ABBOZZO GALLERY
ART EMPORIUM, THE
ART PLACEMENT
BAU-XI GALLERY (TORONTO)
BAU-XI GALLERY (VANCOUVER)
BAU-XI PHOTO
BECKETT FINE ART LIMITED
CANADA HOUSE GALLERY
CANADIAN ART GALLERY
CHRISTOPHER CUTTS GALLERY
CHRISTOPHER VARLEY, ART DEALER, INC.
CORKIN GALLERY
DARRELL BELL GALLERY
DIAZ CONTEMPORARY
DOUGLAS REYNOLDS GALLERY
DOUGLAS UDELL GALLERY (EDMONTON)
DOUGLAS UDELL GALLERY (VANCOUVER)
EDWARD DAY GALLERY
ELISSA CRISTALL GALLERY
FEHELEY FINE ARTS
GALERIE D'AVIGNON
GALERIE ELCA LONDON
GALERIE ERIC KLINKHOFF, INC.
GALERIE SAMUEL LALLOUZ
GALERIE SIMON BLAIS
GALERIE ST-LAURENT + HILL
GALERIE TROIS POINTS
GALERIE VALENTIN
GALLERY 78
GALLERY GEVIK
GRANVILLE FINE ART
HARBOUR GALLERY
HERRINGER KISS GALLERY
JENNIFER KOSTUIK GALLERY
JULIE M. GALLERY
KINSMAN ROBINSON GALLERIES
LOCH GALLERY (CALGARY)
LOCH GALLERY (TORONTO)
LOCH GALLERY (WINNIPEG)
LONSDALE GALLERY
MARCIA RAFELMAN FINE ARTS
MASTERS GALLERY LTD.
MAYBERRY FINE ART (TORONTO)
MAYBERRY FINE ART (WINNIPEG)
MICHAEL GIBSON GALLERY
MIRA GODARD GALLERY
MIRIAM SHIELL FINE ART
NEWZONES GALLERY
NICHOLAS METIVIER GALLERY
NIKOLA RUKAJ GALLERY
ODON WAGNER CONTEMPORARY
ODON WAGNER GALLERY
OLGA KORPER GALLERY
PATRICK MIKHAIL GALLERY
PAUL KUHN GALLERY
PETER ROBERTSON GALLERY
PIERRE-FRANÇOIS OUELLETTE ART CONTEMPORAIN
PRIME GALLERY
P|M GALLERY
ROBERTS GALLERY
RUMI GALLERIES
SANDRA AINSLEY GALLERY
SCOTT GALLERY
SHARON LONDON LISS
STEPHEN BULGER GALLERY
STUDIO 21 FINE ART INC.
THIELSEN GALLERY
TRÉPANIERBAER
TRIAS GALLERY
UNO LANGMANN LIMITED FINE ARTS
WADDINGTON GORCE INC.
WALLACE GALLERIES LTD.
WALLACK GALLERIES
WINCHESTER GALLERIES (OAK BAY AVENUE)
WINCHESTER MODERN
WYNICK/TUCK GALLERY
ZWICKER'S GALLERY


APPRAISALS

Canadian Cultural Property 
Fair Market Value 
Information for Institutions 
Important Dates 


ADAC Appraisal Service
The ADAC offers established and professional valuations of artworks that are donated as Cultural Property of Canada. Years of experience as a liaison between institution, appraiser, and government have established the ADAC as an efficient and economical source of accurate, arm's length appraisals of fine art. The Association acts as a coordinator through the entire appraisal process. Our reputation for quality Cultural Property appraisals has made the Association the evaluating body of choice for many of Canada's institutions and collectors. Please contact the ADAC at info@ad-ac.ca

The information provided on this website is offered as a general guide to donations of Canadian Cultural property. There are three provisions through which artwork may be gifted and a formal tax receipt issued: Certified Cultural Property, Charitable Donation, and Gifts to Canada, a province or a territory. The ADAC does not appraise gifts or charitable donations, nor do we supply appraisals for insurance purposes. We can however, suggest one of our member galleries to assist with appraisals for the general public. Please contact the ADAC at info@ad-ac.ca

For further information on Canadian Cultural Property and gifting works of art, please refer to the Canada Revenue Agency's website, specifically the section dedicated to Gifts and Income Tax

If you would like a copy of the Canadian Cultural Property Export Review Board's (CCPERB) publication "Applications for Certification of Cultural Property for Income Tax Purposes - Information and Procedures", please contact the Review Board:

Telephone (819) 997-7761
Fax (819) 997-7757
Email revboard_sec@pch.gc.ca


Canadian Cultural Property
Gifts of Certified Cultural Property Through the "Cultural Property Export and Import Act" (CPEIA), the Government of Canada helps to protect the nation's heritage and ensure that our unique and diverse cultural life is preserved for all to study and enjoy. The Government provides incentives for donating art to designated institutions and public authorities in the form of significant tax reductions to the donor. The Canada Revenue Agency defines a gift as a "voluntary transfer of money or property for which the donor receives nothing of value in return." However, donors may be able to claim the Fair Market Value (FMV) of the gift as a non-refundable tax receipt as a result of the donation. (Please see section on Fair Market Value for further definitions)

Benefits
Under the "Cultural Property Export and Import Act", the amount eligible for claiming a tax credit is 100% of the current Fair Market Value of the property on the date of donation. This tax credit can be offset against the total amount of the donor's net income. If the fair market value exceeds the donor's total net income for the year, the remaining tax credit can be carried forward and claimed during the following five years. Unlike charitable donations, with certified cultural property, the donor is exempt from any capital gains resulting from the gift.

