The CRA recently wrote a letter in French on whether charitable foundations are allowed to make gifts to section 501(c)(3) US charities, because of paragraph 7 of article XXI of the U.S. Tax Convention? The CRA answered no. Their reason is that American charities are not deemed to be qualified donees under paragraph 7 of article XXI of the Canada-U.S. Tax Convention.
Here is a copy of the CRA letter on whether a charitable foundation is allowed to make a gift to a US charity [in French].
Here are a number of other CRA letters that deal with article XXI of the Canada-U.S. Tax Convention. http://www.canadiancharitylaw.ca/index.php/blog/comments/various_cra_letters_on_article_xxi_of_the_canada-us_tax_treaty/
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.