Here is a CRA note on what is a qualified donee. If you are involved with governance or management of a charity it is important to understand what is a qualified donee because registered charities can make gifts to qualified donees but registered charities cannot make gifts to “non-qualified donees”. If a registered charity makes a gift to a non-qualified donee it could faces penalties and revocation. After the CRA guidance below I have placed a link to some helpful resources that relate to qualified donees that are working with groups that are not qualified donees in both Canada and also abroad.
http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cgd/qlfddns-eng.html
Qualified Donees Guidance
Reference Number
CG-010
Issued
August 15, 2011
The guidance replaces Summay Policy CSP-Q01, Qualified Donee.
Summary
Under the Income Tax Act, qualified donees are organizations that can issue official donation receipts for gifts that individuals and corporations make to them.
Qualified donees
Qualified donees are as follows:
- a registered charity (including a registered national arts service organization);
- a registered Canadian amateur athletic association;
- a housing corporation resident in Canada constituted exclusively to provide low-cost housing for the aged;
- a Canadian municipality;
- the United Nations and its agencies;
- a university that is outside Canada that is prescribed to be a university, the student body of which ordinarily includes students from Canada;
- a charitable organization outside Canada to which Her Majesty in right of Canada has made a gift during the fiscal period or in the 12 months immediately preceding the period; and
- Her Majesty in right of Canada or a province.
Proposed changes to the Income Tax Act, being administered by the Canada Revenue Agency, expand qualified donees to include a municipal or public body performing a function of government in Canada.
References
- Income Tax Act, R.S.C. 1985 (5th supp.) c. 1, para. 110.1(1)(), ss. 118.1(1) and 149.1(1) and 149.1(6.4).
- Disbursement of Funds to a Qualified Donee, CPC-014.
- Gifts to Certain Charitable Organizations Outside Canada, IC84-3R6.
- Registered Charities Newsletter, Issue No. 24.
- Donations to Prescribed Universities Outside Canada, RC191.
————————
For more resources on this topic see a page on www.globalphilanthropy.ca(TM):
CRA’s new Guidance on foreign activities by Canadian charities
https://www.canadiancharitylaw.ca/blog/cras_new_guidance_on_foreign_activities_by_canadian_charities/
Related Posts
January 14, 2021
Going the Extra Mile: The Liability of Foreignness in U.S. Foundation International Grantmaking to Local NGOs
I recently ran across a very good article entitled: "Going the Extra Mile: The Liability of Foreignness in U.S. Foundation International Grantmaking…
January 13, 2021
Blackbaud’s “Tax Receipting and the Top Compliance Issues for Canadian Charities” delivered by Mark Blumberg
Mark Blumberg will be delivering a webinar for Blackbaud on "Tax Receipting and the Top Compliance Issues for Canadian Charities". Here is further…
January 2, 2021
La Presse Inc. is first registered journalism organization registered under new category of qualified donee
La Presse Inc. is now the first registered journalism organization registered under new category of qualified donee. You can see it listed here. As…