Policy priority: charities to partner with non-charities
Rules aimed at protecting public and charitable funds make it difficult for charities to partner with non-charities, resulting in equity-seeking communities having less access to these funds.
Charities are able to gift their resources to ‘qualified donees’, a term which includes registered charities, municipalities, and other entities that are able to issue donation receipts. If a charity wants to partner with and provide resources to any entity that isn’t a qualified donee, direction and control rules apply.
Having charitable or “qualified donee” status is less common for groups in some equity-seeking communities. This results in many equity-seeking groups having less access to charitable funds.
Direction and control requirements exist in tension with Canadian international development policy and contemporary international development values (e.g., local ownership and participative and inclusive decision-making.
That Bill S-216, The Effective and Accountable Charities Act, be passed into law. Introduced by Senator Ratna Omidvar in November 2021, the Bill would amend the Income Tax Act to enable charities to establish equal partnerships with non-charities while still ensuring accountability and transparency.
Imagine Canada and Philanthropic Foundations Canada, 2022
Imagine Canada, 2022
Special Senate Committee on the Charitable Sector, 2019 - recommendation 30
The Pemsel Case Foundation, 2015 - 2019
Cooperation Canada, 2019)
Ontario Nonprofit Network, 2021
Advisory Committee on the Charitable Sector, 2021) - recommendation #1