Residency Requirements for Directors of Canadian Charities
Q. I’m starting a charity, but my prospective Directors are all US and European residents. Is that ok?
Short answer: Generally, yes.
Comprehensive answer: Aside for Charities that are governed by a Trust, there is no legal requirement that Canadian Charities have resident Canadian directors.
However, where a majority of a charity’s directors are non Canadian residents, it will raise a red flag to the CRA whether the Charity really has direction and control over its activities.
Bottom line, your Charity’s Board of Directors could technically consist of all non Canadian residents, but it is not recommended.