How Long Does it Take To Register a Charity in Canada?

The Charities Directorate estimates that a straightforward application for Charity Registration typically takes two months. However, this expedited timeline is a rarity, applying to only about 1% of charity applications.

For the majority of applications, where the CRA (Charities Directorate) has follow-up questions, the process can extend to six months. It's important to note that due to these additional queries, the actual timeline often stretches to 7-8 months.

If you opt to engage a lawyer to handle your charity application, it's essential to inquire about the expected timeline, from the retention date to the application submission with the CRA.

We've received feedback from clients who initially engaged other law firms and shared how their application was delayed for several months, despite their urgent requests to expedite the process.

This unfortunate situation underscores the fact that charities cannot issue tax receipts until their registration is complete.

This limitation significantly curtails their fundraising options and, more importantly, hampers their ability to provide crucial assistance to those in need. It's a stark reminder of the importance of timely registration.

Undertaking the registration process with patience and attention to detail is a wise move, as it can prevent delays or rejection of the application. Collaborating with an experienced charity lawyer or consultant can ensure that the application is complete and accurate and that any follow-up questions from the CRA are promptly addressed.

The advantages of registering as a charity in Canada are substantial.

Registered charities are granted tax-exempt status and can issue tax receipts to donors, a powerful incentive for fundraising. Furthermore, charitable status can boost an organization's reputation and credibility, making it easier to secure grants and other forms of support.

These benefits underscore the importance of the registration process and can serve as a strong motivation to complete it.

Understanding the Registration Process Timeline

The Canada Revenue Agency usually takes 4-8 months to process charity registration applications. Processing times depend on your application’s completeness and how complex your organization is.

Estimated Duration for Approval

Straightforward applications take about 2 months to process once submitted. Most complete applications need 4-6 months for full review and approval, starting after the CRA receives all required documentation.

Complex applications may take 6-8 months. These often involve organizations with unique structures or purposes that need extra review.

Application Type Timeline:

• Simple applications: 2 months
• Standard applications: 4-6 months
• Complex applications: 6-8 months

Factors Affecting Processing Times

Submitting a complete application speeds up processing. Missing information causes delays as the CRA asks for more details.

Clear, well-prepared documentation helps your application move faster. The CRA’s workload can also affect wait times, especially during busy periods.

Your organization’s complexity matters. Simple charitable purposes get approved more quickly than organizations with many activities.

Key factors include:

• Documentation completeness
• Application quality and clarity
• CRA current workload
• Organizational complexity

Stages of Registration

The registration process has four main stages. Each stage has specific requirements you must finish before moving to the next.

Stage 1: Preparation and documentation gathering
Stage 2: Form T1789 – Application to Register a Charity Under the Income Tax Act completion and submission

Stage 3: CRA review and assessment
Stage 4: Registration decision and notification

During the review stage, the CRA may ask for more information. Responding quickly helps prevent delays.

We recommend tracking your application status through the CRA's online portal. This helps you monitor progress and reply promptly to requests.

The last stage is receiving your registered charity number. This usually arrives within days of approval.

Eligibility Criteria and Choosing the Right Organization Type

Before registering, organizations must meet specific eligibility requirements. You should also understand the difference between charitable organizations and non-profit organizations.

The organization type you choose affects your registration timeline, legal obligations, and operational rules. Choose carefully to avoid problems later.

Charitable Organization vs Non-Profit Organization

Charitable organizations and non-profits have different roles under Canadian law. Charitable organizations must operate only for purposes recognized by law, such as relieving poverty, advancing education or religion, or other community benefits.

Non-profit organizations have broader purposes and can focus on social, recreational, or hobby activities. They do not need to have charitable purposes.

Key differences include:

• Tax receipts: Only registered charities can issue official donation receipts
• Income tax: Registered charities do not pay income tax on charitable activities
• Funding access: Charities can receive donations from other registered charities
• Public trust: Charitable status increases credibility with donors

Charitable organizations usually take 6-18 months for CRA approval. Non-profit organizations can incorporate in 2-4 weeks but cannot issue tax receipts.

Choose your structure carefully. You cannot change from non-profit to charitable status without completing the full charity registration process.

Understanding Qualified Donees

Qualified donees are organizations that can receive tax-deductible donations and donations from registered charities. This status is important for fundraising.

