How Canadian Charities Can Fund International Work: CRA Rules & Legal Requirements

The episode outlines the legal framework governing Canadian charities seeking to fund or conduct operations internationally.

It explains that the Income Tax Act (Canada) offers two primary pathways for global engagement: transferring funds to "qualified donees" or conducting the charity's "own activities" abroad.

The document details who qualifies as a "donee," including registered Canadian organizations, international bodies like the UN, and specific foreign entities.

Furthermore, it clarifies that conducting "own activities" internationally requires the Canadian charity to maintain ultimate control and oversight, often through structured arrangements like agency or contractor agreements with foreign partners.

The episode emphasizes the importance of due diligence and compliance with both Canadian and international laws to ensure effective and legally sound global impact.