INTERNATIONAL
DONATIONS
Supporting International
Charitable Activities
Kate Lazier, Associate
Miller Thomson LLP
IIn addition to supporting Canadian
charities, many Canadians support
charitable activities aboard. While
Canadians may give to any foreign charity,
not all donations are eligible to receive a
Foundation for Canadian Studies in the Request a Receipt
United Kingdom, and Woodrow Wilson
When making a gift to a foreign
International Centre for Scholars. The list
organization it is important that the donor
is updated periodically and can be found
request a receipt in order to claim the tax
online at http://www.cra-arc.gc.ca/E/pub/
break. The receipt must provide the same
charitable tax credit or deduction. This tp/ic84-3r5-attach/ic84-3r5attach-e.pdf.
information required on a Canadian
article reviews the three options available
Foreign Universities
charity’s receipt minus the charitable
to Canadian residents seeking to support
registration number. Samples of qualifying
international charitable activities in a tax
Taxpayers can receive a credit for gifts
receipts are available online at http://
effective manner:
to prescribed universities that ordinarily
www.cra-arc.gc.ca/tx/chrts/pbs/rcpts-eng.
1) Giving to certain foreign
include Canadians among their student
html.
organizations,
bodies. The numerous foreign universities
2) Giving to charities in the United
that qualify for this tax incentive are listed
Canadian Charities Working Abroad
States, and
in Schedule VIII of the Income Tax Act
Many Canadian charities carry on
3) Giving to Canadian charities carrying
Regulations. If a university is not listed,
charitable activities abroad. The Canadian
on activities abroad.
then it can apply to be added.
Donor’s Guide lists organizations carrying
Gifts to Foreign Organizations
Gifts to Charities in the United States
on such work on page 35. Donations to
these organizations qualify for a tax credit
The Income Tax Act allows residents to
The Canadian-U.S. Income Tax Treaty
or deduction and can be used by the
claim a tax incentive for gifts made directly charity to carry out international activities.
provides that Canadian residents can
to certain foreign organizations. These
receive a credit or deduction against the
Further Options
organizations include: the United Nations,
resident’s Canadian taxation on US income
United Nations Agencies, foreign charities
for gifts made to US charities. The CRA
If the charitable cause a donor wants
with Crown patronage and prescribed
recognizes gifts made to US resident to support is not covered among these tax
foreign universities.
organizations that qualify under section effective choices, a donor may work with
Foreign Charities with Crown
501(c)( 3) of the US Internal Revenue
an existing charity to take on a new
Patronage
Code. If the gift is made to a US-based
activity or the donor may establish a new
college or university where the donor (or
Canadian charity. Charity lawyers can
If the government has made an official
a family member) is enrolled, or is a
help donors fulfil their philanthropic
gift to an organization during the
graduate of that university, then the credit
goals by evaluating these options.
taxpayer’s taxation year or the previous
or deduction is not limited to the donor’s
year, then the taxpayer can claim a credit
US income.
for a gift to the organization. The Canada
Kate Lazier provides both general legal
Revenue Agency (CRA) document IC84-
Individuals who commute to the US
counsel and specialized tax advice to
Canadian and international charities and
3R5-ATTACH lists the organizations that
for employment or business, and whose
not-for-profits. She is a frequent writer
have officially received a gift from the
chief source of income is that employment
and speaker on charity law and editor of
Crown in the past decade. The
or business, can treat a gift to a US
Miller Thomson’s Charities and Not-for-
organizations that received a gift in 2008
religious, charitable, scientific, literary, or
Profit Newsletter and the Ontario Bar
included: Aga Khan Foundation, Aga
educational organization as if it were a gift
Association’s Charity and Not-for-Profit
Khan University Foundation, Council for
to a Canadian registered charity and claim
Section newsletter.
Canadian American Relations, Inc., The the normal tax credit or deduction.
