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alistairclark

7 karmaJoined Aug 2018

Comments
3

Thanks for the reply!

Everything makes sense up until this:

As a tax-exempt Canadian registered charity, CHIMP is able to facilitate cross-border grants composed of donor-advised funds. Since charities are not required to issue tax-receipts to other charities, this decision to only move charity-to-charity grants cross-border protects the Foundation from any disputes related to the issuance of charitable donation receipts to individual donors giving to non-qualified donees.

This seems to contradict the Canadian Income Tax Act:

According to the Income Tax Act, a registered charity can only use its resources (for example, funds, personnel, and property) in two ways, whether inside or outside Canada:
(1) on its own activities (those which are directly under the charity's control and supervision, and for which it can account for any funds expended)
(2) on gifts to qualified donees

Neither of these scenarios apply to what CHIMP is doing. Maybe I'm missing something?

P.S. In case you were wondering why I'm digging deeper on this question, here is some context. I fully support donating to EA and RC Forward, but I recently read a number of problematic stories about the CHIMP Foundation (linked below). I'm curious what you / the team think of these allegations.

Thanks for sharing this writeup. One follow-up question: what is the mechanism RC Forward / CHIMP uses to legally donate to organizations not registered as "qualified donees" in Canada? Is it a donation matching service like what Tides Canada used to do? Something else?

In the past I've just donated to international orgs without getting a tax deduction, so I'm curious to hear how you've gotten around those restrictions.

Thanks!