Get Your Charitable Purposes Right: A Guide

Creating a charity in Canada requires careful attention to detail, especially when drafting the purposes of your organization. These purposes define your mission and guide your activities, and they must comply with the Income Tax Act to gain recognition from the Canada Revenue Agency (CRA). This article will provide additional examples for each category of charity and explain how to structure them for a successful application.

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What Are Charity Purposes and Why Do They Matter?

Charity purposes are the formal objectives outlined in your governing documents (e.g., articles of incorporation or constitution). These purposes must clearly show:

1. Who benefits from the charity
2. How the charity will achieve its objectives
3. What specific activities will be carried out

Purposes that are too vague, broad, or non-charitable often lead to rejected applications. The CRA assesses these purposes to ensure they provide a clear public benefit and align with one of the four categories of charity.

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The Four Categories of Charity and Detailed Examples

1. Relief of Poverty
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Charities under this category provide direct assistance to individuals or families in financial distress. To ensure compliance, the purpose must specify who is being helped, how they are being helped, and what specific activities will be conducted.

Examples:

1. “To relieve poverty by operating a food bank in Toronto that provides free groceries to low-income families.”
   • How to Achieve: Partner with local grocery stores for surplus food donations, recruit volunteers for food distribution and organize outreach programs to inform eligible families.
2. “To relieve poverty by providing financial assistance to single mothers in Vancouver for rent, utilities, and childcare.”
   • How to Achieve: Establish a financial aid application process, collaborate with social workers to identify candidates, and allocate funds through monthly disbursements.
3. “To relieve poverty by offering free legal clinics in Ontario for individuals facing eviction.”
   • How to Achieve: Work with volunteer lawyers, host bi-weekly legal advice sessions, and create educational resources about tenant rights.

2. Advancement of Education
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Charities in this category promote learning and skill development. To ensure the purposes are compliant, describe the type of education, the target audience, and the specific methods.

Examples:

1. “To advance education by providing free STEM (Science, Technology, Engineering, and Math) workshops for high school students in Manitoba.”
   • How to Achieve: Develop curriculum materials, collaborate with local schools, and host weekly workshops led by qualified instructors.
2. “To advance education by creating scholarships for Indigenous students pursuing post-secondary education in Canada.”
   • How to Achieve: Establish a scholarship fund, set eligibility criteria, and coordinate with universities for application processing.
3. “To advance education by offering literacy and language classes for immigrants and refugees in Alberta.”
   • How to Achieve: Hire certified ESL (English as a Second Language) teachers, provide free learning materials, and operate evening classes to accommodate working individuals.

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3. Advancement of Religion
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Charities advancing religion must focus on spreading religious teachings and conducting activities in line with their faith. The purposes should clearly explain the religious principles being advanced and how they will benefit the community.

Examples:

1. “To advance religion by conducting weekly worship services and community outreach programs based on Christian teachings in Ontario.”
   • How to Achieve: Maintain a worship space, recruit volunteers for outreach activities, and provide religious texts to attendees.
2. “To advance religion by providing spiritual counseling and guidance to individuals in Edmonton, Alberta suffering from addiction.”
   • How to Achieve: Partner with addiction recovery centers, train spiritual counselors, and organize regular group prayer sessions.
3. “To advance religion by translating and distributing sacred texts of the Muslim faith in Ontario.”
   • How to Achieve: Hire translators, collaborate with publishers, and distribute materials to Muslim communities through mosques and online platforms.

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4. Other Purposes Beneficial to the Community
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This category covers a wide range of charitable activities that provide a clear public benefit but don’t fall into the first three categories. Each purpose should specify how it benefits the community, who the beneficiaries are, and the methods used to achieve it.

Examples:

1. “To promote health by organizing free dental clinics for children in rural Newfoundland and Labrador.”
   • How to Achieve: Partner with volunteer dentists, set up mobile dental units, and advertise the program through local schools.
2. “To protect the environment by conducting tree-planting initiatives and educating the public on sustainable practices in Calgary, Alberta.”
   • How to Achieve: Host workshops on sustainability, collaborate with municipalities for planting locations, and engage volunteers for hands-on activities.
3. “To support mental health by providing free counseling and therapy services to veterans in Nova Scotia.”
   • How to Achieve: Hire licensed therapists, offer in-person and virtual sessions, and establish peer support groups for ongoing community support.

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Key Points for Drafting Charity Purposes in Applications

1. Be Specific: Avoid vague language like “to help people.” Instead, outline exactly who will benefit and how.
2. Align Activities with Purposes: Every activity your charity conducts must directly support one of its stated purposes.
3. Include Achievable Goals: Ensure your purposes are realistic and supported by a clear plan for implementation.
4. Focus on Public Benefit: Highlight how your activities will make a tangible difference to the community.
5. Consult Professionals: Seek guidance from experienced charity lawyers to avoid errors and improve your chances of success.

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Consult with Charity Lawyers or Law Firms with Proven Track Records

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To ensure your purposes meet all requirements and align with CRA standards, it’s wise to seek professional guidance. Consulting a charity law firm with an excellent reputation, like B.I.G. Charity Law Group Professional Corporation, can provide invaluable support. With a strong track record of helping charities navigate the application process, we can help you craft compliant purposes, address potential challenges, and streamline the approval process. Our expertise ensures your charity is set up for long-term success.

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Drafting charity purposes that comply with the Income Tax Act is one of the most critical steps in starting a charity in Canada. By being detailed, specific, and aligned with recognized charitable categories, you can increase the likelihood of CRA approval. Ensure your purposes are actionable and accompanied by a clear plan for achieving them.

If you’re unsure, consulting a Charity law firm like B.I.G. Charity Law Group Professional Corporation can help you navigate the complexities of the process, ensuring compliance and setting your charity up for meaningful community impact. Reach out for a free consultation at 416-488-5888 or ask@charitylawgroup.ca.

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