EP3. If a charity receives enduring property from a registered charity, is there a disbursement quota obligation for the recipient charity?

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

EP3. If a charity receives enduring property from a registered charity, is there a disbursement quota obligation for the recipient charity?

Enduring property (for example, a 10-year gift) received from another charity is generally excluded from the recipient’s disbursement quota in the year it is received. When the recipient charity spends or transfers some or all of its enduring property, the amount spent or transferred must be included when calculating the disbursement quota (unless it was received as a specified gift). The recipient charity must also consider enduring property when calculating average value of property for its 3.5 per cent disbursement quota requirement.

For more information on ten (10) year gifts see:
www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/gfts/10gft-eng.html
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(Reprinted with permission from Info Sheet #12 Enduring Property by Charities Files)