By Raz Toor, Lawyer and Founder of Falcon Law PC
A Canadian charity does not have to limit its charitable work to Canada.
Canadian registered charities can fund and carry out charitable programs internationally. They may work with foreign organizations, support projects overseas and, where the legal requirements are satisfied, make grants to organizations that are not themselves Canadian registered charities.
But there is an important distinction at the outset: there is no special CRA registration category called an “international charity.”
The organization generally needs to be established and resident in Canada, qualify for registration as a Canadian charity, and then structure its international activities in accordance with the Income Tax Act and CRA requirements.
I’m Raz Toor, the founder of Falcon Law PC. We advise charities and non-profit organizations on incorporation, charitable registration, governance, by-laws and corporate changes, including organizations with international affiliations or activities.
Can a Canadian Charity Operate Outside Canada?
Yes.
CRA expressly recognizes that Canadian registered charities can conduct charitable activities both inside and outside Canada.
The location of the beneficiaries does not by itself determine whether an activity is charitable. What matters is whether the organization’s purposes are legally charitable and whether its resources are being used to further those purposes in a manner permitted by Canadian charity law.
For example, a Canadian charity may potentially provide poverty relief overseas, operate educational programs abroad, undertake religious activities internationally or support another type of charitable program benefiting communities outside Canada.
The legal structure becomes particularly important where the Canadian charity will transfer money or property to people or organizations in another country.
Can a Foreign Charity Simply Register With the CRA?
Generally, no.
To qualify for ordinary registration as a Canadian charity, an organization must generally be resident in Canada and established or created in Canada.
A foreign organization cannot normally take its existing foreign charitable entity and simply register that entity as a Canadian registered charity.
In practice, an international organization that wants an established Canadian charitable presence may consider creating a Canadian organization with its own governing documents, Canadian charitable purposes and Canadian governance structure.
That Canadian entity can potentially become affiliated with the foreign organization, but it must still satisfy Canadian charity law independently.
There is a narrow separate regime under which certain foreign charities that have received a gift from the Government of Canada can obtain temporary qualified-donee status. That is unusual and should not be confused with ordinary Canadian charitable registration.
Incorporation and Charitable Registration Are Different Steps
A Canadian organization may first be incorporated as a non-profit corporation, often federally under the Canada Not-for-profit Corporations Act or under applicable provincial legislation.
Incorporation creates the legal organization. It does not automatically make the organization a registered charity.
Charitable registration is a separate application made to the Canada Revenue Agency.
Until CRA approves the registration, the organization generally cannot issue official Canadian charitable donation receipts merely because it has been incorporated as a non-profit.
For the corporate side of the process, see our guide on how to register a non-profit organization in Ontario. For broader assistance, see our Non-Profit & Charity legal services.
The Charitable Purposes Need to Be Drafted Properly
The organization should not begin with a vague purpose such as “helping people around the world.”
CRA reviews the purposes contained in the organization’s governing documents and the activities that will actually be carried out to achieve them.
Canadian charity law generally recognizes four broad categories of charitable purposes: relief of poverty, advancement of education, advancement of religion, and certain other purposes beneficial to the community that are recognized as charitable at law.
The purposes should identify what the organization intends to accomplish and the charitable beneficiaries or public benefit involved.
Where the organization intends to operate internationally, I would normally want the charitable purposes and proposed programs to be drafted broadly enough to accommodate the intended geographic scope without becoming so vague that CRA cannot determine what the organization will actually do.
CRA Will Want to Understand the International Activities
For an organization planning activities outside Canada, the charity application normally needs to provide more than a high-level description of the mission.
CRA may want to understand where the programs will operate, who will benefit, who will carry out the work, how funds will move, how the Canadian organization will oversee the program and what relationships will exist with foreign organizations or individuals.
If arrangements or agreements with foreign partners already exist, those documents may form part of the registration review.
This is one reason I prefer developing the operational model before the CRA application is submitted rather than filing a generic charity application and trying to explain the international structure afterward.
How Can a Canadian Charity Work With a Foreign Organization?
Current Canadian charity law gives registered charities more than one way to operate internationally.
