ARCHIVED – Enhancing the Regulatory Regime for Qualified Donees

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Municipalities

1. What is the current status of municipalities under the Income Tax Act?
2. What are the new requirements for municipalities?
3. What are the consequences if a municipality does not comply with these rules?
4. Is a municipality required to take any action to continue to maintain its current status as a qualified donee?
5. When do these new rules apply?
6. Where will I find more information on the proposed measures?

Prescribed Universities Outside Canada

1. What is the current status of Prescribed Universities Outside Canada under the Income Tax Act?
2. What are the new requirements for Prescribed Universities Outside Canada?
3. What are the consequences if a Prescribed University Outside Canada does not comply with these rules?
4. What are the requirements for being a Prescribed University Outside Canada?
5. Is there a current list of these universities?
6. What will happen if a prescribed university is removed from CRA's list?
7. Are books and records required to be kept in Canada?
8. When do these new rules apply?
9. Where will I find more information on the proposed measures?

Certain Charitable Organizations Outside Canada to which Her Majesty in right of Canada has made a Gift

1. What is the current status under the Income Tax Act of certain charitable organizations outside Canada to which Her Majesty in the Right of Canada has made a gift?
2. What are the new requirements for certain charitable organizations outside Canada to which Her Majesty in the Right of Canada has made a gift?
3. What are the consequences if such an organization does not comply with these rules?
4. What are the requirements to be considered a qualified donee as a charitable organization outside Canada to which Her Majesty in right of Canada has made a gift?
5. Is there a current list of these organizations?
6. Are books and records required to be kept in Canada?
7. When do these new rules apply?
8. Where will I find more information on the proposed measures?

Municipal or Public Bodies Performing a Function of Government in Canada

1. What is the current status of Municipal or Public Bodies Performing a Function of Government in Canada under the Income Tax Act?
2. What are the new requirements for Municipal or Public Bodies Performing a Function of Government in Canada?
3. What are the consequences if a Municipal or Public body does not comply with these rules?
4. What types of organizations would be considered Municipal or Public Bodies Performing a Function of Government in Canada?
5. Is a Public Body performing a function of government required to take any action to maintain its status as a qualified donee?
6. When do these new rules apply?

Low-Cost Housing Corporations for the Aged

1. What is the current status of Low-Cost Housing Corporations for the Aged under the Income Tax Act?
2. What are the new requirements for Low-Cost Housing Corporations for the Aged?
3. What are the consequences if a Low-Cost Housing Corporation for the Aged does not comply with these rules?
4. What other requirement would a Low-Cost Housing Corporation for the Aged have to meet to be considered a qualified donee?
5. Is a Low-Cost Housing Corporation for the Aged required to take any steps to maintain its status as a qualified donee?
6. When do these new rules apply?
7. Where will I find more information on the proposed measures?

Municipalities

1. What is the current status of municipalities under the Income Tax Act?

Municipalities enjoy the same "qualified donee" status as registered charities, meaning they can issue official donation receipts for gifts that then allow donors to claim tax relief and as qualified donees they can receive funds from registered charities.

2. What are the new requirements for municipalities?

Budget 2011 proposes that municipalities be on a publicly available list maintained by the CRA in order to continue to be recognized as qualified donees. Municipalities will also be required to keep books and records supporting any official donation receipts they issue, and provide these to CRA upon request.

3. What are the consequences if a municipality does not comply with these rules?

If a municipality fails to keep books and records supporting any official donation receipts it issues, and to provide these to CRA upon request, or is involved in the improper issuance of donation receipts, the CRA may suspend its receipting privileges or revoke its qualified donee status.

4. Is a municipality required to take any action to continue to maintain its current status as a qualified donee?

No. The CRA will be compiling a list of recognized municipalities based on information obtained from the provincial governments. Being on CRA's public list will be sufficient to show that a municipality is a qualified donee. If a municipality is not on the CRA's public list, it will have to obtain appropriate provincial or territorial confirmation of its status as a municipality in order to be added to the list.

5. When do these new rules apply?

The rules will apply on or after the later of January 1, 2012, and Royal Assent of the implementing legislation. During the interim period, municipalities will continue to be eligible for qualified donee status based on the current rules.

6. Where will I find more information on the proposed measures?

As further information is developed, it will be available on the Charities and Giving Web pages.

Prescribed Universities Outside Canada

1. What is the current status of Prescribed Universities Outside Canada under the Income Tax Act?

Prescribed Universities Outside Canada enjoy the same "qualified donee" status as registered charities, meaning they can issue official donation receipts for gifts that then allow donors to claim tax relief, and as qualified donees they can receive funds from registered charities.

