A registered charity may face serious implications when collecting donations on behalf of others. For instance, a charity’s status could be revoked if the collected funds, issued receipts, and disbursed money are not qualifying disbursements. A qualifying disbursement is a gift received by a qualified donee like municipalities in Canada. However, if the donee acts merely as a conduit, the charity’s gift doesn’t qualify. A charity’s status can also be revoked if it receives a gift conditional on granting another gift to a non-qualified recipient.