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:

  1. the liability of the charity as a member of the partnership is limited under any law governing the arrangement in respect of  the partnership;
  2. the charity – together  with all non-arm's length entities – holds 20% or less of the interests in the limited partnership;
  3. 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: