Relief of Poverty Application Denied (and How to Fix It)

The CRA rejects many poverty relief charity applications because organizations fail to understand what actually constitutes poverty relief versus prevention, or they provide benefits that exceed what's needed for a "modest but adequate" standard of living.

Common pitfalls include poorly defined beneficiary groups, inadequate selection processes for determining who's truly experiencing poverty, and accidentally providing benefits to named individuals rather than a genuine public class.

Organizations also trip up by offering luxury items instead of basic necessities, failing to maintain proper documentation, or restricting their beneficiary groups in ways that violate the "poor relations" exception.

Understanding these requirements—from what counts as a simple amenity to how to properly assess income thresholds—can mean the difference between approval and a rejection letter.