CVCA welcomes Ottawa's green light to LP investments by charities
The Canadian Venture Capital and Private Equity Association (CVCA) has welcomed a measure in the federal Budget 2015 that paves the way for legal charities to invest in limited partnerships (LPs). The initiative, which the CVCA has been advocating over the past year, involves an amendment to the Tax Act that allows registered charities to invest in LPs provided that the investment is passive in nature. Except for charitable organizations or foundations that carry on a related business through an LP, investing entities must deal at arms length with the general partner and hold 20 percent or less of all LP interests.
23 April 2015•2 mins read
