How the program works

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Each donation to the Cultural Gifts Program involves a participating recipient institution, at least two approved valuers, the donor and the Committee on Taxation Incentives for the Arts.

In summary the usual steps for a Cultural Gifts Program donation are:

Step One

Donor negotiates a potential gift with a recipient institution

Step Two

Institution determines that the gift conforms with its collection policy and formally accepts the gift into its permanent collection

Step Three

Institution and/or donor arranges two valuations from approved valuers

Valuations should be done within 90 days of the date of donation so they reflect the current market value

Step Four

Institution submits the following documentation to the program's Secretariat by the advertised closing date for assessment:

  • Checklist for Institutions - to be completed by the institution
  • Certificate of Donation – to be completed by the donor and the institution
  • Donation Summary/Statement of Significance - to be completed by the institution
  • Two completed Valuation Certificates from approved valuers
  • Quality colour images of the item(s) except for printed, manuscript, library and archival materials

Original and two collated copies of all documents are required

Step Five

Committee assesses the donation and, if necessary, requests further information

Step Six

Where the committee has requested further information and:

  • that information is received, the committee will assess the information and either:
  1. where the committee is satisfied that the average of the valuations represents the GST inclusive market value of the donation on the day it was made – accept that the donation complies with the program requirements; or
  2. where the committee is not satisfied that the average of the valuations represents the GST inclusive market value of the donation on the day it was made – forward the donation to the Commissioner of Taxation for determination; or
  • the valuer declines to provide the information requested, and the committee is not satisfied that the average of the valuations represents the GST inclusive market value of the donation on the day it was made, the committee will refer the donation to the Commissioner of Taxation for determination

Step Seven

Where the Commissioner of Taxation has made a determination of the GST inclusive market value of the gift, that amount will be the amount that the donor may deduct for the gift, and not the average of the valuations that the donor obtained from the approved valuers

Step Eight

Once the donation is certified as meeting program requirements, the documentation is stamped and sent to the donor for his/her tax records and a copy of the committee’s letter is sent to the institution for its information