CRA Compliance

Guidelines for Charitable Receipting: What Canadian Registered Charities Should and Should Not Do

Canadian registered charities and other qualified donees have the privilege of issuing "official donation receipts," which is a critical aspect of their operations. However, many charities face compliance issues due to a lack of understanding of the receipting requirements, putting both the orga....

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Are Your Fundraising Activities in Compliance with CRA Guidelines?

The necessity of fundraising for many charities is recognized by the Canada Revenue Agency (CRA), but it also expects that charities will not allocate an unreasonable amount of resources to fundraising activities. The CRA offers guidance on determining what it deems excessive.

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Legal Guidelines for Fundraising Events for Canadian Charities

If you organize a charity fundraising event, you are not authorized to provide receipts for donations made on behalf of the charity. Only the charity has the authority to issue such receipts. Furthermore, providing its registration number for receipting purposes may cause a charity to lose its......

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What are Typical Penalties & Consequences for Charity Non-Compliance?

The responsibility of ensuring compliance with the Income Tax Act for registered charities falls under the purview of the Canada Revenue Agency (CRA). CRA may employ various measures to foster and uphold compliance with the Act, or to penalize registered charities that fail to comply.

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Can a Canadian Charity Provide Benefits to its Directors?

In Canada, federal tax regulations and provincial laws typically forbid charities from providing compensation to directors for their services as directors. Despite this, several charities depend on their directors for tasks that go beyond governance, and there could be valid reasons for charities...

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Staying Updated: How to Keep the CRA Informed of Changes

Not all changes necessitate the approval of the CRA; nevertheless, some changes necessitate notifying them. It is highly recommended that you seek the input of a legal expert to review your alterations before presenting them to the CRA in several circumstances.

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Top Strategies for Effective Year-End Audit Preparation

Year-end audits for nonprofit organizations entail performing an impartial evaluation of their financial statements and records. The primary objective of these audits is to ensure that the organization's financial statements present an accurate representation of its financial position and perform...

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Compliance Obligations for Privacy Legislation: Charities and Not-for-Profits

As the Canadian privacy landscape undergoes significant changes, numerous charities and not-for-profits are grappling with the question of whether they must adhere to Canadian privacy laws. In this post, we aim to present a summary of how privacy laws in Canada are applicable to charities and not-..

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Is Assuming Control of an Inactive Canadian Charity Both Legally and Ethically Permissible?

In this post, we explore the following questions: "Is it permissible and morally acceptable to assume control of an inactive Canadian charity as a means to bypass the lengthy bureaucratic application process? And if so, what would be the most effective approach to do this?"

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A Guide to Charitable Receipting for Non-Cash Gifts

This post will concentrate on the guidelines established by the Canada Revenue Agency (CRA) concerning non-monetary donations, taking into account the complex and often misunderstood regulations governing the issuance of receipts.‍

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Restrictions on Donors' Options After Completing a Gift

A frequently overlooked aspect of Canadian charity law is the subtle provision in our Constitution, section 92(7), which grants the provinces the primary regulatory power over charities. However, provincial governments often choose not to actively exercise their jurisdiction in this realm, resulting

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What are the Required Government Filings for an Ontario Nonprofit

This article provides an overview of the necessary forms and documents that nonprofit organizations are required to submit to the government on an annual basis.

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Creating a Compliant Charity Website

In the digital age, virtually every charity organization boasts a website, an indispensable tool for communication and fundraising. For many, it serves as the epicentre of their operations. However, numerous organizations falter due to a lack of understanding about the dos and don'ts of website mana

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Tax Schemes and Illegal Tax Shelters Red Flags

A tax scheme refers to plans and arrangements designed to mislead taxpayers by promising to reduce their owed taxes, often through exaggerated deductions or the assurance of tax-free income. These schemes may also employ various tactics to persuade individuals to pay less than their actual tax li...

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Canadian Charities Prohibited from Supporting Terrorism

It is crucial to note the existence of a list containing designated terrorist organizations and individuals involved in such activities. However, supporting any organization involved in terrorism, whether listed or not, is strictly prohibited. This prohibition is particularly significant for organi.

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What types of letters might a charity receive after undergoing a CRA audit?

Explore the intricate world of post-CRA audit correspondence for charities. From education-first approaches to potential sanctions or revocation, delve into the compliance measures tailored to the severity of non-compliance. Uncover the nuances of education letters, compliance agreements, sanctions,

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What Happens If a Registered Charity Doesn't Meet its Obligations?

