How to Register a Charity in Toronto and across Canada?

If you’re looking to register a charity in Toronto, it’s important to follow the proper steps to ensure your organization complies with Canadian regulations. Whether you're new to the registration process or already operating a charity and want to make updates, this guide will help you understand how to draft your charitable purposes and activities for a smooth registration with the Canada Revenue Agency (CRA).

What Are Charitable Purposes and Activities?

To register a charity in Toronto, your organization must be created exclusively for charitable purposes and must carry out activities that directly support these purposes.

• Charitable purposes (also known as "objects") are the specific goals your charity aims to achieve.
• Charitable activities are the actions your organization takes to achieve these goals.

Your governing document, which could be your articles of incorporation or constitution, must clearly outline both purposes and activities.

Categories of Charitable Purposes in Canada

The CRA requires that all charities fall under one or more of the following categories:

Relief of poverty

Example: Providing shelter or food for homeless individuals in Toronto.

Advancement of education

Example: Offering scholarships or tutoring services to underserved communities in the city.

Advancement of religion

Example: Supporting religious education programs or maintaining places of worship.

Other purposes that benefit the community

Example: Promoting public health, environmental sustainability, or arts and culture in Toronto.

In addition to these purposes, a charity may also be constituted to make gifts to qualified donees, such as other registered charities in Toronto.

Steps to Drafting Charitable Purposes and Describing Activities

When preparing to register your charity in Toronto, you must draft your charitable purposes and describe the activities you plan to carry out in a way that meets CRA standards. Here are some tips to help you do this:

1. Be Clear About the What, How, and Who

For each charitable purpose, you need to specify:

• What: The charitable category (e.g., advancement of education).
• How: How your charity will achieve the charitable purpose.
• Who: The group of people that will benefit from your charity’s activities (e.g., low-income families, students, etc.).

For example, if your charity's purpose is to advance education, you could draft something like:

“To advance education by providing scholarships to high school students in Toronto who demonstrate academic excellence and financial need.”

In this case, the what is advancing education, the how is providing scholarships, and the who is Toronto high school students.

2. Be Detailed When Describing Activities

Once you've outlined your purposes, it’s important to describe the activities your charity will conduct in detail. For example, if your charity plans to provide educational resources, include specific details such as:

• The types of resources or scholarships you’ll offer.
• How you will select the recipients.
• How often these resources will be distributed.

This level of detail helps the CRA understand how your charity will benefit the public in Toronto and ensures your activities align with your charitable purposes.

3. Make Sure Your Activities Support Charitable Purposes

All activities your charity undertakes should directly support the charitable purposes outlined in your governing documents. For instance, if your purpose is the relief of poverty, offering free legal advice to low-income families in Toronto would align with this purpose. However, activities that do not directly support your charitable purposes, such as operating a commercial business, would not qualify.

4. Stay Compliant with CRA Guidelines

It’s essential to stay informed about the CRA’s guidelines for charities. The CRA provides detailed guidance on how to draft charitable purposes and describe activities, such as in CG-019: How to draft purposes for charitable registration. By following these resources, you can avoid errors in your registration and ensure your charity’s success.

How to Register Your Charity in Toronto

Once you’ve drafted your charitable purposes and activities, follow these steps to complete the registration process:

1. Incorporate Your Charity
   In Toronto, most charities choose to incorporate either federally,  through the Canada Not-for-Profit Act or provincially through the Ontario Not-for-Profit Corporations Act (ONCA). Incorporating your charity gives it legal status and provides certain protections for its members and directors.
2. Complete Application to Register a Canadian Charity
   This form is required by the CRA to apply for charitable status. You'll need to include your charity's governing documents, a list of directors, and detailed descriptions of your purposes and activities.
3. Submit Your Application to the CRA
   Once you’ve filled out Form T2050 and prepared all necessary documents, submit your application to the CRA for review. The CRA will examine your application to ensure that your charity meets the legal requirements for charitable registration.
4. Wait for the CRA’s Response
   The CRA may take 6-8 months to review your application. During this time, they may ask for additional information or clarification. Be sure to respond promptly to any requests to avoid delays.
5. Receive Your Registered Charity Status
   Once your charity is approved, the CRA will issue you a charitable registration number, allowing you to issue official donation receipts and receive certain tax benefits.
   
   

What If You Want to Change Your Charity’s Purposes or Activities?

If your Toronto-based charity wants to change its charitable purposes or start new activities, it’s important to consult the CRA before making these changes. The CRA ensures that:

• Your charity’s activities are still charitable in nature.
• Your new purposes support your planned activities.
• Your charity maintains its registered status.

After you make any changes, you must submit your amended governing documents to the CRA for review.

How the CRA Can Help

The CRA’s Charities Directorate offers resources and support to help Toronto charities navigate the registration process and stay compliant. You can contact their client service team at 1-800-267-2384, Monday through Friday, from 8 a.m. to 5 p.m. Eastern Time.

Additionally, the CRA provides service standards to outline how quickly they respond to inquiries and process applications. Be sure to check their service standards for 2024–2025 to stay informed about wait times.

When registering a charity in Toronto or across Ontario and Canada, it's important to have a clear understanding of how to articulate your charitable purposes and provide detailed descriptions of your activities. Adhering to the guidelines set by the CRA will help ensure that your charity complies with legal standards and continues to positively impact the community. If you require assistance during the process, the CRA’s Charities Directorate is ready to provide guidance.

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