In order for donors to receive the tax benefits associated with the Ecological Gifts Program, Environment Canada or a designated authority must certify that the land is ecologically sensitive and that the recipient is approved to receive the gift. Environment Canada must also certify the fair market value of the donation.

This is a straightforward but multiple-step process, so donors are encouraged to initiate their donation early in the calendar year if they wish to use the resulting tax benefits the same year. Potential donors should seek independent financial and legal advice before proceeding with an ecogift donation, to ensure that the implications are clearly understood.

Landowners usually take the following steps to donate their land:

1. Arrange your donation. Select and contact an approved recipient to discuss your land, conservation goals and donation options. It is strongly recommended that both the donor and recipient seek independent legal and tax advice to ensure the donation implications are clearly understood.
2. Prepare and file information on ecological sensitivity. The recipient may also help donors prepare the documentation required to determine if your land qualifies as ecologically sensitive. There is no formal application form for this step; instead, the landowner and recipient work together to collect the information Environment Canada requires to determine whether the property qualifies as ecologically sensitive, as defined by national, provincial or territorial criteria. Please see The Canadian Ecological Gifts Program Handbook 2005.
3. Apply for certification of the value of the donation. The donor must submit an independent appraisal of the fair market value of the donation to Environment Canada, along with a signed application form. When commissioning an appraisal for your ecogift, be sure to consult the EGP publication Guidelines for Appraisals, and ensure that your appraiser has a copy. The review of appraisals normally takes up to 90 days, so donors are advised to complete this step by mid-September at the latest if they wish to use their tax receipt the same year.
4. Finalize the donation. If the donor agrees with the fair market value that Environment Canada is prepared to certify, the donation should be completed (i.e. the title to the land should be transferred or the conservation easement, covenant or servitude registered). Once Environment Canada has evidence of this, a Statement of Fair Market Value will be sent to the donor. It is at this point that the recipient should issue the official donation receipt.

For a more detailed description of the donation process, consult The Canadian Ecological Gifts Program Handbook 2005.