Explore the critical implications faced by registered charities failing to meet their obligations under the Income Tax Act. From compassionate guidance through education letters to the severe measures of financial sanctions and revocation, this article sheds light on the multifaceted consequences an

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How does the CRA interpret and implement accountability requirements?

This article demystifies the Canada Revenue Agency's guidelines on charity grant accountability, clarifying how charities should manage and document their grant funds to stay compliant and goal-oriented.

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How Does the Canada Revenue Agency Safeguard Charitable Compliance and Address Potential Disputes in the Audit Process?

Overview of Charity Audits in Canada: Emphasizing CRA's Compliance Enforcement

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Tips on Avoiding Mistakes When Filing Your Charity's T3010 Return

Learn how to avoid penalties and maintain your charity's status by following the T3010 checklist, including meeting filing requirements, describing activities accurately, providing complete information, and mailing documents to the correct address.

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Should Canadian Charities Comply with PIPEDA?

Exploring why Canadian charities must follow privacy laws like PIPEDA, covering applicability, commercial activities, provincial legislation, and compliance.

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CRA Makes It Easier to Access Their Digital Services for Authorized Representatives

Access CRA digital services faster with new ID validation: instant gov't ID verification or traditional mail option available. Simplify your interactions now!

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What Happens If You Don’t Comply With ONCA by October 18, 2024?

Nonprofit organizations in Ontario must update their governing documents to comply with the Ontario Not-for-Profit Corporations Act (ONCA) by October 18, 2024, or face potential legal, operational, and charitable status issues.

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What is the Importance of Art Form and Artistic Merit Criteria in Gaining Charitable Status in Canada?

Learn how art organizations in Canada can meet the art form and artistic merit criteria to gain charitable status, including establishing widespread acceptance, demonstrating artistic quality, and maintaining compliance.

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A Guide to CRA Compliance for Private Foundations in Canada

Discover the key compliance requirements and operational restrictions for private foundations in Canada. Learn about corporate procedures, financial tasks, provincial statutes, disbursement quotas, and tax implications to ensure your foundation operates effectively and makes a positive impact.

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Don’t Let Your Good Deeds Get Punished

B”H The proverb “No good deed goes unpunished” is one the charity space is all too familiar with. The rules and regulations around supporting your mission are seemingly never-ending. One minute you are just trying to fundraise so you can support your mission, the next you get caught up in one of the

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What Disqualifies an Organization from Being Able to Register as a Charity?

Here’s what separates the unqualified charities from the qualified:‍ · If the organization is set up to help individuals or private groups, such as helping an individual or family come to Canada for medical care, it will not qualify as a charity. · Organizations that give personal benefits or funds

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Agency Contract or Joint Venture Agreement for Charities Operating Through 3rd Party Intermediaries

What Must Be Included in An Agency Contract or Joint Venture Agreement for Charities operating through 3rd Party Intermediaries?‍ 1. Ensure that the 3rd party has the “reputation, expertise, capacity, and experience” to execute the activities.

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Exceptions to the Laws Guiding The Operation of a Canadian Charity

Arguably, exceptions to laws work just as functionally as laws do. They give nuances to laws and make provisions in certain circumstances. The rules governing human activities in general — and in this case — charity operations, are not agonizingly rigid because of the contemplation of nuances, conte

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Top 10 Canadian Charity Compliance Issues

Q. I was just appointed as a Director of a Charity. What are important compliance issues I need to monitor to stay in the good graces of the CRA Charities Directorate? A. The top 10 Compliance issues the CRA repeatedly focuses on are: Incorrect issuance of Receipts; Failure to file the annual T3010

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Changes to Your Charity

If you look at any organization five, ten or twenty years after it was created, it’s probably going to be very different. Just like people grow and change, companies and corporations evolve. So do charities. It’s not only expected that some things about your charity will change over time, but also a

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A Gift for A Gift

Q. We are a religious Charity based out of Winnipeg and have a donor who just gave us a huge donation, the biggest our charity has seen to date. It’s big, in the millions. We would like to show our appreciation by giving her a token gift. Is that allowed under Canadian Charity Law? Short Answer: Abs

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Charity Revocation: What You Need to Know

If you’re looking for information about registering a charity, there’s a good chance you have a big mission that you hope to achieve. That’s great, and it’s very noble to work towards changing the world. But, in case you haven’t discovered it yet, there are a lot of laws and regulations that govern

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