Policy priority: Direction and Control of partnerships
Rules aimed at protecting public and charitable funds made it difficult for charities to partner with non-charities, resulting in equity-seeking communities having less access to these funds. Thanks to successful advocacy in 2022, the regulations have changed.
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.
Amend the Income Tax Act to enable charities to establish equal partnerships with non-charities while still ensuring accountability and transparency. This amendment became law in June 2022 thanks to collaborative advocacy from the sector. In Fall 2022, Imagine Canada will keep the sector informed about the CRA Guidance document with all the new details.
The Philanthropist, 2022
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