The Committee on Taxation Incentives for the Arts considers the Cultural Gifts donations. The Committee examines the paperwork relating to the donation and determines whether there is adequate and appropriate justification for the amount of the valuation. If the Committee accepts the valuations, then the average of the two valuations is the monetary amount which can be claimed as a tax deduction by the donor. The donation is claimed in the financial year of the donation, or the value of the donation can be spread over two to five years.
While there could be a significant difference in the value placed on the materials by the two valuers, this has been extremely rare at the National Centre. If this should happen, the National Centre would engage a third valuer.
The donors are not required to approve the valuations. However, the National Centre does inform donors of the average of the two valuations before submitting these to the Cultural Gifts Program. If the donor is concerned with the valuations, another valuation can be arranged, although additional costs and delays would be encountered.
Posted by: NCACL | Published: 14 Jun 2023