Charity FAQs

Charity Application for Employment and Entrepreneurial Training

A charity applying to provide entrepreneurial and employment training would be approved by the CRA for charity registration, that it relieves unemployment.

An organization that provides entrepreneurial training can give instruction to eligible beneficiaries on various topics, such as

- preparing a business plan

- how to obtain financing

- maintaining books and records

preparing financial statements

developing marketing and

- understanding government regulations.

Eligible beneficiaries for activities that relieve or prevent unemployment can include disabled, unemployed, or soon-to-be unemployed individuals who need help.

Activities that relieve unemployment of individuals who are unemployed or facing a real prospect of imminent unemployment and are shown to need assistance may be charitable if they directly further one or more of the charitable purposes. Examples of activities that relieve unemployment include:

- Providing employment-related training;

- Providing career counseling;

- Providing assistance with resumes or preparing for job interviews; and

- Establishing lists of available jobs.

Helping individuals who are underemployed to get a new job can be a charitable activity when it can be shown to further a charitable purpose, such as relieving poverty or relieving conditions associated with a disability. When the emphasis is on helping employers recruit employees, this does not further a charitable purpose due to the delivery of a more than incidental private benefit to the employers.

To demonstrate that the charity will carry out these types of employment-related and entrepreneurial training activities in a charitable manner, the charity application should include all of the following information:

- the eligible beneficiaries of its entrepreneurial or employment-related training programs

- provide the selection criteria and process

- details such as the structure, the frequency and schedule

- how it selects the eligible beneficiaries and determines that these individuals are in need of such training

- the qualifications of the individuals who will provide the training

- the associated costs of the training

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