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My recent article published nationwide in Tax Topics (published by Wolters Kluwer), refers to new rules that seem to make it possible for a Canadian registered charity to have carried out its good works in a way that may be able to protect its endowments and other assets from unwanted liability.   In effect, the new rules on qualifying disbursements (in the Income Tax Act since 2022 and subject to guidance in late 2023 from the Canada Revenue Agency) seem to allow a charity to grant funds to a related corporation that actually carries out the activity in question.

Since for example Canadian private foundations are currently spending $ CAD 800 million per year on activities outside of Canada, much of this by philanthropists who have a desire for direct commitment to a cause important to them, trying in this way to use basic creditor protection appears logical.  Some more details are in my abovementioned article, which is at this link.

Please do not hesitate to contact me should you have any questions on this.