CHARITY LAW BULLETIN No.223

September 3, 2010
Editor: Terrance S. Carter

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GOVERNMENT OF CANADA FUND TO MATCH INDIVIDUALS' DONATIONS TO FLOOD RELIEF EFFORTS IN PAKISTAN

By Terrance S. Carter*

The Government of Canada has created the Pakistan Floods Relief Fund to help aid those affected by the disaster by matching donations made by Canadians to registered Canadian charities for this cause. 

However, it is important to note that registered Canadian charities that raise eligible funds will not actually receive a matching amount from the Government of Canada, but rather the Government will be making an equivalent donation to the Pakistan Floods Relief Fund, which fund will be administered separately by the Canadian International Development Agency (“CIDA”) and disbursed in the discretion of CIDA, not in accordance with the wishes or direction of either the donor or the registered charity.

For every dollar donated to relief efforts in Pakistan by individual Canadians to registered Canadian charities between August 2 and October 3, 2010, the Government of Canada will donate one dollar to the Pakistan Floods Relief Fund, subject to some limitations regarding eligibility of donations as explained below. Originally, only donations made by September 12, 2010 were to be eligible. However, it was announced on September 10, 2010 that the eligible donation deadline would be extended until October 3, 2010. As well, charities now have until October 18, 2010 to submit a prescribed declaration to CIDA indicating the amount of eligible donations they have received.

To be counted as eligible, the donation must comply with all of the conditions listed below. In this regard, the donation must be:

                     Monetary, up to $100,000

                     Made by an individual Canadian

                     Made to a registered Canadian charity that is receiving donations in response to the July-August 2010 flooding in Pakistan

                     Specifically earmarked by such organizations for the purpose of responding to the floods

                     Made between August 2 and October 3, 2010

For donors who want their donations to be matched by an equivalent donation from the Government of Canada to the Pakistan Floods Relief Fund, charities must ensure that the donation complies with the conditions set out above.  Donors need to also be assured that the charity intends to use the funds for flood relief efforts in Pakistan and that it will declare the funds to CIDA.

Both tax-receipted and non tax-receipted donations are eligible. Donations may be made by cash, cheque, money order, credit card, or wire transfer. Where donations are made by cheque, the cheque must originate from an individual’s personal bank account and not a business or corporate account.

As mentioned above, for donations to qualify for the fund, charities must report their eligible donations to CIDA no later than October 18, 2010 using the declaration form on CIDA’s website ( http://www.acdi-cida.gc.ca/acdi-cida/ACDI-CIDA.nsf/eng/ANN-820133234-NKW ).

CIDA will allocate the matching funds received from the Government of Canada to Canadian and international humanitarian and development organizations for humanitarian assistance, early recovery, and reconstruction efforts that benefit the people in Pakistan most affected by the floods.  Non-governmental organizations interested in applying for funding from the Pakistan Floods Relief Fund should consult the CIDA Guidelines for Emergency Humanitarian Assistance Project Proposals and Reports (http://www.acdi-cida.gc.ca/acdi-cida/acdi-cida.nsf/eng/STE-320155246-SKL).

More information regarding the Pakistan Floods Relief Fund is available on CIDA’s website (http://www.acdi-cida.gc.ca/acdi-cida/ACDI-CIDA.nsf/eng/ANN-820133234-NKW).



* Terrance S. Carter, B.A., LL.B., Trade-Mark Agent, is the managing partner of Carters Profession Corporation, and counsel to Fasken Martineau DuMoulin LLP. The author would like to thank Colin Thurston, B.A., J.D., for his assistance in the preparation of this Bulletin.

 

 

 


DISCLAIMER: This Charity Law Bulletin is a summary of current legal issues provided as an information service by Carters Professional Corporation. It is current only as of the date of the Bulletin and does not reflect subsequent changes in the law. The Charity Law Bulletin is distributed with the understanding that it does not constitute legal advice or establish the solicitor/client relationship by way of any information contained herein. The contents are intended for general information purposes only and under no circumstances can be relied upon for legal decision-making. Readers are advised to consult with a qualified lawyer and obtain a written opinion concerning the specifics of their particular situation.
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