Critical Information to Include in a Charity Application

When applying for charity status in Canada, it's not just a process, it's a responsibility. It's essential to provide sufficient information to the Canada Revenue Agency (CRA). 

Unfortunately, about 65% of charity applications in Canada are not approved, primarily because the applicants need to provide more information. 

To avoid this, you must take the responsibility to provide detailed information about your charity's purposes, activities, and beneficiaries. 

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• Your charity application should include specific details about each program or activity mentioned in your Articles of Incorporation. 
• For instance, you should provide information about the nature of each activity, where it will be carried out, how it will be carried out, and who will conduct it.
• You must provide information about the qualifications and credentials of those who will conduct the activities. 
• It's also essential to describe the relationship between those running the charity's activities and the charity itself. Are they employees, volunteers, or others? This information will help the CRA, the respected authority in this process, understand how the charity's activities are managed and who is responsible for them. 
• Another crucial piece of information to include in your charity application is the beneficiaries of each activity. You should describe how the beneficiaries are selected, including any eligibility criteria, such as income levels, employment situation, age, or disability. The CRA will want to know how your charity will help these beneficiaries and how your activities will benefit the community. 
• If your charity's activities are carried out by someone other than the applicant's employees or volunteers, you must describe how you will maintain direction and control over the use of resources. This information will help the CRA ensure that your charity is using its resources appropriately and effectively.
•  It's also essential to describe the expenditures involved in carrying out each program or activity and whether the programs/activities will be carried out indefinitely or for a specific duration. This information will help the CRA determine whether your charity is financially sustainable and whether its activities align with its purposes.

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Lastly, it's worth noting that your charity need not be operating to obtain charity status in Canada. However, even if your charity is not operating yet, it must describe its proposed activities in as much detail as possible. 

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In the US, there is a preference that the charity has been in operation for a couple of years before obtaining charity status. 

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In Canada, however, this is not a requirement. Providing detailed information about your charity's purposes, activities, and beneficiaries is crucial when applying for charity status in Canada. By doing so, you can increase your chances of getting approved by the respected CRA.