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 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.