Designated gift

A gift or portion of a gift that a registered charity makes to another non-arm's length registered charity in a taxation year and reports as a designated gift on line 38.1 of its information return for that year.

The donor charity cannot consider a designated gift as an expense incurred to satisfy its disbursement quota (and cannot include this type of gift on line 111 of Schedule A of its information return). The donee charity does not have to spend an amount equal to a designated gift in the year following the year the gift was received (line 130 of the Schedule A of the donee's information return).