As a public foundation, the community foundation is restricted by the Income Tax Act to make grants or distributions only to registered charitable organizations. CCRA has recently requested that the relationship between the charity (lead partner) and the non-charitable organization (the agent) be formalized and documented before a grant can be awarded.
An organization that is not a registered charity wishing to apply for funding from the community foundation may consider the following:
Guidelines for a registered charity acting as a principal or partner are attached on Schedule 1.
An example of a contract provided by CRA is attached as Schedule 2.
Better together guide is another helpful resource in understanding charitable sponsorships.
For further information on becoming a registered charity or on establishing an agency relationship, please contact:
Canada Customs & Revenue Agency