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Canadian registered charities can in general carry out their own activities by using staff or volunteer. That is not too difficult to understand. However, CRA also allows that a Canadian registered charity can carry out its own activities by using…
Yes there are a number of court decisions dealing with Canadian registered charities and how they are allowed to interact with organizations that are non-qualified donees. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada”…
A qualified donee is a number of organizations that can issue official donation receipts. In general a Canadian registered charity is allowed to make a gift to another qualified donee. On the other hand a Canadian registered charity is not…
A written agreement between a Canadian charity and an intermediary is important but not sufficient to show direction and control. Also CRA has certain requirements for agreements. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within…
What is a description of activities for charitable activities carried out by an intermediary? A “clear, complete, and detailed description ” desciption of activities is a ery important part of showing that a Canadian charity has “direction and control” over…
What is a conduit under CRA’s Guidance on Registered Charities Using an Intermediary In Canada? It is important for charities to understand the concept of “conduit”. Registered charities cannot just flow funds through from the registered charity to a non-profit…
It is important that any intermediary have the capacity to do the job and that there be a “strong expectation” that the funds or resources transferred from the charity will be used appropriately. In CRA’s Guidance “Using an Intermediary to…
The most common types of intermediaries are agent, contractor, joint venture, and co-operative participant. Here is further information on each of them. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: 4.1. What…
Understanding “direction and control” is very important for understanding the permissible relationships between a Canadian charity and a non-qualified donee. CRA’s guidance sets out how a charity should have “direction and control”. In CRA’s Guidance “Using an Intermediary to Carry…
How and how much direction and control varies depending on the circumstances. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: “5.1. How should a charity direct and control the use of its…
One of the measures of control is that a Canadian charity monitor and supervise its activities carried on by the intermediary. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: “5.4. What is…
A Canadian registered charity needs to have a “real, ongoing, active relationship with its intermediary.” Part of that is that a Canadian charity should be apprised of developments and be involved in decision making about the project as it evolves.…
One of the measures of control is that a Canadian charity should provide periodic transfers of funds to an intermediary. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: 5.6. What are periodic…
A Canadian charity’s activities, when carried out by an intermediary, must be distinguishable from the intermediaries activities and in some cases a Canadian charity should ensure that its intermediary segregates its funds. In CRA’s Guidance “Using an Intermediary to Carry…
It is very important that charities not only do “good work” but that they can show afterwards that they do good work. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: “6. Keeping…
Can a Canadian registered charity carry out capacity-building activities within Canada with a non-qualified donee such as a non-profit without charitable status? The short answer is perhaps and it has to be done very carefully. In CRA’s Guidance “Using an…
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…