Summary Policy

Date
November 3, 2005

Reference Number
CSP - E09

Key Words
Eligible donee

Policy Statement

Under the Income Tax Act, an eligible donee is a registered charity:

• that is not subject to a suspension of tax-receipting privileges;
  
  
• that is not subject to a security certificate under the Charities Registration (Security Information) Act;
  
  
• that has no unpaid liabilities under the Act or Excise Tax Act;
  
  
• that has filed all of its information returns; and
  
  
• of which more than 50% of the members of the board of directors or trustees deal at arm's length with each member of the board of directors or trustees of the particular charity.

A charity that is liable for a tax or penalty under the Act that exceeds $1,000 may satisfy that liability by transferring the amount owing to an eligible donee.

References

• Arm's Length, CSP-A07.
• Return - Registered Charity Information Return, CSP-R10.
• Revocation, CSP-R12.
• Revocation Tax, CSP-R24.
• Sanctions, CSP-S17.
• Suspension, CSP-S18.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 188(1.3), 189(6.2) and (6.3).
• Charities Registration (Security Information) Act, S.C. 2001, c. 41, s. 113.
• Excise Tax Act, R.S. 1985, c. E-15.