Home > Corporate > Military Families Fund > Governance > Non-Public Property
NATURE OF DONATIONS TO NON-PUBLIC PROPERTY ACTIVITIES
The Military Families Fund (MFF) is a “Non-Public Property” (NPP) account that provides Canadians with the most appropriate means for expressing their generosity and support for the families of military members, whose lives are so often disrupted and challenged by the unique services their loved ones provide to Canada and to Canadians.
Historically, charitable donations and volunteer support contributed significantly to morale and welfare programs and services for members of the Canadian Forces (CF) and their families. Subsequent to the Second World War, when it was clear to the Government of Canada that charities could no longer support the morale and welfare needs of the CF and their families, Parliament codified in the National Defence Act (NDA) the means by which morale and welfare programs and services could be funded, established and operated. These are the NPP provisions found in sections 2 and 38 - 41 of the NDA. (See below). Virtually all Western nations have similar “non-public” fund or “non-appropriated” fund programs and services, which fall outside the “public funds” accountability framework.
In general, the monies which support all NPP programs and services, are generated by:
- public funds,
- revenues from resale operations,
- CF member mess dues and assessments in messes, clubs, and other facilities,
- assessments against individuals participating in or attending NPP activities, and
- contributions for the benefit of CF members and their families.
Nature of donations
As noted above, one of the sources of monies used to support NPP programs and activities is “contributions”. Section 39(1) of the NDA specifically contemplates the Chief of the Defence Staff (CDS) receiving contributions towards the support of morale and welfare programs and services for CF members and their families.
The CDS MFF will provide a specific Non-Public Property account through which the contributions of Canadians may be accepted and administered in accordance with terms of reference as approved by the CDS. Non-public property is a special class of Crown property that has a unique accountability framework for which the CDS is responsible. Donations to the Fund are therefore treated as gifts to Her Majesty, and tax receipts for this Fund will be issued as gifts to the Crown.
Extracts from the NDA:
non-public property" means
(a) all money and property, other than issues of materiel, received for or administered by or through messes, institutes or canteens of the Canadian Forces,
(b) all money and property contributed to or by officers, non-commissioned members, units or other elements of the Canadian Forces for the collective benefit and welfare of those officers, non-commissioned members, units or other elements,
(c) by-products and refuse and the proceeds of the sale thereof to the extent prescribed under subsection 39(2), and
(d) all money and property derived from, purchased out of the proceeds of the sale of, or received in exchange for, money and property described in paragraphs (a) to (c);
Non-public Property
Non-public property of units
38. (1) The non-public property of a unit or other element of the Canadian Forces shall vest in the officer from time to time in command of that unit or other element, and shall be used for the benefit of officers and non-commissioned members or for any other purpose approved by the Chief of the Defence Staff in the manner and to the extent authorized by the Chief of the Defence Staff.
Non-public property of disbanded units
(2) The non-public property of every disbanded unit or other disbanded element of the Canadian Forces vested in the officer in command of that unit or other element shall pass to and vest in the Chief of the Defence Staff, and may be disposed of at the discretion and direction of the Chief of the Defence Staff for the benefit of all or any officers and non-commissioned members or former officers and non-commissioned members, or their dependants
Non-public property of units or elements in altered circumstances
(3) Where, by reason of a substantial reduction in the number of officers and non-commissioned members serving in a unit or other element of the Canadian Forces or by reason of a change in the location or other conditions of service of a unit or other element, the Chief of the Defence Staff considers it desirable to do so, he may direct that the non-public property or any part thereof that is vested in the officer in command of that unit or other element shall pass to and be vested in the Chief of the Defence Staff on the terms set out in subsection (2).
R.S., 1985, c. N-5, s. 38; R.S., 1985, c. 31 (1st Supp.), s. 60.
Other non-public property
39. (1) Non-public property acquired by contribution but not contributed to any specific unit or other element of the Canadian Forces shall vest in the Chief of the Defence Staff and, subject to any specific directions by the contributor as to its disposal, may be disposed of at the discretion and direction of the Chief of the Defence Staff for the benefit of all or any officers and non-commissioned members or former officers and non-commissioned members, or their dependants.
By-products and refuse
(2) By-products and refuse derived from rations and other consumable stores issued to the Canadian Forces for use in service kitchens, and the proceeds of the sale thereof, shall, to the extent that the Governor in Council may prescribe, be non-public property.
Alienation of non-public property
(3) Except as authorized by the Chief of the Defence Staff, no gift, sale or other alienation or attempted alienation of non-public property is effectual to pass the property therein.
R.S., 1985, c. N-5, s. 39; R.S., 1985, c. 31 (1st Supp.), s. 60.
Liability for loss or damage
40. The conditions under which and the extent to which an officer or non-commissioned member is liable to make restitution or reimbursement in respect of loss of or damage to non-public property resulting from the negligence or misconduct of that officer or noncommissioned member shall be as prescribed by the Minister.
R.S., 1985, c. N-5, s. 40; R.S., 1985, c. 31 (1st Supp.), s. 60.
Ministerial directions
41. (1) The Chief of the Defence Staff shall exercise his authority under subsections 38(1) and (2) and 39(1) subject to any directions that may be given to him by the Minister for carrying the purposes and provisions of this section and sections 38 to 40 into effect.
Audit
(2) Non-public property accounts shall be audited as the Minister may from time to time direct.
Special provision
(3) The Financial Administration Act does not apply to non-public property.
R.S., c. N-4, s. 38.





