BEFORE YOU START

Grants to Non-Qualified Donees (NQDs) require some additional processing than those to Qualified Donees. These additional steps ensure that the grant meets the guidance of the Canada Revenue Agency’s guidance for registered charities making grants to Non-Qualified Donees. This process was designed to ensure compliance to this guidance and to mitigate risk for both MakeWay and the grantee.

What is a non-qualified donee?

A Non-Qualified Donee (NQD) is any entity that is not a registered charity or other qualified donee according to the Canada Revenue Agency (CRA). Qualified donees include certain municipalities, some registered journalism organizations, athletic associations, universities, international organizations, etc. Before staring an NQD grant process, check whether the grantee in a qualified donee:

• To find out whether an organization is a registered charity, click here.
• To learn about & search for other qualified donees, click here. 

If an entity does not appear on any of the CRA lists, they are likely a Non-Qualified Donee. NQDs can include non-profits, Indigenous governments, businesses, and individuals. If you are not sure about the status of an applicant, contact [email protected].

To which types of NQDs can MakeWay grant?

Currently, MakeWay only makes NQD grants to incorporated non-profits and Indigenous governments within Canada.

What can NQD grants support?

Grants to NQDs must be made for project-specific work, and never for general support of the grantee organization. The grant term and scope of the work must be clearly described, and must fulfill one or more of MakeWay Charitable Society's charitable purposes (which are listed on the proposal & screening form). Grants to NQDs cannot support capacity-building unless it is shown that the capacity advances the charitable purpose(s) and only the charitable purpose(s). Likewise, grants to NQDs can only be used to purchase capital assets if it is shown that the asset will advance the charitable purpose(s) and only the charitable purpose(s) throughout the life of the asset.

MAKING THE GRANT

1. Proposal Form

The first step is for you OR the grantee to complete the proposal and screening form. Please note that the first section (proposal) is to be completed by you or grantee can complete the first section (proposal). Only MakeWay staff may complete the second screening section, labelled "MakeWay Internal Use only."

2. Compliance Review

Once the proposal form is complete, send the form to the Compiance Manager (currently Jade Wallace [email protected]) for compliance review. They will review the proposal for risk, compliance with the Income Tax Act and CRA guidelines, and fit with the charitable objects of MWCS. Please allow 2-3 business days for compliance review. If the compliance reviewer has any questions, concerns, or suggested edits, they will contact you.

3. Granting

Once the compliance review is complete, the reviewer sends the approved proposal form along to the grants administrator to process. The grants administrator does all the data entry, gets the needed approvals, and generates reporting templates and the grant agreement letter (GAL). When the GAL is sent to the grantee, the person who recommended the grant is also CCed. All NQD grant agreements, regardless of amount, must be signed by the grantee prior to being paid.

REPORTING

Unlike grants to qualified donees, grants to NQD require reporting in all instances. This is an important tool that allows MakeWay to have - and demonstrate to CRA - proper oversight of the grant and ensure that the grant funds were used only for the charitable purposes stated on the grant agreement. At minimum, grants to NQDs require annual financial and narrative reporting, with a final financial and narrative report when the project is completed. While programs may accept oral reports or other media for grants to qualified donees, the reporting requirements for NQDs are best met by using the designated NQD reporting template.

You are always welcome to reach out to Grant Data Coordinator Leo Leblanc ([email protected]) with any questions!