Qualifying disbursements

Disbursements made by a charity, by way of gifts or by otherwise making resources available to:

• a qualified donee, except if the disbursements are made by a charitable organization by way of gifts and they total more than 50% of the charitable organization's income for its taxation year (the limit does not apply to disbursements made by a charitable organization to associated charities);
• a grantee organization, if the charity meets all the following conditions:
  • the charity makes the disbursements for a charitable purpose (other than for the purpose of qualifying disbursements),
  • the charity ensures the disbursements are used exclusively for charitable activities in support of charitable purpose,
  • the charity keeps documents that demonstrate the purpose for which the disbursements are made and that they are used exclusively for charitable activities in support of a charitable purpose.