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Member Advisory – CRA’s Draft Guidelines for Granting to Non-Qualified Donees and PFC’s Preliminary Assessment

The 2022 Federal Budget introduced a new framework for partnerships in the charitable sector called “qualifying disbursements.” It allows registered charities to make “qualifying disbursements” to both qualified donees and non-qualified donees (NQDs), provided certain requirements are met. Disbursements to non-qualified donees must be to further the charity’s charitable purposes and the charity must allocate funds for charitable activities carried out by the grantee, with reasonable records kept to demonstrate this.

The Canada Revenue Agency released their draft guidelines for grants to NQDs on November 30. The CRA is requesting feedback by January 31.

Check out PFC’s preliminary assessment of the guidelines.