The Minister may, in the manner described in section 168, revoke the registration of a qualified donee referred to in paragraph (a) of the definition qualified donee in subsection (1) for any reason described in subsection 168(1).
A qualified donee is an organization that can issue official donation receipts for income tax purposes under the Income Tax Act. Registered charities are the most common type of qualified donee, but the category also includes registered Canadian amateur athletic associations, municipalities, and certain foreign universities.
Under s. 149.1(4.3), the CRA Minister has the authority to revoke the qualified donee status of any such organization for the same reasons that apply to the revocation of a registered charity under s. 168(1) — including failure to file required returns, issuing improper receipts, or non-compliance with the Act.
Losing qualified donee status means losing the ability to issue tax receipts, which can devastate donor fundraising. If your organization has received a notice of intent to revoke, B.I.G. Charity Law Group can help you respond. Contact us today.
Qualified donees include registered charities, registered Canadian amateur athletic associations, registered journalism organizations, the United Nations and its agencies, certain foreign universities, and various levels of Canadian government.
The CRA follows the same process as for charity revocation — a Notice of Intention to Revoke is sent by registered mail, giving the organization an opportunity to respond before revocation takes effect.
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