Trust Document

Guidance

Reference number
CG-009

Issued
August 15, 2011

Summary

Charitable organizations, public foundations, and private foundations may be established under a trust document.

Elements of a trust document

For registration purposes, the Charities Directorate requires that at least the following requirements are in a trust document:

• the name of the trust;
• the name of the settlor(s) or the name of the person(s) making the declaration of trust;
• the names of the original trustees;
• the charitable purposes of the trust;
• the rules governing how the trustees will administer all property (including money) received;
• an acknowledgement that the initial trust property (including money) has been transferred to and received by the trustee;
• a provision in which the trustees give assurance that all property (including money) received will be applied only for the purposes outlined in the trust document;
• a provision detailing how the trustees will be replaced;
• the effective date of the document; and
• the signatures of the trustees.

Applying for charitable registration

When they apply for registration as a charity, we recommend that applicants submit a copy of the trust document in a draft format for our review. The reason for this request is that amendments to a trust that is already established may not be possible or may require court approval. If we approve the application, applicants will have to submit a signed trust document prior to registration.

Caution

Approval of the trust document as an acceptable governing document for registration purposes under the Income Tax Act should not be considered as being legal advice regarding the validity of the trust. The Charities Directorate recommends that you seek independent legal advice before enacting or amending a trust.

References

• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 149.1
• Registering a Charity for Income Tax Purposes, T4063.