Capital fund

Summary policy

The information on this page applies only for fiscal periods ending before March 4, 2010.

September 3, 2003 (Revised September 13, 2005)

Reference number

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 Canada Revenue Agency's written permission.

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