Level 1 of the Mécénat Placements Culture program aims to:
- capitalize the donations and contributions* collected by culture or communication charities during fundraisers;
- develop the charities’ fundraising expertise;
- encourage donors (individuals or private corporations), foundations or other registered charities in Quebec to give the charities long-term financial support.
- Check with the Ministère de la Culture et des Communications to make sure your charity is eligible, by contacting the person in charge of the program in your area: http://www.mcc.gouv.qc.ca/index.php?id=5711.
- Organize and hold a fundraiser. 3
- Deposit the funds raised in a philanthropic fund created with a partner community foundation. 4
- Submit an application for a matching grant to the Ministère de la Culture et des Communications.
Charities eligible for Level 1 of the program include:
- non-profit organizations involved in culture and communications that are established in and mainly carry out their activities in Quebec, with the majority of the administrators residing in Quebec;
- donees recognized under the Loi sur les impôts (section C. 1-3), namely a charity, or registered with Revenu Québec as a cultural or communication organization;
- charities eligible for the programs offered by Bibliothèque et Archives nationales du Québec, the Conseil des arts et des lettres du Québec, the Ministère de la Culture et des Communications or the Société de développement des entreprises culturelles.
Only donations from the private sector will be recognized under the program. Therefore, donations from government-owned corporations (Loto-Québec, Hydro-Québec, Société des alcools du Québec, etc.), government departments (ministères), municipalities, elected members’ or ministers’ offices (except for personal donations), school boards, CÉGEPS and other public institutions, regardless of government level, are excluded.
The term “donations” should be interpreted in the fiscal sense, except that in this context, it refers solely to cash donations and publicly traded securities that have been collected by a charity (including as bequests) and for which the charity has issued official receipts for income tax purposes. For publicly traded securities, the matching grant will be calculated based on the amount indicated on the official receipt.
Pledges and donations in kind, with the exception of publicly traded securities, are not included in the calculation of the matching grant. The term “contributions” refers to grants awarded by other charities registered with the Canada Revenue Agency (CRA), for which there are special provisions for issuing receipts.
3. Deposit the funds raised in a philanthropic fund created with a partner community foundatione
Charities must deposit the donations and contributions* submitted for matching funding in a fund created in a community foundation that is a partner of the program before the end of the financial year. The money must be left in the fund for a minimum of 10 years, or in perpetuity. To be entitled to a matching grant, the charity must have raised and deposited a minimum of $10,000 in donations and contributions* in the fund in its last two financial years.
The collected donations and contributions* must be correctly accounted for and be clearly identified in the charity’s financial statements as sums received for the purpose of applying for a matching grant under the Mécénat Placements Culture program.
The charity may augment the donations and contributions* deposited in the fund through both the Mécénat Placements Culture program and another program of the same type. However, a grant received under a different program will not be considered a donation or contribution* and will not count toward the calculation of the matching grant awarded by the Ministère.
4. Submit an application for a matching grant
Charities can apply for Level 1 of the program at any time, provided that they have completed their fundraiser in accordance with the program terms. Applicants must:
A) Before the end of the financial year in which the charity completes its fundraiser:
- Submit the list of donations and contributions* on their di@pason profile, consistent with the receipts issued, using the online form provided by the Ministère.
Fill out a new Mécénat Placements Culture application in their di@pason profile, uploading the following documents:
- an up-to-date list of the members of the charity’s Board of Directors and the board members of its controlled and related entities,* if applicable;
- the Revenu Québec registration certificate, if the charity is participating in the program for the first time (for charities registered with Revenu Québec);
- the main charity’s and the related entities’ financial statements for the last financial year that has ended (must be approved and signed by the Board of Directors’ authorized representatives). The financial statements must clearly identify the donations and contributions* collected and deposited in the community foundation* fund before the end of the financial year as funds calculated toward a matching grant under the Mécénat Placements Culture program.
- all tax receipts the charity has issued during the fundraiser for which it is applying for a matching grant;
- a copy of the fund management agreement signed by the charity and the community foundation;
- the desired distribution of the grant between the 10-year* fund and two-year* fund, as applicable.
Grants are awarded on a first-come, first-served basis. For mailed applications, the postmark will be considered the date on which the application was received. For applications submitted in person at one of the Ministère’s offices, the date of receipt will be written on the envelope. All applicants will receive an acknowledgement of receipt.
Calculating the matching grant
The maximum matching grant a charity and its controlled and related entities* may receive from the Ministère is $250,000 per financial year. The total proceeds* in the applicant charity’s financial statements, or the statements of the largest of its controlled and related entities*, provided with the application, determine the percentage at which the donations and contributions* collected and deposited in the community foundation fund will be matched, as well as the maximum grant that will be awarded.
The match percentage to which a charity eligible for Level 1 of the program is entitled will vary based on the charity’s earnings.
Requirements for the allocation of a matching grant
The awarded grant matching the donations and contributions* deposited in the community foundation fund may be divided between the charity’s 10-year* fund and a 2-year* fund, although the charity must comply with the minimum percentages required.
The percentage of the grant deposited in the 2-year fund* may be lowered in favour of the 10-year fund,* but the opposite is not permitted. A charity can even request that the entire grant be deposited in the 10-year fund*, thus waiving its right to the two-year fund.*
Consult the Ministère de la Culture et des Communications’ website for more information on the match and distribution percentages: http://www.mcc.gouv.qc.ca/index.php?id=5820.
* Terms followed by an asterisk (*) are defined in the Mécénat Placements Culture lexicon (in French only)
(1) Does not include Levels 2 and 3 of the program.