Acting as a conduit violates the Income Tax Act and could jeopardize a charity’s registered status.”2 The practical application of this CRA definition is that the charity should have a predetermined cap on the honorarium based on the value of the speaker’s service, even if money raised is in excess of what’s needed to fund it, as would be addressed by the charity’s Donor Restricted Gift Policy.3 . [...] If the employer is a qualified donee (i.e., a Canadian registered charity), the church can accept donations for the qualified donee organization, receipt them, and forward the money to the organization. [...] money] or other resources of the charity to a person who does not deal with the charity at arm's length or who is the beneficiary of a transfer because of a special relationship with a donor or charity).”6 The church should consider, instead, sending the funds to the missionary’s employer to aid that organization in covering the missionary’s salary and the travel expenses associated with their fu. [...] Instead, individuals can donate directly to the non-qualified donee charity7 or take a separate collection not to be handled by the church but instead to be entrusted to the representative or others for transfer to the non-qualified donee charity. [...] This is another variation on the conduit discussion above and, as a directed gift, is specifically prohibited by CRA, as stated here: “Did the donor ask for the gift to be directed to a specific person, family, or other non-qualified donee? A donor cannot choose a specific beneficiary for their gift or ask the qualified donee to give the gift to another non-qualified donee.”10 REIMBURSEMENT ELEM.
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