EP10. If the terms of a person’s will specify that property be used to establish a charitable foundation, can a donation receipt be issued if the charity is registered?

EP10.If the terms of a person’s will specify that property be used to establish a charitable foundation, can a donation receipt be issued if the charity is registered?

Yes. The fact that the foundation did not exist at the time of the individual's death does not rule out a donation from qualifying as a gift “by will” for the purposes of subsection 118.1(5) of the Act as long as the foundation is a qualified donee when the gift is completed. The completion of the gift should occur within a reasonable period after the death.

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