Notice regarding the non-profit nature of sponsorships
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Notice regarding the non-profit nature of sponsorships

Regulatory changes affecting collective sponsorship

January 5, 2016 – New regulatory provisions came into effect on December 24, 2015. They provide that:

  • A sponsoring group or organization may not profit from their undertaking to support sponsored persons. For example, they may not collect interest on a temporary investment deposited as security by the relatives of sponsored persons.
  • If the sponsor demands an amount to cover administrative expenses associated with processing a sponsorship, this amount may not exceed 1% of the amount necessary to provide for the basic needs of the sponsored person and members of his family based on the scales in effect.

    For example, in the case of an undertaking by an organization, the allowable administrative fees would be a maximum of $121 for an adult and $177 for two adults, based on 2015 scales. The scales are indexed annually.
  • Violation of the above provisions constitutes a criminal offence.

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Last modification : 2018-07-18
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