2. Eligibility Criteria

• 2.1 Associate foundation
• 2.2 Beneficiary arts organization
• 2.3 Ineligible organizations

An application to the Endowment Incentives component must be submitted jointly by a not-for-profit professional arts organization and an associated foundation. Each of these two parties must meet their respective eligibility criteria.

The foundation becomes the recipient of the matching funds; the not-for-profit professional arts organization is the final beneficiary of the income generated from the foundation's investment.

2.1 Associate foundation

To be eligible, the foundation must:

be a publicly registered charitable foundation at the time of application, as described in subsection 149.1 (1) of the Income Tax Act, whose mandate is to accumulate, administer, and invest capital assets for the purpose of providing part or all of the annual income to the associated organization.

2.2 Beneficiary arts organization

To be eligible, the not-for-profit professional arts organization must:

• be incorporated under the appropriate federal, provincial or territorial legislation;
• receive support from either the Canada Council for the Arts (http://www.canadacouncil.ca/), the Arts Presentation Canada (http://www.pch.gc.ca/pgm/pac-apc/index-eng.cfm) program, or be a training institution supported through the National Arts Training Contribution Program (http://www.pch.gc.ca/pgm/ffsa-catf/index-eng.cfm), at the Department of Canadian Heritage. Note: Applications from organizations that received funds under this component prior to the addition of this criterion in 2005-2006 will be considered.
• have as its principal mission (core purpose as outlined in their mission statement):
  • the creation or production of professional artistic works;
  • the presentation of professional artistic works; or
  • the training of professional artists;
  • have been in operation for a minimum of three years prior to the application; cannot have a negative net assets balance in excess of 15% of the total revenues for the fiscal year. The net assets balance used in the calculation must exclude any externally restricted components. Both figures to be used in this calculation are based on the financial statements, presented according to the generally accepted accounting principles of Canada.

2.3 Ineligible organizations

The following are not eligible under this component:

• Heritage organizations
• Competitions
• Federal agencies, Crown corporations, provinces, territories, and municipalities and their agencies.

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