Limited partnership interests

For limited partnership interests acquired after April 20, 2015, a registered charity may invest in limited partnerships without being considered to be carrying on a business solely because of that holding, as long as it meets all of the following conditions:

• The charity must be a limited partner of the partnership.
• The charity, together with all non-arm’s length entities, holds 20% or less of the fair market value of all interests in the partnership.
• The charity deals at arm’s length with each general partner of the partnership.

A registered charity with partnership holdings other than what is described above would be considered to be carrying on the business of the partnership. Depending on the nature of the partnership’s activities and the arrangement, this could result in the registered charity not meeting the requirements for registration under the Income Tax Act.

Related links

• Investments by registered charities in limited partnerships
• Summary policy CSP-R05, Related business