should submit the application form Visa pour don de terrain ou de servitude ayant une valeur écologique.

National criteria for ecological sensitivity

When assessing ecological sensitivity, both the current environmental values of the land and those that may result from restoration are considered. The following national criteria apply:

• areas identified, designated or protected by a local, provincial, national or international system or body as ecologically significant or ecologically important
• natural spaces of significance to the environment in which they are located
• sites that have significant current ecological value, or potential for enhanced ecological value, as a result of their proximity to other significant properties
• municipal or rural lands that are zoned or designated for biodiversity objectives
• natural buffers around environmentally sensitive areas such as water bodies, streams or wetlands
• areas or sites that contribute to the maintenance of biodiversity or Canada's environmental heritage.

Please contact the program to obtain the ecological sensitivity criteria list for Ontario.

Determining fair market value

The federal Minister of the Environment must certify the fair market value of all ecological gifts. 

Once a property is certified as ecologically sensitive, the donor must submit an independent appraisal of the fair market value of the donated lands or conservation easement, covenant, or servitude. The donor must send the appraisal to the regional Ecological Gifts Program coordinator along with a signed Application for Appraisal Review and Determination. Program coordinators can also provide application forms.

Commissioning the appraisal

The donor or the recipient must commission an appraisal that follows program guidelines to estimate the fair market value of the ecological gift. The appraisal must comply with:

• The Canadian Uniform Standards of Professional Appraisal Practice or, in Quebec, Les normes de pratique professionelle des évaluateurs agréés
• All ECCC requirements outlined in the publication Ecological Gifts Program: Guidelines for Appraisals

Appraisers should review these guidelines before appraising an ecological gift. For further information, please refer to Commissioning the appraisal.

Notice of determination of fair market value

The program’s independent appraisal review panel will review the appraisal. Once this process is complete, the donor will receive a Notice of Determination of Fair Market Value of an Ecological Gift which indicates the fair market value that the federal Minister of the Environment has determined for the property. It applies to the subject property for 2 years from the notice date for all income tax purposes related to charitable gifts. In most cases, when the appraisal meets the standards outlined in the Ecological Gifts Program: Guidelines for Appraisals, the review process takes no longer than 90 days.

Once the Notice of Determination of Fair Market Value of an Ecological Gift is issued, the donor must choose one of the following options:

• accept the fair market value as determined
• request a redetermination (for further information, please refer to “The redetermination process” under Receiving a Notice of Determination of Fair Market Value of an Ecological Gift)
• withdraw the application.

Completing the donation

Once the donor accepts the determined fair market value, the donor and recipient must complete the donation by registering the land transfer or partial interest in land on title. Once proof that the donation is complete is provided, the donor will receive a Statement of Fair Market Value of an Ecological Gift Pursuant to the Income Tax Act of Canada. Acceptable proof includes one of the following:

• a copy of the registered transfer document
• documentation confirming that the easement, covenant or servitude agreement has been registered on title.

Examples of ecological gifts

Ecological gifts and the motivations behind them are as diverse as the Canadian landscape. From corporations in British Columbia donating covenants on forested land in the Gulf Islands, to communities in Atlantic Canada working together to preserve treasured coastal habitat, each donation makes a difference. What all donors share is the assurance that their cherished piece of nature will be cared for in the future.

Ontario – Donor and recipient profiles

Related links

• The Canadian Ecological Gifts Program Handbook 
• Application for Appraisal Review and Determination of an Ecological Gift
• Donations and Income Tax Scenarios 
• Engaging an Appraiser to Appraise an Ecological Gift
• Guidelines for Appraisals 
• Disposition or change in use of ecological gifts: what recipients need to know
• Retaining the Right to Use Land Donated as an Ecological Gift
• Confirmation that Ecological Gifts are Eligible for Split-receipting
• Ecological Gifts Program Brochure
• The Canadian Ecological Gifts Program: A legacy for tomorrow -- a tax break today
• Ecological Gifts Program donor and recipient profiles for Ontario
• Ecological Gifts Program donor and recipient profiles for Québec
• Ecological Gifts Program donor and recipient profiles for British Columbia

Contact us

The personal information is collected under the authority of section 5 of the Department of the Environment Act and section 118.1 of the Income Tax Act.

The information is collected, used and disclosed by ECCC for the purpose of enabling landowners to receive information and to donate ecologically sensitive lands to eligible recipients. The information collected will be used to certify your property as ecologically sensitive, confirm that the ecological gift is made to an eligible recipient, and certify the fair market value of your property.

The personal information created, held or collected by Environment and Climate Change Canada is protected under the Privacy Act. Information collected during this process will be used, disclosed and retained in accordance with the conditions listed in the Personal Information Bank Ecological Gifts Program EC PPU 141.

Any questions or comments regarding this privacy notice may be directed to ECCC’s Access to Information and Privacy Division at ECATIP-ECAIPRP@ec.gc.ca. If you are not satisfied that your privacy has been adequately respected, you have the right to file a complaint. You may contact the Office of the Privacy Commissioner of Canada by calling their information center at 1-800-282-1376 or by visiting their contact page.