Designated Gift
A gift or portion of a gift that a registered charity makes to another registered charity with which it is not dealing at arm's length in a taxation year and reports as a designated gift on line 38.1 of its information return for that year.
Note
The donor charity cannot consider a designated gift to be an expense made to meet its own disbursement quota. This type of gift therefore cannot be included on line 111 of the donor's Schedule A. The donee charity does not have to spend an amount equal to a designated gift during the year following the year in which the gift was received (line 130 of the donee's Schedule A).