Charitable Status

Registering with Canada Revenue Agency

The registration of an organization as a charity is an involved process and decisions must be made on a wide variety of topics. The application and its process require the officers, directors and members of the organization to think through what its objects and activities are going to be. Registration is only the beginning of the relationship of continued compliance with Canada Revenue Agency.

Organizational Requirements

To be eligible for registration, a charity must be established exclusively for charitable purposes, as broadly defined. The objectives of the charity cannot be so broad, however, that non-charitable activities are permitted. The courts have classified charitable objectives into four categories:

  • The relief of poverty;

  • The advancement of religion;

  • The advancement of education; and

  • Other purposes beneficial to the community which the courts have decided are charitable

A charity must also meet the public benefit test to demonstrate that:

  • Its activities and purposes provide a tangible benefit to the public

  • Those people who are eligible for benefits are either the public as a whole or a significant part of the public as a whole. They cannot be a restricted group or where the members of the group share a private connection, such as a social club or professional association; and

  • The activities must be legal and cannot be contrary to public policy

(Charities and Not-for-Profit Fundraising Handbook. Donald J. Bourgeois, p.142)

To Register

Prescribed forms must be completed and sent to Canada Revenue Agency. Certain documents must also be filed providing complete details of the charities activities, a copy of the governing documents, the balance sheet, and the statement of receipts and disbursements, or, if the charity is not in operation, the budget for the first year of operation.

"Application Kit to Register a Charity" published by Canada Revenue Agency - T2050, available free of charge, will provide you with all the information and forms to register as a charity. To contact a tax services office in your area, see the telephone listings for "Canada Revenue Agency" in the Government of Canada (blue section) of the telephone book or call 1-800-959-2221 to request the application kit. You may also visit the nearest Canada Revenue Agency. In Edmonton this office is located at Canada Place, 9700 Jasper Avenue; in Calgary at

220-4th Avenue South East. You may also visit the Canada Revenue Agency web site at www.cra-arc.gc.ca

Factors for Disqualification

The income tax act states that a charitable organization must devote all of its resources to its own charitable activities. An organization will not qualify for charitable status if it does not meet this requirement.

An organization will also fail to qualify for charitable status if it seeks to achieve political objectives, in whole or in part.

Reasons for Revoking Charitable Registration

  • The failure to conform to the minimum disbursement quota

  • The carrying on of a business activity that does not qualify as a related charitable business

  • The failure to file the required information returns in the prescribed form and time period

  • The issuance of a receipt containing false information

  • The failure to keep adequate books and records.