Don't Use the Form T2050 To Register a Charity In Canada: It is No Longer Accepted by the CRA

Understanding the process to register a charity in Canada is crucial for any organization aiming to make a significant social impact.

It's important to note that the Canada Revenue Agency (CRA) has transitioned to a primarily online application system. The previously used T2050 form is no longer accepted by the CRA.

We've heard anecdotally from CRA examiners that four years after the form has been discontinued, it continues to receive tens of applications to register a Canadian charity using form T2050 every year, including from accountants and law firms!

Key Updates and Application Process:

• The CRA now mandates online applications through their "Apply to become a registered charity" portal. As of March 2021, the CRA reported that approximately 95% of applications are submitted online, highlighting their strong preference for this method.
• While a paper application is still available upon request for those with extenuating circumstances, be aware that these applications face significantly longer processing times. The CRA actively encourages all applicants to utilize the online system.
• It's vital to recognize that applying to register a charity in Canada is a far more intricate process than obtaining a standard business number or license. The CRA requires extensive documentation and information to assess an organization's eligibility.
• Furthermore, becoming a registered charity entails substantial ongoing compliance obligations. Organizations must be prepared to adhere to stringent regulations and reporting requirements.

Professional Assistance:

• Many organizations seek professional legal assistance to navigate the complexities of the CRA Charity Registration application process. Experienced Charity Lawyers can provide valuable guidance and support, ensuring a smoother and more efficient application experience. With about 50% of all charity applications being rejected annually by the CRA - Charities Directorate, the ROI of using an experienced Charity Law Firm, such as B.I.G. Charity Law Group, is invaluable.

By understanding the updated online application process and the associated compliance requirements, organizations can better prepare to register a charity or Foundation in Canada and maximize their positive impact.

If you are looking to register your charity using the CRA's mandated online portal and need assistance, contact our charity registration legal team at 416-488-5888, by email at ask@charitylawgroup.ca or by scheduling a free 15 minute charity registration consultation.