Can a charity that receives a donation of medicines for the purpose of the tax incentive transfer those medicines to another organization?
A. The proposed regulations stipulate that medicines received by the charity must be either delivered outside Canada for use in its charitable activities or transferred to another Canadian registered charity that is also designated by the Minister of International Cooperation as a donee of gifts of medicines. A registered charity wishing to deliver medicines outside of Canada must retain direction and control over its resources and be an active participant in a program or project that directly furthers its charitable purposes. A registered charity can fulfill this requirement through persons under its immediate control (e.g., its directors/trustees, officers, employees and volunteers) or through intermediaries. Intermediaries are organizations or individuals with whom a registered charity maintains a real, ongoing, and monitored relationship to perform specific, well-defined activities. The onus is on the charity to demonstrate that it has retained direction and control over its interm
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