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.

In some cases, a municipality may be an eligible donee. For example, in situations where an eligible charity cannot be found in order to keep the property in the charitable sector, the Minister may allow the property to be transferred to a municipality for the benefit of the community.

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)