Canadian Forces QR & Os (Queen's Regulations and Orders) allow military units to apply for the status to issue receipts for income tax purposes for donations to a Unit Fund. Units apply through the chain of command, and National Defence Headquarters applies on their behalf to Canada Customs and Revenue Agency for charitable status. This allows units to raise funds for administrative and capital expenditure purposes, offering tax relief to donors.
In 1960 the Senate requested the Serving Battalion to submit an application which was subsequently approved. The Unit Fund has been administered by the Senate from inception.
The Senate approved the formation of a Regimental Foundation in 1979. The Toronto Scottish Regiment Foundation is a corporation registered under the laws of the Province of Ontario, and has been registered as a Public Charitable Foundation with Canada Customs and Revenue Agency. Its purpose is to raise a permanent or capital fund, the income from which can be given to the Serving Battalion to help cover the costs of maintaining our distinctive highland uniforms, Regimental traditions, and assist in meeting the operating needs of the Serving Battalion not covered by the Department of National Defence.
The original financial target of the Foundation of $50,000 was quickly exceeded. Since inception the Foundation has given over $500,000 to the Serving Battalion from income and capital gains on investments.
While the Foundation operates under the guidance of eighteen Trustees as a totally independent entity, it does so under the watchful eye of the Senate, several of whose members are also Trustees of the Foundation.
The Unit Fund differs from the Foundation in two aspects. It is designated as a charitable organization whereas the Foundation is a public foundation. The Unit Fund must distribute at least eighty percent of its charitable donations within one year of receipt, whereas donations to the Foundation are placed into a permanent or capital fund to earn income which in turn may be given to the Serving Battalion.