What valuation does CRA accept for donations?

A practical valuation answer

For CRA and tax-related matters, valuation usually centers on fair market value at the relevant date, supported by defensible assumptions and documentation that can withstand later review. The exact approach depends on the property transferred, the rights attached to it, and the tax context of the transaction.

For this type of engagement, the analysis usually focuses on the rights attached to the donated interest, the valuation standard required by the tax rules, and documentation strong enough for CRA review. That is how the answer moves from a generic opinion to a defensible valuation conclusion that fits the facts.

Core valuation checklist

• Confirm the valuation purpose, date, and standard of value before starting.
• Collect the records that matter most: financial statements, tax returns, ownership documents, contracts, and any relevant legal or tax materials.
• Analyze the rights attached to the donated interest, the valuation standard required by the tax rules, and documentation strong enough for CRA review.
• Document assumptions clearly so the conclusion can be explained to buyers, advisors, counterparties, or the court if needed.