Apply for Charity Registration

Charities are essential pillars of our society, providing much-needed support to various causes and communities. But the inner workings of these organizations can sometimes seem complex. Let’s simplify how charities operate according to the guidelines of the Income Tax Act, making it understandable for everyone.

Understanding Charity Operations

Charities can function in two main ways:

1. Direct Involvement in Charitable Activities:
2. Through Staff and Volunteers: This is the most hands-on approach, where the charity itself, through its team, carries out its charitable work.
3. Using an Intermediary: Sometimes, charities work through other groups or organizations (intermediaries) to achieve their goals. However, it's important for the charity to maintain control over these activities to ensure they align with its objectives.
4. Making Qualifying Disbursements:
5. Gifts to Qualified Donees: These are donations made to other registered charities or organizations recognized as being able to receive such gifts.
6. Grants to Non-Qualified Donees (Grantees): These are financial aids given to groups that aren’t registered as donees. Here, the charity must ensure proper accountability for how these funds are used.