It essentially means they are not in the list of what is considered to be a qualified donee. A municipality, for example, is a qualified donee, and the municipality is able to issue a receipt and is able to receive gifts from other registered charities. However, if a registered charity were to make a gift to a foreign organization, let's say, more than likely that organization would not be part of that defined group of qualified donees. That's when we would say that the charity has made a gift to a non-qualified donee.
On January 31st, 2012. See this statement in context.