The 2015 Federal Budget proposed changes to the Income Tax Act (Canada) to allow a registered charity to invest in a limited partnership as long as it meets all of the following conditions:
- the liability of the charity as a member of the partnership is limited under any law governing the arrangement in respect of the partnership;
- the charity – together with all non-arm's length entities – holds 20% or less of the interests in the limited partnership;
- the charity deals at arm's length with each general partner of the limited partnership.
As a result, all registered charities must now report their partnership holdings as part of their annual information return. For details, please visit the CRA's website: http://www.cra-arc.gc.ca/E/pub/tg/15-122/15-122-e.html