‘Major victory’ or disappointment? Mixed reviews on whether new CRA guidance will spur more granting to non-qualified donees

Author Gabe Oatley
Philanthropic Foundations Canada and the Ontario Nonprofit Network say the guidance is a significant policy win. However, a third sector association says it won’t likely prompt a new flood of money to non-qualified donees.

Why It Matters

Charity advocates celebrated in 2022 when the federal government changed the law, allowing foundations to grant to non-profits. However, new CRA guidelines suggest that many foundations must change their governing documents to benefit from the new latitude.

Charity and foundation sector associations are split over whether long-awaited guidance from the CRA makes it easier for non-profits and other non-qualified donees to be granted money.  The federal charity regulator’s guidance, published on Dec. 19, recommends interpreting changes made to the Income Tax Act in 2022, which newly allowed charities to grant to non-qualified donees, such as non-profits, grassroots groups or individuals (NQDs).

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