What is a qualified donee?

On the Resources and FAQ pages of this website, we explain that grants from Benefaction donors can only be sent to registered Canadian charities or other qualified donees. But what is a qualified donee? And how can you tell if the organization you want to support falls into either of these categories? This article will answer these questions in detail.

Benefaction must restrict granting to registered Canadian charities and other permitted entities (“qualified donees”) as set out in the Income Tax Act. These organizations can issue official donation receipts and are eligible to receive gifts from registered charities, like Benefaction.

Following is a list of qualified donees, as per the Canada Revenue Agency (CRA):

1. Registered Canadian charities (other than private foundations): These organizations will have a 9-digit CRA Registration No. and can be searched for directly on CRA’s website with their List of Charities.

2. Registered Canadian amateur athletic associations: Also have a 9-digit CRA Registration No. and can be searched for in CRA’s List of Charities

3. Registered national arts service organizations. Qualifying organizations are created and resident and Canada and are formed and operated exclusively to promote the arts on a nation-wide basis.

4. Registered journalism organizations. Budget 2019 introduced tax measures to support Canadian journalism, including the creation of registered journalism organizations (RJO) as a new type of qualified donee. This change came into effect on January 1, 2020.

5. Certain non-profit housing corporations resident in Canada that are constituted exclusively to provide low-cost accommodation for the elderly: These organizations do not have a CRA registration number but the list of low-cost housing corps for the aged is provided on CRA’s website.

6. Universities outside Canada: This is not a blanket description for ANY university outside of Canada, but there is an extensive list of registered universities provided by CRA, divided by region.

7. Charitable organizations outside Canada to which the federal government has made a gift in the current calendar year or the previous calendar year: This category includes foreign charities who have received gifts from Her Majesty in right of Canada (the Government of Canada) and are therefore recognized as qualified donees in the current calendar or previous calendar year. A list of said organizations can also be found on CRA’s website.

8. Canadian municipalities, the federal or a provincial government, or their agencies: Like with categories 4-7, these organizations do not have the 9-digit CRA registration number but detailed lists of provincial municipalities or of municipal or public bodies performing a function of government in Canada are provided by CRA.

9. The United Nations or its agencies: This includes the general organization and any subsidiaries like the World Food Programme or the United Nations High Commissioner for Refugees.

So, you might be left wondering, what’s not included? Due to the current scope of the term “Charity” in Canadian common law, many non-profit organizations who do important work in their communities are not considered qualified donees and therefore do not meet the criteria to be eligible for grants from Benefaction. There is movement in our sector for the definition of charity to be expanded, which we fully support.

In addition, it is worth mentioning that Benefaction will not approve grants to satisfy any private benefit such as membership dues or fees, tuition, or goods purchased at a charitable organization, nor will we approve grants that support any political activities.

At Benefaction, we are committed to helping our donors find the right recipients for their grants. Our donors can always contact us for further assistance!