2. What are the new requirements for Prescribed Universities Outside Canada?

Budget 2011 proposes that Prescribed Universities Outside Canada be on a publicly available list maintained by the CRA in order to continue to be recognized as qualified donees. These universities will also be required to keep books and records supporting any official donation receipts they issue, and to provide these to the CRA upon request.

3. What are the consequences if a Prescribed University Outside Canada does not comply with these rules?

If a Prescribed University Outside Canada fails to keep books and records supporting any official donation receipts it issues, and to provide these to CRA upon request, or is involved in the improper issuance of donation receipts, the CRA may suspend its receipting privileges or revoke its qualified donee status.

4. What are the requirements for being a Prescribed University Outside Canada?

To be considered for prescribed status, a foreign educational institution must:

• maintain an academic entrance requirement of at least secondary school matriculation standing;
• be organized for teaching, study and research in the higher branches of learning;
• be empowered, in its own right, to confer degrees of at least the baccalaureate level (Bachelor or equivalent), according to academic standards and statutory definitions prevailing in the country in which the university is situated; and
• ordinarily include Canadian students in its student body.

Further information on the requirements can be found in CRA's publication RC191, Donations to Prescribed Universities Outside Canada.

5. Is there a current list of these universities?

Yes. The educational institutions that are prescribed to be "universities outside Canada" for this purpose are listed in Schedule VIII of the Canadian Income Tax Regulations. Once added to Schedule VIII, prescribed universities will automatically be added to the new CRA's public list that will be maintained on the CRA Web site.

6. What will happen if a prescribed university is removed from CRA's list?

It will no longer have qualified donee status. In addition to being listed in Schedule VIII of the Canadian Income Tax Regulations, a prescribed university must be on the CRA's public list to maintain its qualified donee status.

7. Are books and records required to be kept in Canada?

No. Prescribed universities may keep their books and records in their own jurisdiction but must make them available in Canada at the request of the CRA.

8. When do these new rules apply?

The rules will apply on or after the later of January 1, 2012, and Royal Assent of the implementing legislation. During the interim period, prescribed universities outside Canada will continue to be eligible for qualified donee status based on the current rules.

9. Where will I find more information on the proposed measures?

As further information is developed, it will be available on the Charities and Giving Web pages.

Certain Charitable Organizations Outside Canada to which Her Majesty in right of Canada has made a Gift

1. What is the current status under the Income Tax Act of certain charitable organizations outside Canada to which Her Majesty in the Right of Canada has made a gift?

Charitable organizations outside Canada to which Her Majesty in Right of Canada has made a gift enjoy the same "qualified donee" status as registered charities, meaning they can issue official donation receipts for gifts that then allow donors to claim tax relief and as qualified donees they can receive funds from registered charities.

2. What are the new requirements for certain charitable organizations outside Canada to which Her Majesty in the Right of Canada has made a gift?

Budget 2011 proposes that these organizations be on a publicly available list maintained by the CRA in order to continue to be recognized as qualified donees. These organizations will also be required to keep books and records supporting any official donation receipts they issue, and provide these to CRA upon request.

3. What are the consequences if such an organization does not comply with these rules?

If a charitable organization outside Canada to which Her Majesty in the Right of Canada has made a gift fails to keep books and records supporting any official donation receipts it issues, and to provide these to CRA upon request, or is involved in the improper issuance of donation receipts, the CRA may suspend its receipting privileges or revoke its qualified donee status.

4. What are the requirements to be considered a qualified donee as a charitable organization outside Canada to which Her Majesty in right of Canada has made a gift?

To be considered a qualified donee as an organization outside Canada to which Her Majesty in right of Canada has made a gift, the federal department that made the payment, or the recipient organization itself, should forward the following information to the Charities Directorate, Canada Revenue Agency:

• a copy of the governing document of the foreign entity;
• a description of the foreign entity's activities;
• a copy of the letter or certificate issued by the foreign authority granting the foreign entity charitable status;
• copies of correspondence, agreements, or other documents related to the Crown gift; and
• proof that the gift has been made (for example a copy of the cheque).

The Charities Directorate will then consider whether the foreign entity qualifies based on a two-part test. First, the organization must demonstrate that it was the recipient of a gift. Second, the organization must demonstrate that it would meet the requirements for registration as a charitable organization in Canada.

5. Is there a current list of these organizations?

Yes. The CRA Charities Directorate maintains a list of these organizations. It can be found through the Charities-related forms and publications pages.