Requirements
In order to qualify for this tax credit, the artwork must be certified by the Canadian Cultural Property Export Review Board (CCPERB) as being culturally significant. The Review Board may rule that an object is significant because of its close ties with Canadian history or national life, its aesthetic qualities, its value in the study of the arts and sciences, or its degree of national importance. Cultural Property does not have to be Canadian in origin.

How to Donate Artwork as Cultural Property
The artwork must be donated to a designated institution or public authority (which includes a select number of public galleries, museums, universities and public authorities across Canada). The donor must have a signed deed of gift provided by the institution prior to December 31 of the taxation year in which the donation is made. The designated public institution or public authority receiving the gift, must apply with the donor, or on behalf of the donor, to the Review Board to have the gift certified as Cultural Property. This application must contain documentation of the work's cultural significance, and a current Fair Market Value appraisal must also be provided.

Gifts by Art Dealers
If the donor buys or sells artwork as a business, the donation of a work of art will be considered part of the donor's inventory. Therefore, according to Canada Customs and Revenue Agency, the proceeds will be considered business income based on the FMV of the gift. If the gift is from a private collection, the usual donation rules apply.


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Fair Market Value

What is Fair Market Value?
According to Canada Revenue Agency, the generally accepted meaning of Fair Market Value is the "highest price, expressed in terms of money, that the property would bring in an open and unrestricted market between a willing buyer and a willing seller who are knowledgeable, informed, and prudent, and who are acting independently of each other."

The Canadian Cultural Property Export Review Board (CCPERB) has stringent requirements for appraisals of artwork certified as cultural property. It should be noted that the appraised value reflects, but does not establish, the Fair Market Value of the work at the time of donation. Three approaches to value appraisers may take into consideration for a Cultural Property evaluation are the Sales Comparison Approach, Replacement/Production Cost Approach and Income Approach.


Who can Request a Fair Market Appraisal from ADAC?
The appraisals provided by ADAC are "arm's length" evaluations meaning that ADAC is not influenced by the expectations of the donor in assigning Fair Market Value and limits its communications to the public institution receiving the work for donation. In this process, the appraisal request can only be initiated through the institution.


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Information for Institutions

Cultural institutions need to provide the following ADAC forms in order to proceed with the appraisal process:

1) A completed "Appraisal Documentation" form detailing the information on the gifted work. The inclusion of dimensions in both centimeters and inches, provenance, as well as the names of any known dealers.
2) Signed "Fee Schedule/Letter of Agreement - Terms and Conditions" form. If required, ADAC can provide an estimate on a proposed valuation.
3) Two colour images of the work. We prefer 8" x 10" colour photocopies or photographs, but slides are acceptable. If this is not possible, please contact the ADAC office. If you are submitting an application via email please send JPEG format images (800 x 600 pixels or 11 x 8 inches, 72 dpi).
4) Condition Reports
5) Any additional information that would assist in the determination of current fair market value, such as bibliographic references, biography or Curriculum Vitae of the artist.
6) Historical significance and/or relevance of the donated item to the permanent collection (as per your CCPERB application). This will assist appraisers greatly in contextualizing the work and appraising its fair market value.

Download PDF versions of the ADAC Request forms:
Click here for an ADAC
Fee Schedule/Terms and Conditions Form

Click here for an ADAC Appraisal Documentation Form

Please note that ADAC encourages institutions to submit an application via email whenever possible; by doing so you will expedite the processing of your application.

ADAC Appraisal Request forms are available by emailing the ADAC office at amy@ad-ac.ca or by calling (416) 934-1583.
To download PDF versions, see above.



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Important Dates

2013-2014 Cultural Property Appraisal Deadlines

Please note that we ask institutions to submit appraisal applications to the ADAC about 6 weeks ahead of CCPERB deadlines (see all ADAC deadlines below). If you would like to submit an application after an ADAC deadline, please contact the office to discuss scheduling.


ADAC Deadline: Friday, August 23, 2013
for
CCPERB Deadline: Friday, October 4, 2013

ADAC Deadline: Friday, November 29, 2013
for
CCPERB Deadline: Friday, January 10, 2014

ADAC Deadline: Friday, February 28, 2014
for
CCPERB Deadline: Friday, April 11, 2014

ADAC Deadline: Friday, May 23, 2014
for
CCPERB Deadline: Friday, July 4, 2014

ADAC Deadline: Friday, August 22, 2014
for
CCPERB Deadline: Friday, October 3, 2014




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CHRIS CRAN
Ornate (Sublime Sales Series)
2004 Oil, acrylic and
silkscreen on canvas 48" x 60"
Courtesy of TrépanierBaer