In April 2022, we reported on important changes
for charities arising from the 2022 Federal Budget. More recently,
on June 23, 2022, the Budget Implementation Act 2022, No.
1 (BIA 2022) received royal assent. Of
particular importance to Canadian registered charities is the BIA
2022's new qualifying disbursement rules. These new rules
provide an alternative option for charities to work with
non-charities.
The Old Regime
Prior to the amendment of the Income Tax Act (Canada)
(ITA) by the BIA 2022, a Canadian registered
charity (Charity) was only able to carry on its
"own charitable activities" or make gifts to qualified
donees (that is, Canadian registered charities and certain other
organizations that can issue Canadian tax donation receipts)
(QDs). As such, a Charity could not simply give
resources to foreign charities or non-profit organizations based in
or outside of Canada that were not QDs. Rather, any resources that
a Charity provided to non-QDs had to be
