Summary Policy

Date
September 3, 2003 (Revised September 13, 2005)

Reference Number
CSP - C15

Key Words
Capital Fund - Enduring property

Policy Statement

A registered charity can solicit donations to set up a capital fund for its ongoing activities. Under the Income Tax Act, gifts of capital received by way of bequest or inheritance and gifts received subject to a trust or direction that they be held by the charity for 10 years or more are generally excluded from a charity's disbursement quota because they meet the definition of enduring property. A charity can accumulate such funds without the CRA's written permission.

References

• Accumulation, CSP - A03.
• Bequest, CSP - B04.
• Direct Designation, CSP-D09.
• Disbursement Quota, CSP - D14.
• Enduring Property, CSP-E10.
• Ten-Year Gift, CSP - T06.
• Capital Gains and Disbursement Quota Worksheet, T1259.
• Completing the Registered Charity Information Return, T4033B.
• Registered Charity Information Return, T3010B.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 149.1(1).