The Intent:

You want to donate shares of a private company to a registered charity and receive the correct tax credit without triggering CRA scrutiny or delays.

How I solve it:

I apply the 25 Factors Affecting Business Valuation to determine fair market value at the donation date, with particular emphasis on Factor #5: Liquidity, Factor #21: Minority Interest, Factor #24: Risk, and Factor #25: Opportunity. Private company shares are not freely tradable, so liquidity constraints and transfer restrictions materially affect value.

The 5 Senses Inspection Report confirms whether the business has the operational strength and cash-generating capacity to support eventual monetization by the charity.

Experience:

Charitable donation valuations are often challenged when they rely on optimistic assumptions. After 10–15 years of dealing with CRA reviews of donated shares, patterns emerge showing what CRA accepts and what they question.

This judgment protects donors from retroactive reassessments. See my “Experience” link.

The Result:

You receive a defensible valuation that supports the charitable receipt and minimizes CRA risk.

The Intent:

You want to understand how valuation affects tax treatment so you can structure the donation properly and avoid unintended tax consequences.

How I solve it:

I use the 25 Factors to establish fair market value and to identify which aspects of the business influence eligibility and valuation risk. Factor #1: Purpose, Factor #5: Liquidity, Factor #21: Minority Interest, and Factor #24: Risk are central when interpreting tax rules.

The 5 Senses Inspection Report helps demonstrate that the business has real economic substance and is not being used solely as a tax vehicle.

Experience:

Experience shows that CRA looks closely at motive and structure in share donations. After years of observing which donations pass smoothly and which stall, it becomes clear how valuation presentation affects outcomes.

This insight comes only from repeated exposure. See my “Experience” link.

The Result:

You structure the donation with a valuation that aligns with tax rules and withstands scrutiny.

The Intent:

You want certainty that the valuation used will be accepted by CRA without prolonged review or dispute.

How I solve it:

CRA accepts valuations that clearly demonstrate fair market value using recognized principles. I apply the 25 Factors Affecting Business Valuation transparently, avoiding unsupported goodwill or artificial assumptions.

The 5 Senses Inspection Report provides observable evidence that supports the valuation’s economic rationale.

Experience:

After years of interacting with CRA on donation files, it becomes clear that credibility and clarity matter more than complexity. Experience teaches how to present valuations in a way CRA reviewers can follow and trust.

This practical knowledge reduces friction and delay. See my “Experience” link.

The Result:

You receive a valuation that CRA is far more likely to accept, shortening timelines and reducing stress.