Canadian Charities and Foreign Activities

Summary

According to statistics from the 2006 T3010s, of the 83,223 registered charities that filed that year, 12,319, or 15%, identified themselves as carrying on programs directly or indirectly outside of Canada. These charities are in the forefront of dealing with many of the most difficult global problems, including HIV/ AIDS, human rights, access to education, and clean water and sanitation. Many donors have lived abroad and have a substantial attachment to causes and communities outside of Canada; many consider themselves "global citizens" and are motivated by the enormity of global problems; still others are impressed with the huge effect that their donations can have in a developing country-often many times greater than the same funds used at home. With the increasing value of the Canadian dollar, the impact of spending Canadian dollars abroad has dramatically increased. This article outlines the legal issues that may be faced by Canadian charities that are conducting or are interested in conducting programs outside of Canada. It discusses the statutory and regulatory framework for Canadian charities operating abroad, describes the permissible structured relationships and agreements, reviews a number of cases dealing with Canadian charities operating abroad, and highlights some of the challenges facing Canadian charities that have foreign activities.