AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Yes, but only in ways the CRA recognises. A registered charity can run its own charitable activities in Nigeria, including through an intermediary it directs and controls, give gifts to qualified donees, or, since the 2022 amendments to the Income Tax Act, make grants to Nigerian organisations that are not qualified donees if it meets accountability requirements. Grants above $5,000 to one grantee in a year must be named on the charity's T3010 return.
The rule in one line
A Canadian registered charity cannot simply wire money to a Nigerian school, clinic or NGO and call it charity. The CRA's guidance CG-032 (last modified December 2023) describes the routes a charity can use for its resources. Every naira that leaves the charity has to move through one of them.
| Route | What it means for a Nigeria project | Key obligation |
|---|---|---|
| Own charitable activities | The charity runs the project itself, with its own staff or volunteers in Nigeria | Records showing the charity carried out the work |
| Own activities through an intermediary | A Nigerian partner carries out the work, but the charity directs and controls it | Agreement, instructions and monitoring; covered by CRA guidance CG-002 |
| Gifts to qualified donees | Gifts to organisations on the CRA's qualified donee list | Most Nigerian NGOs are not qualified donees; check before relying on this |
| Grants to grantees | Grants to Nigerian organisations that are not qualified donees | Accountability: ensure exclusive charitable use and keep documentation |
Grants to Nigerian organisations since 2022
Bill C-19, which received royal assent on 23 June 2022, amended the Income Tax Act so that charities can make "qualifying disbursements" to grantee organisations. CG-032 says the charity must ensure the grant is exclusively applied to charitable activities that further its own purposes, and must keep documentation showing the grant's purpose and how the grantee used it.
The CRA recommends a five-step approach: link the grant to your charitable purpose, assess the risk, choose accountability tools to suit that risk, apply them with the grantee, and document everything. Tools include:
- A written agreement. CG-032 says one may not be necessary for one-off grants of $5,000 or less in very low-risk cases.
- A final written report from the grantee, with interim reports for longer or higher-risk grants.
- Paying in instalments rather than one lump sum.
- Asking the grantee to track the grant separately.
The CRA also notes that it has limited ability to monitor events outside Canada, so it relies heavily on the charity's own records. Grants abroad must also comply with Canadian law and public policy, and the charity should understand Nigerian laws affecting the grant.
Reporting on the T3010
If the total granted to one grantee in a tax year is more than $5,000, the charity reports the grantee's name, the purpose of each grant and the total amount on its T3010 Registered Charity Information Return. Grants of $5,000 or less per grantee are reported only as a count and total.
A worked example
Example: a Toronto charity whose purpose is advancing education wants to equip a library in a community school in Enugu State. It has three options:
- Run it as its own activity: a volunteer travels, buys the books in Enugu, and keeps invoices and photos.
- Use an intermediary: it signs an agreement with a local NGO setting out exactly what to buy and when, pays in two tranches and receives receipts before the second payment.
- Make a grant of $8,000 to the school's parent-teacher body: because this is above $5,000, the grantee is named on the T3010, and a written agreement and final report are expected.
Each route is lawful. What fails is the fourth option many groups default to: sending money to a cousin who "will sort it out" with no agreement or receipts.
Running an intermediary arrangement in practice
Many Canadian charities work in Nigeria through a local partner. Under the own-activities route the charity, not the partner, stays in charge, so the paperwork has to show that. CG-032 points to the CRA's separate guidance CG-002 for intermediaries outside Canada. In practice charities usually keep:
- A signed agreement naming the project, the budget lines and who decides changes.
- Written instructions for each stage, and the partner's acceptance of them.
- Reports with receipts, photos or attendance lists before the next payment is released.
- A record of any visit or call where the charity checked the work.
The difference from a grant is control. With a grant, the Nigerian organisation runs its own project and the charity holds it to account for how the money was used; with an intermediary, the charity directs the work step by step.
What to check first
- Is the project within your charity's registered purposes? A charity for poverty relief in Toronto cannot drift into building a church hall in Owerri without the right purposes.
- Is your organisation a registered charity, or only a non-profit? A non-profit association is not bound by these rules, but it cannot issue donation receipts. See registering a Nigerian association as a non-profit.
- Who on the Nigerian side signs, receives and reports, and is the Nigerian body registered with the CAC? Ask for its certificate and check it before you sign anything.
Where Pryme fits
Accountability depends on records that hold up. A Pryme Business Account can be opened from any country and holds NGN, USD, GBP and EUR; bulk payouts pay several naira accounts in one approved batch, and verifiable receipts from our partner VerifyDoc.ai let a board or auditor confirm a statement is unaltered. The Compliance agent can prepare the file for each grant; a person approves. Whether a payment route suits your charity is for your board and advisers to decide.
Questions people ask
Can my Canadian charity send money to a Nigerian NGO?
Yes, if it is a gift to a qualified donee, an activity the charity directs and controls through that NGO as intermediary, or a grant that meets the CRA's accountability requirements in CG-032.
What is a qualified donee?
An organisation the Income Tax Act lets Canadian charities give to, such as other registered charities. Most Nigerian NGOs are not qualified donees, which is why the grant and intermediary routes matter.
Do we need a written agreement for every grant?
CG-032 recommends one for most grants. It says one may not be necessary for one-off grants of $5,000 or less in very low-risk cases, where emails and other records may suffice.
What must we report to the CRA?
On the T3010, grants totalling more than $5,000 to one grantee in a year are reported by name, purpose and amount. Smaller grants are reported as a count and total.
Sources
- CRA: Registered charities making grants to non-qualified donees, CG-032 (modified 19 Dec 2023) · accessed Oct 2026
- Corporations Canada: Not-for-profit corporations (modified 21 Aug 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.