Yes. A Canadian charity can use an intermediary in Canada to carry on its own activities as long as the Canadian charity maintains direction and control over how its funds are used. On June 20, 2011 the Charities Directorate of the Canada Revenue Agency released a guidance entitled “Using an Intermediary to Carry out a Charity’s Activities within Canada” (Reference number CG-004)
The Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” (Reference number CG-004) states:
“1. Summary
According to the Income Tax Act, a registered charity can only use its resources (for example – funds, personnel, and property) in two ways, whether inside or outside Canada:
• on its own activities (those which are directly under the charity’s control and supervision, and for which it can account for any funds expended); and
• on gifts to qualified donees.”
For more information on the CRA Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” (Reference number CG-004) see:
https://www.canadiancharitylaw.ca/index.php/blog/category/using_intermediaries_in_canada/ or
http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cgd/ntrmdry-eng.html
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