Eligible donee

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
• 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

• Summary policy CSP-R12, Revocation
• Summary policy CSP-R24, Revocation
• Charities Registration (Security Information) Act, S.C. 2001, c. 41, s. 113
• Excise Tax Act, R.S. 1985, c. E-15
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 188(1.3), 189(6.2) and (6.3)

Date modified:

2008-08-27