The missing link seems to be on what the Income Tax Act defines as a qualified donee. As mentioned, the Canada-US Tax Convention opens up US registered charities as qualified donees provided they are a 501(c)(3) in good standing with the IRS. Using the 501(c)(3) registration as the backbone of our due diligence package ensures that the work we are supporting in the US is generally exempt from tax and would reasonably be considered tax-exempt in Canada. However, this convention only allows us to facilitate partnerships with US based organizations, or organizations who have a fiscal sponsor that is registered as a 501(c)(3).
Related to CHIMP specifically, we’re not in a place to comment on the financials of a given charity, but we have built in a variety of measures to ensure 100% of our donors’ donations will be passed onto our partner charities, such as:
We make sure that all of the funds raised for our partner charities come to us in cheque form before being distributed to our partners. We do this to ensure that CHIMP has disbursed the exact amount that matches our internal records, and we provide unique tracking codes for our partners to ensure the cheques reach their intended destination, in full.
We also follow up with a confirmation email from our partners to ensure the cheque was able to be deposited with no issues. We also provide our full donor analytics to our partner charities so they can confirm the amounts raised match their distribution.
RC Forward independently covers 100% of CHIMP’s fees out of our own operational budget. These funds are raised with the sole focus of covering operations costs and cross-border fees, which allows us to guarantee that 100% of a donation goes to the intended high-impact charity.
While we are aware of the links provided above, we don’t feel well-placed to comment on CHIMP operations beyond the scope of our specific, well-documented arrangement. We have yet to encounter a formal reason to reconsider this collaboration and take great care in working with organizations verified by the CRA. John Bromley (CHIMP CEO) was introduced to us at EA Global in 2017 and he seemed genuinely interested in supporting EA. RC Forward and our beneficiary charities have yet to have an experience that suggests otherwise. We look forward to maintaining our organizational relationship.
The missing link seems to be on what the Income Tax Act defines as a qualified donee. As mentioned, the Canada-US Tax Convention opens up US registered charities as qualified donees provided they are a 501(c)(3) in good standing with the IRS. Using the 501(c)(3) registration as the backbone of our due diligence package ensures that the work we are supporting in the US is generally exempt from tax and would reasonably be considered tax-exempt in Canada. However, this convention only allows us to facilitate partnerships with US based organizations, or organizations who have a fiscal sponsor that is registered as a 501(c)(3).
Related to CHIMP specifically, we’re not in a place to comment on the financials of a given charity, but we have built in a variety of measures to ensure 100% of our donors’ donations will be passed onto our partner charities, such as:
We make sure that all of the funds raised for our partner charities come to us in cheque form before being distributed to our partners. We do this to ensure that CHIMP has disbursed the exact amount that matches our internal records, and we provide unique tracking codes for our partners to ensure the cheques reach their intended destination, in full.
We also follow up with a confirmation email from our partners to ensure the cheque was able to be deposited with no issues. We also provide our full donor analytics to our partner charities so they can confirm the amounts raised match their distribution.
RC Forward independently covers 100% of CHIMP’s fees out of our own operational budget. These funds are raised with the sole focus of covering operations costs and cross-border fees, which allows us to guarantee that 100% of a donation goes to the intended high-impact charity.
While we are aware of the links provided above, we don’t feel well-placed to comment on CHIMP operations beyond the scope of our specific, well-documented arrangement. We have yet to encounter a formal reason to reconsider this collaboration and take great care in working with organizations verified by the CRA. John Bromley (CHIMP CEO) was introduced to us at EA Global in 2017 and he seemed genuinely interested in supporting EA. RC Forward and our beneficiary charities have yet to have an experience that suggests otherwise. We look forward to maintaining our organizational relationship.
Thanks for the response!