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Proactive Disclosure
FAQs
Are only registered Canadian charitable organizations eligible to receive these donations of medicines?
Charities receiving these donations of medicines must be Canadian registered charity. In addition, the registered Canadian charity must demonstrate, to the satisfaction of the Minister of International Cooperation, that it meets the conditions stipulated in the regulations. A registered Canadian charity interested in being found eligible must demonstrate that it
- acts in a manner consistent with the principles and objectives of the interagency Guidelines for Drug Donations (PDF) issued by the World Health Organization.
- has sufficient expertise in delivering donated medicines for use in its charitable activities to the developing world;
- carries on an international development program and/or an international humanitarian assistance program, which includes the delivery of medicines, in a manner consistent with recognized best practices.
Please note that there are two eligibility streams: Stream 1 is for Canadian registered charities that deliver medicines outside of Canada as part of an international development program; Stream 2 is for Canadian registered charities that deliver medicines outside of Canada as part of an international humanitarian assistance program. Charities can apply for eligibility under either stream, or both streams.
More information can be found on the Eligibility page.
Does an organization delivering drugs internationally, or wishing to do so, need to be found eligible by the Minister of International Cooperation?
A health officer counts pills in her home office in Ladera, India
If the application submitted by my organization includes all of the documents requested on the List of Requested Documentary Evidence, including the appendices, does that guarantee my organization will be found eligible? Similarly, if the application does not include all of the requested documents, will my organization be found ineligible?
Applications should be as complete as possible. However, the legal requirements of eligibility of charities are set out in the regulations. The application will be looked at in light of all evidence provided. The Minister will determine if the applicant has met the conditions set out in the legislation and regulations. Please note that the Minister of International Cooperation may rely on any information or evidence in making a determination and may require the applicant to provide any information or evidence, in addition to that which is provided in the application, that the Minister considers relevant for that purpose.
Can a charity that receives a donation of medicines for the purpose of the tax incentive transfer those medicines to another organization?
The 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 eligible under the Donations of Medicines Eligibility Program. 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 intermediaries.
For more information please visit the Charitable activities page on Canada Revenue Agency's Web site.
Why has CIDA become involved in determining who is eligible to distribute medicines in developing countries?
The Government of Canada believes that CIDA is best placed to evaluate charities active in development assistance and international humanitarian assistance activities.
The 2007 federal budget introduced an incentive for corporations to participate in international programs for the distribution of medicines. This tax incentive measure allows corporations that make donations from their inventory to claim a special additional deduction equal to the lesser of:
- 50 percent of the amount, if any, by which the fair market value of the donated medicine exceeds its cost; and
- the cost of the donated medicine.
Originally the program was only available when the registered charity had received a disbursement under a program of CIDA. Through consultations, the Government of Canada decided, given the potential risk of this type of activity, that it wanted greater safeguards to ensure that medicines donated as part of this tax incentive were delivered in a way that respected international standards. As such, the 2008 federal budget amended the definition of an eligible charity. The new requirement is that donations provided after July 1, 2008, could only receive a tax receipt for the new incentive if the drugs were donated to registered Canadian charities assessed as eligible by the Minister of International Cooperation. The Minister bases her decision on the conditions that are outlined in the regulations. The main purpose of these conditions is to ensure that eligible charities:
- act in a manner consistent with the principles and objectives of the interagency Guidelines for Drug Donations (PDF) issued by the World Health Organization;
- demonstrate appropriate expertise in delivering medical donations to the developing world; and
- have implemented appropriate policies and practices with respect to the delivery of international development and humanitarian assistance.
More information about this tax incentive can be found through the following Department of Finance Canada budget documents:
The regulations related to this program received Royal Assent on March 12, 2009.
What are the WHO Guidelines?
The WHO Guidelines are the interagency Guidelines for Drug Donations issued by the WHO. They were developed by the WHO in cooperation with the major international agencies active in humanitarian relief. The WHO Guidelines describe the common core of "good donation practice" with respect to donations of medicines.
These guidelines aim to improve the quality of drug donations through a set of 12 articles that are based on 4 core principles: the donations provide maximum benefit to the recipient, the donations respect the wishes and authority of the recipient, there are no double standards in quality, and there is effective communication between donor and recipient. The 12 principles deal with the selection of drugs; quality assurance and shelf life; presentation, packing, and labelling, and information and management.
More information is available in the WHO Guidelines (PDF).
How long should I expect to wait before hearing whether or not my application was successful?
Please expect a minimum of eight (8) weeks between the receipt of your application and a response from CIDA regarding eligibility.
In which countries can these medicines be distributed? Am I restricted to working only in CIDA's partner countries?
Medicines can be delivered to any country where there is a demonstrated need and a request from that country's government, as per the WHO Guidelines (PDF).
When can my organization apply?
Your organization can apply at any time.
Can eligibility be revoked?
Yes. The Minister of International Cooperation can revoke the eligibility of a registered charity at any time at his or her discretion.
If you have questions about eligible charities or any other questions about this program, please do not hesitate to contact us.
PDF Format
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Guidelines for Drug Donations (PDF 72 KB, 24 pages)
