Summary Policy

Date
June 17, 2005 (Revised November 23, 2005)

Reference Number
CSP - E10

Key Words
Enduring property

Policy Statement

Enduring property of a registered charity includes:

• a gift received by way of bequest or inheritance (including direct distributions of proceeds to a registered charity that is the designated beneficiary of a life insurance policy, a registered retirement savings plan or a registered retirement income fund);
• a gift received by a charitable organization from another registered charity that is subject to a trust or direction to the effect that the property given, or property substituted for the gift,
  • is to be held by the charitable organization for a period of not more than five years from the date the gift was received by the charitable organization, and
  • is to be expended in its entirety over the period referred to in the trust or direction to acquire a tangible capital property to be used in charitable activities or administration, and/or in the course of a program of charitable activities of the charitable organization that could not reasonably be completed before the end of the fiscal period;
• a ten-year gift;
• a gift received by a charity from another charity that was a ten-year gift or a bequest (including direct distributions of proceeds to a registered charity that is the designated beneficiary of a life insurance policy, a RRSP, or a RRIF) of the other charity.

These gifts are generally excluded from a registered charity's disbursement quota in the year they are received. However, a charity must consider these gifts when calculating the value of property for its 3.5% disbursement requirement. When a charity spends or transfers some or all of its enduring property, the amount spent or transferred must be included when calculating the disbursement quota requirement.

References

• Bequest, CSP - B04.
• Capital Gains Pool, CSP-C25.
• Direct Designation, CSP - D09.
• Disbursement Quota, CSP - D14.
• Return - Registered Charity Information Return, CSP - R10.
• Ten-year Gift, CSP - T06.
• Will, CSP - W02.
• Portion of 10-year Gift of Shares Disposed of Included in Disbursement Quota Calculation, CPC-021.
• Completing the Registered Charity Information Return, T4033A.
• Capital Gains and Disbursement Quota Worksheet, T1259.
• Registered Charity Information Return, T3010A.
• Registered Charities and the Income Tax Act, RC4108.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 149.1(1).