Charity Bylaws and Minute Book

Can Canadian Charities Operate Outside of Canada?

Yes.  There are thousands of Canadian charities who legally operate outside of Canada.

 

Canadian charities can execute charitable activities in only one of three ways:

 

1. Conduct their own activities.

 

2. Send funds or assets to another registered charity. (The Income Tax Act refers to Registered Charities as "Qualified Donees").

 

3. Use intermediaries, such as agents and partners, to implement the charity's mandate. A Charity using an agent must show "direction and control" over its funds and assets. 

 

A Canadian charity may not send funds to a non-charity. The only exception is if it has the requisite agreements that show "direction and control". 

 

There are generally six types of "agreements" a Canadian charity can use to send money to a non-charity:

  1. An Agency Agreement;
  2. A Contractor Agreement;
  3. A Joint Venture Agreement;
  4. An Employment Agreement;
  5. A Volunteer Agreement;
  6. A Cooperative Partnership Agreement.

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