Types of qualified donees include:

• Registered charities
• Registered Canadian amateur athletic associations
• Housing corporations resident in Canada
• Canadian municipalities
• The United Nations and its agencies

Only qualified donees can issue official donation receipts. Donors can claim tax credits for gifts to qualified donees.

Non-profit organizations that are not registered charities cannot become qualified donees. This limits their fundraising options.

Charitable registration gives you qualified donee status automatically. You do not need a separate application for this.

Implications of NFP Act Registration

The Not-for-profit Corporations Act (NFP Act) sets rules for many Canadian charities and non-profits at the federal level. Organizations incorporated under this act must follow specific governance requirements.

NFP Act requirements include:

• Annual member meetings
• Detailed record-keeping
• Director liability rules
• Financial statement requirements

The NFP Act affects registration timelines. You must incorporate first, then apply for charitable status, which adds 2-4 weeks to the process.

Provincial incorporation is another option. Each province has its own non-profit laws with different requirements.

Organizations planning national activities often choose federal incorporation. Those operating in one province may prefer provincial incorporation for simpler rules.

Federal or provincial incorporation does not affect your eligibility to register as a charity. Both can apply through the same CRA process.

Preparing and Submitting Your Application

Preparing your charity application requires careful attention to legal documents and your organization’s structure. You need proper articles and by-laws, legal incorporation, and a solid governance framework.

Drafting Articles and By-Laws

Your articles of incorporation form the legal foundation of your charity. These documents must clearly state your charitable purposes and activities.

We recommend working with a lawyer who understands charity law. The articles need specific language that meets CRA requirements, and every purpose you list must qualify as charitable.

Your by-laws explain how your organization operates. They cover board meetings, voting, and financial management, and must match your articles and provincial non-profit laws.

Key elements for articles:

• Charitable purposes only
• Dissolution clause
• Restriction on political activities
• Limits on commercial activities

You can amend articles later, but this requires provincial approval and filing fees. Getting them right the first time saves time and money.

Incorporate as a Non-Profit or Charity

You must incorporate before applying for charitable status. Most groups incorporate at the provincial level, but federal incorporation is also possible.

Provincial incorporation usually takes 1-4 weeks. Each province has different requirements and fees, and some offer online filing for faster processing.

Incorporation timeline by method:

• Online filing: 1-2 weeks
• Paper filing: 3-4 weeks
• Complex applications: 4-6 weeks

Choose your province or territory based on where you will operate. You must follow that jurisdiction’s non-profit corporation laws.

Federal incorporation takes longer but lets you operate across Canada without extra registrations. This is best for organizations with national plans.

Selecting a Registered Office and Directors

Your registered office must be in Canada, in the province or territory where you incorporate. This address receives official documents and government mail.

You cannot use a post office box as your registered office. The address must be a physical location where someone can receive documents during business hours.

Registered office requirements:

• Physical address in Canada
• Located in your incorporation jurisdiction
• Accessible during business hours
• Not a P.O. box

Your board of directors must include Canadian residents. Most provinces require at least three directors, with most being Canadian residents or citizens.

Directors must understand their legal duties and the charity sector. They oversee governance, finances, and compliance with charity law.

We suggest recruiting directors with skills in finance, law, fundraising, or your sector. Strong governance helps your application and future work.

Dealing With Federal and Provincial Authorities

Registering a charity in Canada means working with several government bodies. You must coordinate with Corporations Canada for federal incorporation, manage business filings, and communicate with the CRA during registration.

Role of Corporations Canada

Corporations Canada handles federal incorporation for non-profit organizations under the Canada Not-for-profit Corporations Act. You can incorporate online or by submitting paper applications.

You need specific documents for federal incorporation. These include Form 4001 for Articles of Incorporation, Form 4002 for your initial registered office and directors, and a NUANS name search report to check name availability.

Federal incorporation costs $200 online or $250 by paper. The NUANS search adds $20 to $100. Processing takes one to four weeks after you submit all documents.

Corporations Canada gives you nationwide name protection and lets you operate in all provinces. If you set up a physical presence in a province, you may need extra-provincial registration.

Business and Legal Filings

You must keep your business filings and compliance requirements up to date. Maintain current information with the incorporating authority and file annual returns to stay in good standing.

