www.carters.ca
www.charitylaw.ca
(iv) Commentary on PRIs
A charity may only make a PRI
with an arms length corporation
Although a charity is not
required to include the value of its PRIs in calculating its
3.5% disbursement quota, a charity is not permitted to include
the PRI as a charitable expenditure
All types of charities can make
PRIs in the form of share purchases, but public and private
charitable foundations cannot acquire a controlling interest
in a company
§Furthermore,
if a private foundation acquires more than 20% of any class
of shares in a company, it may trigger divestment obligations and
sanctions
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