Changes Coming to Charitable Registration Application Process
In late June 2017, the Canada Revenue Agency (“CRA”) sent an email to key stakeholders announcing a number of upcoming changes to the charitable registration process. In the email, the CRA announced that the Charities Directorate would no longer review applications submitted with draft governing documents. Such applications would be considered incomplete and returned to the applicant. The CRA also recommended that trust documents include a clause allowing trustees to amend or alter the purpose(s) of the trust in order to meet the legislative and common law requirements for charitable registration. As well, if an applicant believes that the purposes in its governing documents do not accurately reflect its programs, proposed purposes can be included in the application, along with its current certified governing documents. These changes will come into effect July 1, 2017.
Famine Relief Fund
On May 29, 2017, the Government of Canada launched the Famine Relief Fund (the “Fund”). Eligible donations made to registered charities between March 17 and June 30, 2017 will be matched by equivalent contributions by the Government of Canada to the Fund. The contributions made by the Government of Canada are directed towards the Fund rather than the charities that receive donations from the public. The intention of the Fund is to engage Canadians in responding to the humanitarian crises in Nigeria, Somalia, South Sudan and Yemen where millions are at risk of starvation. Because the humanitarian crises have regional implications, the Fund also matches donations for relief activities in Cameroon, Chad, Niger, Ethiopia, Kenya, and Uganda. The Fund will be used to support experienced Canadian and international humanitarian organizations using established Global Affairs Canada channels and procedures.
To be eligible to be matched by the Government of Canada, donations must be: made by individuals; monetary in nature (i.e., not in-kind donations); not exceeding $100,000 per individual; made to a registered charity that raises money for the above-noted humanitarian crises; specifically earmarked in response to the crises; and made between March 17 and June 30, 2017. Charities receiving eligible donations will need to complete the Famine Relief Fund Declaration Form and return it to Global Affairs Canada by July 7, 2017, in order to have the eligible donations matched by the Government of Canada and contributed towards the Fund. It is up to the registered charities to certify that the donations declared are eligible. The Famine Relief Fund is separate from the funds raised by charities and is administered by the Government of Canada. This means that charities do not receive a matching dollar from the Government of Canada for each dollar that they report.