Charity Bylaws and Minute Book

Can a Canadian Charity Operate outside of Canada?

Absolutely. A Canadian charity may operate abroad either through:

a) using its own personnel and resources; or

b) through a 3rd party, like a foreign-based NGO or charity.

However, a Canadian charity cannot simply transfer funds from Canadian donors to a foreign charity or NGO (not registered as a charity in Canada). Instead, the Canadian charity must be the one operating its own activities, with the foreign NGO being the “arm,” executing the Canadian charity’s activities. In other words, the Canadian charity must have control of its assets at all time and directly control all of its foreign activities.

When operating internationally through a 3rd party NGO, there are generally 4 arrangements employed by Canadian charities to retain control and direction of the activities, as follows:

1. Cooperative Partnership Agreements: If the parties are contributing different resources to a project, for example, the Charity registered in Canada is contributing money and material, while the foreign NGO is contributing personnel and expertise, a cooperative partnership agreement would be used.

2. Joint Venture Agreements/Joint Ministry Agreements: Where the Canadian charity and the 3rd party intermediary are pooling resources, the agreement would be a joint venture agreement.

3. Agency/Contractor Agreements: Where the Canadian charity is funding 100% of a project abroad, being carried out by the non-Canadian charity, the agreement would be either an agency or contractor agreement.

4. Canadian employees or volunteers of the Canadian charity directly working abroad: An employment agreement or volunteer agreement is used where the Canadian charity is sending employees or volunteers abroad.