A charity can carry on its own charitable activities, including through employees, volunteers or an intermediary acting on its behalf.
If the Canadian charity uses a foreign intermediary to carry out the charity’s own activities, CRA’s direction-and-control framework remains relevant. The Canadian charity is expected to make the significant decisions about the activity, oversee the use of its resources and maintain sufficient records showing that the resources were used for the charity’s purposes.
But that is no longer the only model available.
Canadian Charities Can Now Make Certain Grants to Foreign Organizations
Canadian charity law changed significantly in 2022.
A registered charity can now make a qualifying disbursement in the form of a grant to a non-qualified donee, provided the statutory requirements are satisfied.
That can include an organization outside Canada that is not itself a Canadian registered charity.
Under this model, the Canadian charity does not necessarily treat the foreign organization as an intermediary carrying out the Canadian charity’s own program. Instead, the foreign organization may carry out the charitable activity as a grantee.
The Canadian charity must ensure that the grant is used exclusively for charitable activities that further the Canadian charity’s charitable purposes and must satisfy the applicable accountability requirements.
This distinction between an intermediary relationship and a grant relationship is important. Older materials sometimes describe direction and control as though it were the only possible way to work with a foreign non-charity. That is no longer an accurate description of the current legislation.
What Does Accountability for an International Grant Look Like?
CRA’s current guidance takes a risk-based approach.
The amount of due diligence, documentation, reporting and oversight that is appropriate will depend on matters such as the amount being granted, the nature of the project, the experience of the foreign grantee, the country involved and the risks associated with the activity.
For a substantial international project, a written grant agreement will usually be important.
The agreement can address the charitable purpose of the grant, permitted uses of the money, reporting, budgets, records, unused funds and the charity’s ability to respond if the funds are not being used as intended.
The object is not simply to produce paperwork. The Canadian charity needs to be able to demonstrate that charitable resources are actually furthering its charitable purposes.
A Canadian Charity Cannot Simply Act as a Fundraising Conduit
An international affiliation does not allow a Canadian charity to operate merely as the Canadian fundraising arm of a foreign organization without regard to Canadian charity law.
For example, suppose an overseas charitable organization establishes a related Canadian entity primarily so that Canadian donors can receive tax receipts. If the Canadian organization simply receives donations and automatically forwards them to the foreign organization, that structure can create serious problems.
The Canadian organization must itself satisfy the requirements applicable to registered charities and ensure that the use of its resources falls within one of the permitted methods under Canadian law.
Being part of the same international network does not remove that obligation.
International Affiliation Does Not Mean the Canadian Board Is Merely Ceremonial
A Canadian charity may share a name, religious tradition, mission or broader organizational affiliation with an organization abroad.
But the directors of the Canadian organization still have duties to the Canadian corporation.
They need to understand the Canadian charity’s finances, activities, agreements and use of resources rather than simply following directions from an overseas parent organization without independent consideration.
The relationship between the Canadian charity and any foreign affiliate should therefore be understood and documented.
Can a Non-Canadian Be a Director of a Canadian Charity?
Potentially, yes, depending on the corporate statute and the organization’s governing documents.
For example, the federal Canada Not-for-profit Corporations Act does not impose a general Canadian-residency requirement on directors. Its director qualification rules focus on matters such as age, capacity and bankruptcy status.
That does not mean every international governance arrangement is automatically appropriate.
The organization’s articles, by-laws, charity designation, decision-making structure and ability to satisfy its Canadian obligations should still be reviewed.
A Recent Governance Matter at Falcon Law PC
In 2026, we advised a Canadian registered religious charity with international connections on proposed governance changes.
Among the issues was the proposed appointment of a religious leader who was an Indian citizen to the Canadian charity’s board, together with amendments to the charity’s by-laws and broader governance questions relating to the Canadian organization.
The matter illustrates an important point for internationally connected charities: the organization can have meaningful relationships with people and organizations abroad while still requiring its own proper Canadian corporate and charity-governance framework.
The example above has been generalized to protect client confidentiality.
CRA Registration Is Based on What You Tell CRA You Will Do
Another point that is sometimes overlooked is that charitable registration is not a blank cheque to undertake any charitable-sounding activity in the future.