Once the Charities Directorate has determined whether a gift has been made and whether the foreign organization would meet the registration requirements, it will provide written confirmation of its decision. If the organization meets the two-part test, its name will be added to the CRA's public list.

6. Are books and records required to be kept in Canada?

No. These organizations may keep their books and records in their own jurisdiction but must make them available in Canada at the request of the CRA.

7. When do these new rules apply?

The rules will apply on or after the later of January 1, 2012, and Royal Assent of the implementing legislation. During the interim period, these organizations will continue to be eligible for qualified donee status based on the current rules.

8. Where will I find more information on the proposed measures?

As further information is developed, it will be available on the Charities and Giving Web pages.

Municipal or Public Bodies Performing a Function of Government in Canada

1. What is the current status of Municipal or Public Bodies Performing a Function of Government in Canada under the Income Tax Act?

Municipal or Public Bodies Performing a Function of Government in Canada are treated as "qualified donees" in a manner similar to registered charities, meaning they can issue official donation receipts for gifts that then allow donors to claim tax relief, and as qualified donees they can receive funds from registered charities.

2. What are the new requirements for Municipal or Public Bodies Performing a Function of Government in Canada?

Budget 2011 proposes that Municipal or Public Bodies Performing a Function of Government in Canada be on a publicly available list maintained by the CRA in order to continue to be recognized as qualified donees. These bodies will also be required to keep books and records supporting any official donation receipts they issue, and to provide them to the CRA upon request.

3. What are the consequences if a Municipal or Public body does not comply with these rules?

If a municipal or public body fails to keep books and records supporting any official donation receipts it issues, and to provide these to CRA upon request, or is involved in the improper issuance of donation receipts, the CRA may suspend its receipting privileges or revoke its qualified donee status.

4. What types of organizations would be considered Municipal or Public Bodies Performing a Function of Government in Canada?

Examples of the types of organizations that could meet this definition include certain provincial corporations, First Nations and Aboriginal self governments, school boards and public transit authorities.

5. Is a Public Body performing a function of government required to take any action to maintain its status as a qualified donee?

Not at this time. The CRA will provide further guidance on the process that will be instituted for these bodies to be added to the CRA's new public list.

6. When do these new rules apply?

The rules will apply on or after the later of January 1, 2012, and Royal Assent of the implementing legislation. During the interim period, there will be no change to the treatment of Municipal or Public Bodies Performing a Function of Government in Canada.

7. Where will I find more information on the proposed measures?

As further information is developed, it will be available on the Charities and Giving Web pages.

Low-Cost Housing Corporations for the Aged

1. What is the current status of Low-Cost Housing Corporations for the Aged under the Income Tax Act?

Low-Cost Housing Corporations for the Aged enjoy the same "qualified donee" status as registered charities, meaning they can issue official donation receipts for gifts that then allow donors to claim tax relief, and as qualified donees they can receive funds from registered charities.

2. What are the new requirements for Low-Cost Housing Corporations for the Aged?

Budget 2011 proposes that these corporations be on a publicly available list maintained by the CRA in order to continue to be recognized as qualified donees. They will also be required to keep books and records supporting any official donation receipts they issue, and to provide these to the CRA upon request.

3. What are the consequences if a Low-Cost Housing Corporation for the Aged does not comply with these rules?

If a Low-Cost Housing Corporations for the Aged fails to keep books and records supporting any official donation receipts it issues, and to provide these to the CRA upon request, or is involved in the improper issuance of donation receipts, the CRA may suspend its receipting privileges or revoke its qualified donee status.

4. What other requirement would a Low-Cost Housing Corporation for the Aged have to meet to be considered a qualified donee?

In addition to the new requirements, to be considered a qualified donee the corporation would have to be resident in Canada and constituted exclusively for the purpose of providing low-cost housing accommodation for the aged. No part of the corporation's income could be payable or otherwise available for the personal benefit of any proprietor, member or shareholder.

5. Is a Low-Cost Housing Corporation for the Aged required to take any steps to maintain its status as a qualified donee?

Not at this time. The CRA will provide further guidance on the process that will be instituted for these bodies to become listed entities.

6. When do these new rules apply?

The rules will apply on or after the later of January 1, 2012, and Royal Assent of the implementing legislation. During the interim period, low-cost housing corporations for the aged will continue to be eligible for qualified donee status based on the current rules.

7. Where will I find more information on the proposed measures?

As further information is developed, it will be available on the Charities and Giving Web pages.

Date modified:

2015-07-15