In response to the devastating earthquake that hit Nepal on April 25, 2015, the Government of Canada has created the Nepal Earthquake Relief Fund (the “Fund”). On April 27, 2015, the Minister of International Development and the Minister of Foreign Affairs announced that the Government will match eligible monetary donations dollar for dollar by contributing an amount equivalent to those eligible donations to the Fund. To be eligible, donations must be:
The announcement by the government states that the Fund is a separate fund from the funds raised by charities and will be used, “to provide financing to international and Canadian humanitarian and development organizations responding to the disaster, through established Foreign Affairs, Trade and Development Canada (DFATD) channels and procedures.” Since the charity that receives the original donation in support of earthquake relief in Nepal will not have control over how the matching funds are used, it appears as though this fund is meant more to encourage the broader fundraising effort in Nepal than to help specific charities with their ability to respond to the crisis in Nepal. Why the Government is better situated to determine the allocation of the Fund than registered charities with experience in providing international relief and already responding to the earthquake through donations they receive is not clear.
The announcement also contains information on how individuals fundraising on behalf of an organization, such as a school or faith group, can make sure funds donated to a registered Canadian charity on behalf of the organization will be matched in the Fund.
Registered charities receiving eligible donations in response to the Nepal earthquake are required to complete a form declaring the amount of eligible donations that the charity has received and submit this form to DFATD by June 12, 2015 in order to ensure that donations they receive will be matched by the Government to the Fund. Charities can do so by completing the Nepal Earthquake Relief Fund Declaration Form, which will be made available on the DFATD website.
It is also interesting to note that the Government’s initial $5 million contribution pledged on April 25, 2015 will count towards the matching funds. This appears to mean that the Government will not have to contribute any new funding until after individual Canadians have donated in excess of $5 million in eligible donations to registered charities.
Terrance S. Carter, B.A., LL.B, TEP, Trade-mark Agent – Managing Partner of Carters, Mr. Carter practices in the area of charity and not-for-profit law, is counsel to Fasken Martineau on charitable matters. Mr. Carter is a co-author of Corporate and Practice Manual for Charitable and Not-for-Profit Corporations (Carswell), a co-editor of Charities Legislation and Commentary (LexisNexis Butterworths, 2015), and co-author of Branding and Copyright for Charities and Non-Profit Organizations (2014 LexisNexis Butterworths). He is recognized as a leading expert by Lexpert and The Best Lawyers in Canada, and is Past Chair of the CBA National and OBA Charities and Not-for-Profit Law Sections. He is editor of www.charitylaw.ca, www.churchlaw.ca and www.antiterrorismlaw.ca.
Ryan Prendergast, B.A., LL.B. - Ryan Prendergast, B.A., LL.B. - Called to the Ontario Bar in 2010, Mr. Prendergast joined Carters with a practice focus of providing corporate and tax advice to charities and non-profit organizations concerning incorporation, ongoing corporate compliance, anti-spam compliance, registration of charities, audits and internal appeals with Canada Revenue Agency, as well as the amalgamation and merger of charities. Ryan is a regular speaker and author on the topic of directors’ and officers’ liability and on the topic of anti-spam compliance for registered charities and not-for-profit corporations. In addition, Ryan has contributed to The Lawyers Weekly, several Charity Law Bulletins and other publications on www.charitylaw.ca.
