–An example (Document 2010-036605)
§CRA considered a situation where a
proposed NPO intended to invest a
substantial amount of cash donated to it to
provide income which would be used by the
NPO exclusively to pay for its
cultural activities and various related operations
§CRA confirmed that the activity of investing cash is considered to be undertaken to earn a profit, which is contrary to the conditions of the ITA. The only exception is where the income-generating assets will themselves be used directly to meet an NPO’s not-for-profit objectives within a reasonable time-frame