CRA considers the organization’s governing purposes together with the activities described in the application.
If a registered charity later introduces materially different programs, particularly programs outside the scope of its approved purposes, the organization should consider whether its governing documents or CRA position need to be revisited before proceeding.
In one charity registration file we reviewed, CRA’s registration letter expressly reminded the organization that the registration was based on the purposes in its governing documents and the activities described in its application, and cautioned that materially different future activities could put charitable status at risk. :chatgpt-content-reference{index=”0″}
International Activities Create Additional Compliance Risk
Operating outside Canada can introduce legal considerations that do not arise in an entirely domestic charity.
The Canadian charity still needs to comply with Canadian law, but the program may also be affected by the laws of the country where the activity is carried out.
Sanctions, anti-terrorism laws and restrictions on sending funds to particular persons, entities or jurisdictions can also be relevant.
CRA specifically cautions charities that grants cannot be made to listed terrorist organizations, and Canadian charities remain subject to the broader prohibitions against financing or facilitating terrorism.
For higher-risk international programs, due diligence on the foreign partner and the destination of charitable funds is therefore more than a bookkeeping issue.
Books and Records Still Matter When the Work Happens Abroad
A Canadian charity needs proper books and records supporting its activities and use of charitable resources.
The fact that invoices, beneficiaries, staff or projects are located overseas does not relieve the Canadian organization of its Canadian record-keeping obligations.
The charity should be able to explain where its money went, what program was carried out and how the expenditure or grant furthered its charitable purposes.
International activities are also reported through the charity’s annual T3010 information return. CRA requires additional reporting where the charity carries on activities outside Canada or makes grants to non-qualified donees.
Should You Create a Canadian Charity or Simply Support an Existing One?
Not every international charitable project needs its own Canadian registered charity.
If the objective is simply to raise money in Canada for an established charitable program, it may be worth considering whether an existing Canadian registered charity already carries out the intended work and could become involved.
A new charity makes more sense where there is a genuine reason to establish a separate Canadian organization with its own governance, charitable purposes, programs and long-term operations.
Creating a charity also means accepting ongoing governance, accounting, CRA filing and compliance obligations.
Non-Profit or Registered Charity?
A Canadian organization planning international programs does not necessarily need charitable registration.
It can sometimes operate as a non-profit organization instead.
The major distinction is that a registered charity can generally issue official donation receipts and receives the specific tax treatment applicable to registered charities, but it must also comply with the more extensive rules imposed on charities under the Income Tax Act.
If issuing charitable receipts is central to the fundraising model, charitable registration may be important.
If the organization is primarily membership-based or its purposes do not fit within Canadian charitable law, a non-profit structure may be more appropriate.
For organizations already operating as non-profits, see our guide on changing a non-profit into a registered charity.
How Falcon Law PC Can Help
Falcon Law PC assists Canadian non-profits and charities with organizations that operate domestically and internationally.
Our work can include determining whether a non-profit or registered charity structure is appropriate, incorporating the Canadian organization, drafting charitable purposes and governing documents, preparing CRA charitable-registration applications, reviewing by-laws and governance structures, and advising on agreements with foreign organizations and international grant arrangements.
Where a project involves local foreign law, banking restrictions, sanctions, taxation or another country’s charity rules, appropriate advice may also be required in that jurisdiction.
You can learn more about our Non-Profit & Charity legal services in Canada.
Planning the International Structure Before Applying
For an organization intending to work internationally, I would not begin with the CRA application form.
I would begin with the actual operating model.
Who will run the Canadian organization? What charitable programs will it carry out? In which countries? Will the Canadian charity operate the programs itself, use intermediaries, or make qualifying grants to foreign organizations? How will money move? What reporting will the Canadian board receive?
Once those questions are answered, the Articles, charitable purposes, by-laws and CRA application can be drafted around the organization that actually intends to exist.
That usually produces a much stronger application than trying to design the international structure after charitable registration has already been obtained.
This article is intended for general informational purposes only and does not constitute legal, tax, accounting, sanctions, foreign-law or other professional advice. International charitable arrangements should be reviewed based on the particular organization, countries, activities, partners and movement of funds involved.