EP1. What is included in enduring property?

Notice to the Reader
As a result of Budget 2010, the information on this page applies only for fiscal periods ending before March 4, 2010.

EP1. What is included in enduring property?

While there are some specific exceptions, enduring property of a registered charity generally includes:

A gift received by way of bequest or inheritance
may include direct distributions of proceeds to a registered charity that is the designated beneficiary of a life insurance policy, a registered retirement savings plan, or a registered retirement income fund.

A gift received by a charitable organization from another registered charity that is subject to a trust or direction to the effect that the property given, or property substituted for the gift,
is to be held by the charitable organization for a period of not more than five years from the date the gift was received and is to be expended in its entirety over the period referred to in the trust or direction to acquire a tangible capital property to be used in charitable activities or administration; and/or in the course of a program of charitable activities of the charitable organization that could not reasonably be completed before the end of the first fiscal period following the fiscal period in which the gift was received.

A gift received by a charity that is subject to a trust or direction to the effect that the property given, or property substituted for the gift, is to be held by the charity for a period of not less than 10 years (a “10-year gift”)
The trust or direction may permit the charity to transfer the enduring property to another registered charity (the “transferee charity”), subject to the same terms and conditions of the original gift. It may also permit the charity, or the transferee charity, to expend such amount of the gift or the substituted property before the end of that period, to the extent necessary to meet the 3.5 per cent disbursement quota requirement.

A gift received by a charity from another charity
that was a bequest or inheritance of the other charity or a ten-year gift of the other charity, and in the case of a ten-year gift, is subject to the same terms and conditions of the original gift.


(Reprinted with permission from Info Sheet #12 Enduring Property by Charities Files)