About 65% of charity applications in Canada are not approved. There are many reasons why the CRA might reject a charity application, but the primary reason is simply because the Charity applicant didn't provide enough information.
At minimum, a charity application should include the following information for each of its purposes stated in its Articles of Incorporation:
- the nature of each program or activity in which the applicant will engage
- where each program and activity will be carried out
- how each program and activity will be carried out
- who will conduct each program and activity;
- the qualifications and credentials of those who will be conducting each activity;
- a description of the relationship between those running the charity's activities and the charity (are they an employee? volunteer? other?)
- what expenditures are involved in carrying out each program/activity
- the beneficiaries of each program/activity
- how the beneficiaries are selected, including any eligibility criteria, such as income levels, employment situation, age, disability, etc.
- if programs/activities are carried out by someone other than the applicant’s employees or volunteers, how the applicant will maintain direction and control over the use of resources
- whether the programs/activities will be carried out indefinitely, or for a specific duration
Contrary to popular opinion, a charity need not be operating to obtain charity status in Canada (though in the US, there is a preference that the charity to have been in operation for a couple of years). However, even if the charity is not operating yet, it must describe its proposed activities in as much detail as possible.