10-year gift

Notice to the reader

As a result of Budget 2010, the information below applies only for fiscal periods ending before March 4, 2010.

A 10-year gift is a donation made to a registered charity that is subject to a donor's written trust or direction that the gift, or any property substituted for it, be held by the recipient charity, or another registered charity (if the gift is transferred) for 10 years or more from the date the gift was made.

A 10-year gift is a form of enduring property and is excluded from the charity's disbursement quota (spending requirement) until the year it is spent or transferred to a qualified donee. However, if the recipient charity does not use the 10-year gift in its charitable activities or administration while holding it, the charity may subsequently have to consider the 10-year gift when determining the average value of property not used directly in charitable activities or administration for the calculation of its disbursement quota.

Receiving gifts with a 10-year direction can be a useful way for a registered charity to accumulate a capital fund, with the intention, for example, of using only the interest income to carry out its activities. The charity must ensure that each 10-year gift it receives is tracked separately so that it may monitor when each holding period expires. 

A written direction must accompany the gift and cannot be added at a later date. The direction must be signed and dated by the donor at the time the gift is made to make it valid.


I hereby give *** to ABC charity under the specific instructions that this gift, or any property substituted for it, be held by ABC charity for a period of not less than 10 years.

(Signature of Donor)

Name of Donor            



Spending any amount of the capital of a 10-year gift before the end of the term is allowable only where the trust or direction permits the registered charity to do so in order to meet its disbursement quota. The amount spent must be limited to the 3.5% disbursement quota requirement determined for a taxation year.


I hereby give ABC charity the discretion to spend the capital of this gift before the end of its term, to the extent necessary to meet its disbursement quota, provided that it does not contravene the Income Tax Act. 

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