The CRA has reminded charities that they can engage in foreign activities, but there are rules regarding how such activities are carried out.   For some in the sector, this note may seem obvious, but there is a lot of confusion about foreign activities and Canadian charities. The confusion perhaps peaks with foundations, and we have included mistakes in understanding foreign activities as a common fallacy in our article about private foundation fallacies   We also have a whole directory dealing with Global Giving.

Here is the note from CRA:

Charities and giving – What’s new

Canadian registered charities carrying on activities outside Canada

Does your registered charity carry on activities outside Canada, including in areas of conflict or humanitarian crises? If so, it’s important to understand how Canadian rules and regulations apply to your charitable work. No matter where you operate, as a Canadian registered charity your purposes and activities must always comply with Canadian law, including the requirements for registered charities under the Income Tax Act and common law.

The Income Tax Act allows a registered charity to operate, both inside and outside Canada, by:

• carrying on its own charitable activities through:
  • its staff and volunteers
  • an intermediary, where a charity must exercise direction and control over its own resources
• making qualifying disbursements through:
  • gifts to qualified donees
  • grants to grantees (non-qualified donees), where a charity must meet accountability requirements

For more information about topics such as making sure your resources are devoted to charitable activities, working with intermediaries, and proper record keeping and reporting practices, refer to our guidance product CG-002, Canadian registered charities carrying on activities outside Canada.

Reporting suspected non-compliance by registered charities

The Canada Revenue Agency (CRA) is responsible for protecting the integrity of the tax system and maintaining trust in the charitable sector. If you have information that a charity may not be complying with the Income Tax Act, you can report it to the CRA by submitting a lead to the Leads Program. The CRA reviews all leads to determine whether non-compliance has occurred. Visit Reporting suspected tax or benefit cheating in Canada to learn more.

We’re here to help

For other charities-related questions, please call our Charities Directorate client service team at 1-800-267-2384. Our representatives are available to help you Monday through Friday, from 9 am to 5 pm, local time.