Charity-to-Charity Gifts: Designated Donations and Spending Rules
Description
This episode explains the complexities of charity-to-charity donations in Canada, particularly focusing on "designated gifts".
It highlights that while simple donations between individuals are straightforward, financial transfers between registered charities, especially those that are "non-arm's length" (connected by shared governance or family ties), are subject to strict regulations.
The primary challenge for non-arm's length charities receiving funds is the requirement to spend non-designated gifts, with severe penalties for non-compliance.
To mitigate this, the discussion introduces designated gifts, which offer the recipient charity flexibility in spending.
This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario and across Canada with all their financial and tax filing needs, CRA compliance, and of course timely T3010 filings.
Hat tip to our friends at OrgHub.ca, a new, innovative software platform that provides not-for-profits and charities across Canada with a solid foundation for incorporation and streamlined corporate governance.
B.I.G. Charity Law Group Professional Corporation
https://www.charitylawgroup.ca/
P: 416-488-5888
United States