Provincial incorporation is an alternative to federal registration. Each province has its own laws and fees, ranging from $35 to $250.

Keep your governing documents current and compliant, including articles, bylaws, and any amendments. These documents are key to your charity application with the CRA.

Update your registered office address and board of directors with the incorporating authority. Make changes quickly to avoid delays in your charity registration.

Coordinating With the Canada Revenue Agency

The CRA processes your charity application under the Income Tax Act once you incorporate. Submit Form T1789 – Application to Register a Charity Under the Income Tax Act with all required documents.

The CRA assigns your application to a charity examiner for review. This review usually takes six to eight months for simple applications, but complex cases can take longer.

Respond quickly to any CRA requests for more information. Provide clear answers and supporting documents when needed.

The CRA may ask about your activities, governance, or how you meet charitable purposes. Stay consistent with your application materials to avoid problems.

After Registration: Compliance and Ongoing Obligations

Registered charities must follow specific legal requirements to keep their status. File annual returns within six months of your fiscal year-end and notify authorities of any organizational changes within 30 days.

Annual Reporting Requirements

We must file the T3010 registered charity information return within six months of our fiscal year-end. This deadline applies to all registered charities operating in Canada.

The T3010 return shows transparency and accountability to Canadians. It explains how we used our charitable funds during the year.

Key information required includes:

• Financial statements and revenue sources
• Program activities and beneficiaries served
• Director and executive compensation
• Fundraising costs and methods

Failing to file this annual return can lead to serious consequences. The Canada Revenue Agency may revoke our charitable registration for non-compliance.

Late filing penalties may also apply. We should mark our calendar well in advance to ensure timely submission.

Making Amendments to Organizational Documents

We must notify the Minister in writing within 30 days of specific changes. This requirement helps keep our records accurate.

Required notifications include changes to:

• Name and address
• Objectives or purpose of the charitable organization
• Board members and signing officers

Amendments to articles of incorporation require separate provincial filings. We need to complete both federal and provincial steps when making structural changes.

Some changes may need pre-approval from the Canada Revenue Agency. Major alterations to our charitable purposes usually need advance clearance to keep our registration.

The Income Tax Act sets out which activities qualify as charitable. We must ensure any amendments follow these legal requirements.

Managing Tax and Financial Reporting

Registered charities have tax-exempt status under the Income Tax Act. We don't pay income tax on funds used for charitable purposes.

We must keep detailed financial records throughout the year. Good bookkeeping makes annual reporting easier and more accurate.

Essential financial management includes:

• Tracking donation receipts and expenditures
• Maintaining separate accounts for restricted funds
• Recording volunteer hours and in-kind donations
• Documenting program expenses vs. administrative costs

We can issue official donation receipts to supporters. These receipts must meet CRA formatting requirements and include mandatory information.

Annual financial audits may be required based on our revenue size. Organizations with higher annual revenues often need professional audit services.

Common Challenges and Tips for a Smooth Registration

The charity registration process can involve several obstacles that extend processing times beyond six months. Proper preparation and accurate documentation help avoid common pitfalls.

Avoiding Delays in Approval

Many applications get delayed because organizations submit incomplete documentation or don't meet basic requirements. The most common delay happens when applicants don't clearly define their charitable purposes.

Your organization must fit into one of four charitable categories: relief of poverty, advancement of education, advancement of religion, or other purposes beneficial to the community.

Common delay factors include:

• Unclear charitable objectives
• Missing financial projections
• Incomplete governance documents
• Insufficient detail about planned activities

We recommend reviewing the CRA's requirements thoroughly before submitting. Applications often get returned when organizations don't show how their activities directly support their charitable purposes.

Complex business structures can also slow the process. If your charity plans to incorporate or run multiple programs, provide detailed explanations of each part.

Ensuring Documentation Accuracy

Accurate documentation is the foundation of successful charity registration. Organizations with precise, well-organized applications move through the process faster.

Essential documents must include:

• Articles of incorporation (if you incorporate)
• Detailed governing documents
• Financial projections for two years
• Activity descriptions with specific examples

Your governing documents need special attention. They must include proper dissolution clauses and restrict activities to charitable purposes only.

We suggest having someone review your application before submission. Small errors in financial projections or unclear activity descriptions can trigger requests for more information.

