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 By law, the Foundation may provide funding only to registered charities. An organization becomes a charity only after successfully applying to the Canada Revenue Agency for that designation. A registered charity is able to issue receipts that allow donors to claim the tax credit for charitable donations. Being a charity is different than being a not-for-profit organization or a society. Many groups incorporate under provincial statutes and become not-for-profit organizations. While this exempts them, in most cases, from paying any tax on their earnings, it does not make them charities. For more information about becoming a charity, contact the nearest office of the Canada Revenue Agency (CRA). You can also obtain information from the Agency's Web site, located at http://www.cra-arc.gc.ca. Where a charity wishes to use another organization to carry out
an initiative for which it is seeking funding, it should review
the CRA's rules on agency relationships and, if necessary, seek
legal advice. In appropriate cases, the Foundation will provide
grants for this type of situation, but its review will include both
the charity and the other organization.
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