Foreign charities that have received a gift from Her Majesty in right of Canada

As a result of changes to the Income Tax Act, a foreign charity (which includes both a charitable organization and a charitable foundation) that has received a gift from Her Majesty in right of Canada (the Government of Canada) can become a qualified donee if it meets certain criteria.

To become a qualified donee, a foreign charity must apply for registration and be included on a publicly available list maintained by the Canada Revenue Agency (CRA). A foreign charity that is registered as a qualified donee will have this status for a 24-month period chosen by the CRA that must include the date it received the gift from Her Majesty in right of Canada. While it is a qualified donee, the foreign charity can issue official donation receipts and registered charities can make gifts to it.

The following links include the list of foreign charities that are or were qualified donees, as well as a summary of the recent changes to the legislation related to the eligibility period and criteria for qualified donee status. It also provides information about how to apply for registration and the obligations of qualified donees under the Act.

• List
• Summary of recent legislative changes
• Criteria and application process
• Issuing official donation receipts
• Books and records
• Suspension and revocation
• Judicial review and objections

Summary of recent legislative changes

Changes to the Act which took effect between January 1, 2012, and June 23, 2015, have affected the eligibility period and criteria for foreign charities. To find out more, go to Foreign charities that have received a gift from Her Majesty in right of Canada: Summary of recent legislative changes.

Criteria and application process

For detailed information about the criteria for foreign charities that have received a gift from Her Majesty in right of Canada, the application process and the supporting documentation a foreign charity has to submit, see Guidance CG-023 Foreign charities that have received a gift from Her Majesty in right of Canada.

Issuing official donation receipts

A foreign charity that is a qualified donee can issue official donation receipts for income tax purposes.

Before issuing an official donation receipt, a qualified donee must determine whether it has received a gift for the purposes of the Act and the eligible amount of the gift. For more information, go to What is a gift? and see Pamphlet P113, Gifts and Income Tax.

The information on an official donation receipt must be legible and shown in a way that cannot be easily altered. Each receipt must include:

• a statement that it is an official receipt for income tax purposes
• the name and address of the qualified donee
• a unique serial number
• the location where the receipt was issued (for example, the city, town, municipality)
• the date the gift was received
• the date the receipt was issued
• the full name, including middle initial, and address of the donor
• the amount of the gift
• the amount and description of any advantage in respect of the gift
• the eligible amount of the gift
• the signature of an individual authorized by the qualified donee to acknowledge gifts
• the name and website address of the Canada Revenue Agency

If an official donation receipt is being issued for a non-cash gift (gift in kind), the amount of the gift must be its fair market value at the time the gift was made. The receipt must also include:

• a brief description of the property received by the qualified donee
• the name and address of the appraiser (if the property was appraised)

Books and records

To maintain its qualified donee status, a foreign charity has to keep adequate books and records containing:

• information to allow the CRA to verify amounts that donors can claim for tax credits or deductions

• information to allow the CRA to confirm that the foreign charity meets the requirements for qualified donee status

• a duplicate of each official donation receipt issued, containing prescribed information for the gift received

A registered foreign charity is not required to keep its books and records in Canada, but must make them available in Canada at the CRA’s request.

Books and records include, but are not limited to:

• financial statements supporting any official donation receipts that are issued

• source documents such as cancelled cheques and bank deposit slips.

For more information about keeping proper books and records, including the types of records that should be kept, retention periods, and electronic records, see Keeping Records.

Suspension and revocation

A foreign charity may have its qualified donee status suspended or revoked by the CRA if it:

• fails to keep books and records supporting the official donation receipts it issues, or fails to provide these to the CRA on request

• is involved in the improper issuing of donation receipts; or

• accepts a gift or transfer of property on behalf of a suspended qualified donee

If a foreign charity’s qualified donee status is suspended, it cannot issue official donation receipts for one year. During that period, registered charities cannot make gifts to it. While under suspension, if offered a gift, the foreign charity must inform the potential donor about its suspension, as well as the fact that the donor cannot receive an official donation receipt at any time for a gift made during the suspension.

A foreign charity’s qualified donee status can also be revoked if it no longer meets the requirements for registration, or if it asks for voluntary revocation.

A revoked foreign charity is no longer a qualified donee.

Judicial review and objections

If the CRA does not register an applicant as a qualified donee and the applicant disagrees with the decision, the applicant may take formal recourse by filing an application for judicial review with the Federal Court of Canada within 30 days of the date it received the CRA decision. For more information about this process, go to Judicial review.

A foreign charity that receives a notice from the CRA suspending its qualified donee status or proposing to revoke its registration can file an objection if it disagrees with the CRA’s decision. The time limit for filing an objection is 90 days from the date on the notice. The objection must be in writing and provide the reasons for the objection and all the relevant facts. For more information about this process, go to Objections and appeals.

References

• Income Tax Regulations, C.R.C. 1978, c. 945, ss. 3501(1.1): content of receipts

• Income Tax Act: deduction/credit, 110.1(1), 118.1(1); definitions, 149.1(1) and 149.1(26); revocation, 149.1(4.3); public information, 149.1(15)(b); notice of revocation, 168(1); penalties, 188.2; objection, 168(4) and 189(8); and books and records, 230(2).

• Federal Courts Act R.S.C., 1985, c. F-7: judicial review, s. 18.1

Date modified:

2016-06-16