The Income Tax Act, Canada (the "Act") provides that
only "qualified donees" can issue official tax receipts
for gifts from individuals and corporations. Further, only
qualified donees are eligible to receive grant funding from other
Canadian registered charities.
Early in 2012 the Canada Revenue Agency (the "CRA")
indicated that it would require all "municipal or public
bodies performing a function of government in Canada" to
register with the CRA to become, or to remain, a qualified donee.
The CRA has finally announced details regarding the process for
registration. The deadline for registration is January
1, 2014. Only municipalities (and other public bodies) and
First Nations which register will be considered qualified donees
after that date. Registered municipalities, public bodies and
First Nations will be listed on the Charities Directorate's
website and we anticipate that this list will become an important
reference for grant-making entities.
