Canadians: Have you ever or are you currently registered as a "registered Charity" with Revenue Canada?
05.November, 2009
what does it entail? thanks!
For Canadian tax purposes, generally only donations to Canadian registered charities (or other qualified donees) may be used to reduce an individual’s personal income tax.
The Canada Revenue Agency (CRA) administers a system to register charities under the Income Tax Act. As the regulator of charities, the CRA’s responsibilities include:
* processing applications for registration;
* offering technical advice on operating a charity;
* handling audit and compliance activities; and
* providing general information to the public.
Registration provides charities with exemption from income tax. Registration also authorizes charities to issue official donation receipts for income tax purposes, meaning that donors can claim gifts made to registered charities to reduce their income tax.
The CRA determines that an organization qualifies for registered status if its purposes and activities fall within the legal concept of charity (set out by the courts) and it meets the other requirements of the Income Tax Act.
Registered charities must fit into one of four categories of charitable purposes:
* the relief of poverty;
* the advancement of education;
* the advancement of religion; or
* other purposes that benefit the community in a way the courts have said are charitable.
Non-profit organizations are organizations in the community with worthwhile purposes that are not considered charitable by the courts. For example, organizations such as non-profit social clubs and advocacy groups do not generally meet the legal definition of charity and therefore do not qualify for registration.
The Charities Directorate is an organizational subdivision of the CRA. Officers in the Charities Directorate review all applications for charitable status. Charities Directorate officers can also monitor organizations that already have charitable status. In order to apply for registered status, an organization must tile Form T2050, Application to Register a Charity Under the Income Tax Act.
Once it is registered, an organization must:
* devote its resources to charity;
* continue to meet the other requirements of registration; and
* file Form T3010, Registered Charity Information Return, within six months of the organization’s year-end. (Part of the return is available to the public on request.)
If it does not meet these obligations, the charity may lose its registered status.
There is a lot of information available on the CRA website listed below. Of particular assistance is form T4063, which is a guide to completing Form T2050.
I would estimate that it will take a minimum of 6 months to register a charity but it can take significantly longer than that if you don’t have everything in order in your application or if CRA has concerns about the registration application.
05.November, 2009 um 6:50 pm
it means if you are in dire economic conditions, there are avenues to help you…..a short answer to a detailed document…
References :
canada
05.November, 2009 um 6:57 pm
A lot of paperwork. If you are working for a group which wishes to register as a charity, you will need to contact CRA (not called Revenue Canada any more), and they can walk you through the process. It’s neither simple nor quick, and for good reason.
To be a registered charity in Canada, you need to show an organization which is dedicated to some overriding public good. Just any old special interest group doesn’t qualify, you have to document what your aims are, who the group is (directors and such), and how this group is working to help society or part of society.
References :
05.November, 2009 um 7:08 pm
Hi. I am involved with a number of Registered Charities. Just what is your question or better still, are you trying to set up a charity and get it registered or are you trying to do the year end requirements of a charitable organization.
References :
05.November, 2009 um 7:20 pm
For Canadian tax purposes, generally only donations to Canadian registered charities (or other qualified donees) may be used to reduce an individual’s personal income tax.
The Canada Revenue Agency (CRA) administers a system to register charities under the Income Tax Act. As the regulator of charities, the CRA’s responsibilities include:
* processing applications for registration;
* offering technical advice on operating a charity;
* handling audit and compliance activities; and
* providing general information to the public.
Registration provides charities with exemption from income tax. Registration also authorizes charities to issue official donation receipts for income tax purposes, meaning that donors can claim gifts made to registered charities to reduce their income tax.
The CRA determines that an organization qualifies for registered status if its purposes and activities fall within the legal concept of charity (set out by the courts) and it meets the other requirements of the Income Tax Act.
Registered charities must fit into one of four categories of charitable purposes:
* the relief of poverty;
* the advancement of education;
* the advancement of religion; or
* other purposes that benefit the community in a way the courts have said are charitable.
Non-profit organizations are organizations in the community with worthwhile purposes that are not considered charitable by the courts. For example, organizations such as non-profit social clubs and advocacy groups do not generally meet the legal definition of charity and therefore do not qualify for registration.
The Charities Directorate is an organizational subdivision of the CRA. Officers in the Charities Directorate review all applications for charitable status. Charities Directorate officers can also monitor organizations that already have charitable status. In order to apply for registered status, an organization must tile Form T2050, Application to Register a Charity Under the Income Tax Act.
Once it is registered, an organization must:
* devote its resources to charity;
* continue to meet the other requirements of registration; and
* file Form T3010, Registered Charity Information Return, within six months of the organization’s year-end. (Part of the return is available to the public on request.)
If it does not meet these obligations, the charity may lose its registered status.
There is a lot of information available on the CRA website listed below. Of particular assistance is form T4063, which is a guide to completing Form T2050.
I would estimate that it will take a minimum of 6 months to register a charity but it can take significantly longer than that if you don’t have everything in order in your application or if CRA has concerns about the registration application.
References :
http://www.ccra.gc.ca/charities
http://www.cra-arc.gc.ca/E/pub/tg/t4063/t4063-e.html