If a registered charity prefers to transfer funds to other
organizations rather than use them on its own programs, it can
only transfer such funds to "qualified donees". Under
the Income Tax Act, "qualified donees" are registered
charities, registered Canadian amateur athletic associations,
registered national arts service organizations, housing corporations
resident in Canada constituted exclusively to provide low-cost
housing for the aged, the United Nations and its agencies, universities
outside Canada listed in Schedule VIII of the Income Tax Regulations,
charitable organizations outside Canada to which Her Majesty
in right of Canada (the federal government or its agents) has
made a gift during the charity's fiscal period or in the 12 months
immediately preceding the period, municipalities in Canada; and
Her Majesty in right of Canada or in right of a province (that
is, the federal government, a provincial government, or their
agents).