Business plans should show how you'll operate sustainably. Include realistic revenue sources and expense estimates to demonstrate financial viability.

Seeking Professional Guidance

Professional assistance can reduce registration time and improve approval chances. We recommend consulting experts if your situation involves complex structures or unique activities.

Lawyers specializing in charity law help ensure your governing documents meet CRA standards. They know the specific language needed for charitable objects and dissolution clauses.

Consider professional help when:

• Your business model is complex
• You're incorporating and registering at the same time
• Your activities span multiple charitable categories
• You have previous application rejections

Accountants assist with financial projections and ongoing compliance requirements. They help structure your finances to meet CRA expectations from the start.

Investing in professional guidance often saves months of back-and-forth with the CRA. This is especially valuable for organizations eager to start fundraising.

Conclusion

Registering a charity in Canada takes 6 to 8 months for most applications. Simple foundation applications move faster at 3.5 to 4 months, while complex cases can take 18 months or more.

The timeline depends on how well you prepare your application and how clearly your purposes fit charitable categories. Incomplete applications or unclear activities create delays when the CRA asks for more information.

If you need help with charity registration, contact B.I.G. Charity Law Group. Our team guides organizations through the entire process, from drafting purposes to responding to CRA questions.

You can reach us at dov.goldberg@charitylawgroup.ca or (416) 488-5888. Visit CharityLawGroup.ca to learn more about our services or schedule a FREE consultation to discuss your charity registration needs.

Frequently Asked Questions

Setting up a charity in Canada usually takes 6-8 months through the CRA review process. Costs range from filing fees to professional assistance, and different charity types have varying timelines and requirements.

How long does it take to set up a charity in Canada?

The process to register a charity in Canada takes 6-8 months on average. This timeline starts when you submit a complete application to the Canada Revenue Agency.

Simple applications with clear charitable purposes may take 4-6 months. Complex applications involving international activities or new purposes can take 12-18 months or longer.

The CRA estimates that straightforward applications usually need about two months of processing time. However, most applicants wait longer due to questions or requests for more information.

How quickly can you set up a charity?

The fastest charity registration takes about 4 months for very simple cases. This happens when your application is complete and your charitable purposes clearly fit established categories.

Most organizations should plan for 6-8 months from application to approval. Rushing the application often leads to delays when the CRA requests missing information.

You can prepare faster by having all documents ready before applying. This includes governing documents, activity plans, and financial projections.

How much does it cost to register a charity in Canada?

The CRA doesn't charge fees to register a charity. However, you'll have other costs during the process.

Incorporation costs range from $35-$250 depending on your province. Federal incorporation costs $200 for online filing or $250 for paper applications.

Legal assistance typically costs $500-$2,000 for incorporation. Professional help with your charity application can cost $2,000-$10,000 depending on complexity.

You'll also need name searches, which cost $12-$100. These fees vary by province and search type.

How long does it take to submit charity account?

Registered charities must file their annual return within six months of their fiscal year-end. This deadline applies to the T3010 form that all charities must complete.

The time to prepare and submit your return depends on your record-keeping systems. Well-organized charities can complete simple returns in a few hours.

More complex organizations may need several days or weeks to gather information. We recommend starting at least two months before your deadline.

Failure to file on time can result in penalties or loss of charitable status.

How long does it take to set up a charitable foundation?

Charitable foundations usually take 3-4 months to register with the CRA. This is faster than charitable organizations because foundations have simpler structures.

Public foundations collect money from various donors to fund other charities. Private foundations usually receive funding from one donor or family.

The application process follows the same steps as other charities. However, foundations face fewer questions about direct charitable activities.

You still need to incorporate first, which adds 1-4 weeks to your total timeline.

How to set up a charitable foundation in Canada?

Setting up a charitable foundation in Canada involves four main steps through the CRA. You need to determine your charitable purposes, incorporate, prepare your application, and complete the review process.

First, incorporate your foundation either federally or provincially. This step creates your legal structure and governing documents.

Next, complete the Application to Register a Charity Under the Income Tax Act. Include detailed information about your purposes and funding plans.

Submit all required documents, such as governing documents and director information. Add financial projections to your application.

The CRA reviews your application and may ask for more information.

Private foundations face extra restrictions on business holdings and donor control. Public foundations have more flexibility and must show broad public support.