Tax Status in the US and Canada
American Friends of Canadian Conservation is a U.S. 501(c)(3) public charity. Therefore contributions of cash and securities (stocks, bonds, mutual funds), planned gifts (such as bequests and life insurance) and gifts of land or an interest in Canadian real property (conservation easement or covenant) to American Friends are fully tax deductible in the U.S. Refer to the Donate section of this website for information about how to request that American Friends use your gift to support a Canadian land conservation organization, or how to donate your Canadian property.
In addition to being a U.S. charity, American Friends’ unique contribution to Canadian conservation resulted in it being recognized as a Prescribed Donee. This combination of preferred tax status in both countries creates the ideal tax scenario for U.S. owners of Canadian conservation property. Donating appreciated Canadian real estate to almost any other U.S. charity would trigger a capital gain in Canada, and associated Canadian capital gains tax. Similarly, transferring Canadian property to nearly all individuals or entities can lead to a tax liability. However, gifts to American Friends of Canadian Conservation are effectively not subject to Canadian capital gains tax. Save Some Green: a handbook for U.S. taxpayers who own land in Canada provides a full explanation of the key tax considerations and incentives for conservation.