Glossary

D

Damages

Harm suffered by someone. The harm could be to his physical or psychological health or to his property or income.

De minimis rule

When donors get something in return for a donation, the value of what they get must usually be subtracted from the amount of the donation when a tax receipt is issued. However, when the value of what donors get is less than 10% of the value of the donation and not more than $75, it does not have to be subtracted.

Debtor

A person who owes something to someone else. For example let’s say that Paul borrows $5.00 from Peter. Paul is a debtor of Peter for $5.00.

Deduction

An amount that can be subtracted from the income on which income tax is calculated. When an incorporated business donates to a registered charity, it can use the amount of its donation as a deduction.

Deemed fair market value

When a registered charity issues a tax receipt for a gift of a thing instead of money, it must put a dollar value on the thing. The dollar value must be calculated on the basis of the (FMV). The FMV is highest price the thing would be worth if it were sold by a knowledgeable seller to a knowledgeable buyer in the marketplace and the seller and buyer were arm's length from one another (not connected by family or business ties).

But in some cases, the law requires charities to put a price on a thing that is the deemed FMV. The deemed FMV is the lower of either the FMV or what the thing cost the donor. To find out when the deemed FMV must be used, consult the explanation on the website of the Canada Revenue Agency.

Defendant

The person against whom a court case is brought.

Designated gift

A gift (donation) to a registered charity by a donor who wants the gift to be used for a specific person or family. Registered charities are not allowed to give official tax receipts for these kinds of gifts. However, in some cases, a donor can give general directions that the gift be used for a particular program and still get a tax receipt. Designated gifts are sometimes called directed gifts.

Designation

When the Canada Revenue Agency registers a charity, it is assigned to one of 3 categories or “designations”: charitable organization, public foundation or private foundation.

The choice of category depends on whether the charity focuses on carrying out its own activities or giving money to other organizations, the structure of its board of directors and its sources of funding.

Detention in custody

When a person accused of breaking the law is put into jail until the end of her trial. For example, people accused of serious crimes are detained in custody when they are judged to be very dangerous or there is chance that they will not show up for their trials.

Directed gift

See Designated Gift.

 

Directors

People elected or appointed to a board of directors. The board is the group of directors who oversee the affairs of an organization or of a business corporation.

Disbursement quota

A minimum amount a registered charity must spend each year on its own charitable activities or on gifts to qualified donees.

Since the definition of this term is complex, we invite you to read the explanation in our Infosheet Rules Registered Charities Must Follow.

Discharge

When someone has been found guilty of a crime or has admitted guilt, the court can decide that the person will be "discharged". This means the person will be found guilty, but will not get a sentence. The discharge can be either absolute (no conditions) or conditional (with conditions).

District

Each courthouse in Quebec has authority over a geographic area called a judicial district. Quebec is divided into 36 judicial districts.

Donor

A person or organization making a donation of money or a thing.

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