Summary Policy

Date
June 9, 2003

Reference Number
CSP - A12

Key Words
Agency (agent, agreement)

Under the Income Tax Act, a registered charity can carry on its charitable activities, both inside and outside Canada, in only two ways: it can make gifts to other organizations that are qualified donees or it can carry on its own charitable activities through intermediaries (e.g., employees, missionaries, agent or contractor).

When carrying on its charitable activities outside Canada, a registered charity must put in place a formal agreement with the intermediary and must be able to demonstrate that it retains direction and control over the use of its resources.

The above requirements also apply to registered charities that carry on their charitable activities through intermediaries inside Canada.

• Foreign Activities, CSP - F05.
• Qualified Donee, CSP - Q01.
• Resources, CSP - R13.
• Agency, CIL-1991-001, CIL-1993-001, CIL-1994-001, CIL-1995-004, CIL-1995-007, CIL-1995-013, CIL-1995-016, CIL-1997-003, CIL-1998-027, CIL-2002-013.
• Registered Charities: Operating Outside Canada, RC4106.
• Bayit Lepletot v. Canada (Minister of National Revenue) (2006 FCA 128), 2006-03-28 (http://decisions.fca-caf.gc.ca/en/2006/2006fca128/2006fca128.html)
• Canadian Committee for the Tel Aviv Foundation v. Canada (2002 FCA 72), 2002-03-01 (http:/www.fca-caf.gc.ca/index_e.shtml).
• Canadian Magen David Adom for Israel v. Canada (Minister of National Revenue) (2002 FCA 323), 2002-09-13 (http:/www.fca-caf.gc.ca/index_e.shtml).
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, para. 110.1(1)(a), ss. 118.1(1) and 149.1(1).