Ever wonder why some private schools sail through charitable registration while others crash and burn? In this episode, we break down the top 10 reasons the Canada Revenue Agency sends school applications back with a polite "thanks, but no thanks" – and more importantly, how to avoid these costly mistakes.
What You'll Learn
The Technical Stuff (Made Actually Interesting)
- Why "mostly charitable" doesn't cut it with the CRA – and what "exclusively charitable" really means
- The difference between education and persuasion (hint: your curriculum shouldn't read like a campaign brochure)
- Why posting information online and calling it "education" will get you rejected faster than you can say "YouTube playlist"
The Structural Requirements They Don't Tell You About
- The three non-negotiable elements of "structured education" the CRA demands
- What "legitimate, targeted attempt to educate" actually means (spoiler: hoping people learn something isn't enough)
- Why you need both a teaching component AND a learning component – and what happens when you only have one
The Public Benefit Landmines
- How to restrict your beneficiaries without restricting them too much (it's a delicate balance)
- Why scholarships for "employees of XYZ Company only" will sink your application
- The types of restrictions that might have been acceptable in 1950 but will absolutely get you rejected today
The Private Benefit Problem
- Where the line is between acceptable fees and "using charity status as a tax dodge"
- How to pay your staff fairly without the CRA thinking you're running a profit center
- Why your activities and your stated purposes need to match – or else
Key Takeaways
- Structure is non-negotiable: Educational goals, course outlines by qualified people, and substantial materials are all required
- Objectivity matters: You can teach from a perspective, but you can't just promote your favorite viewpoint
- Public means public: Your beneficiaries can't be "people you personally know"
- Document everything: The CRA wants proof you're actually educating, not just hoping education happens
- Get expert help: Charity law is complex – hire a lawyer who specializes in it
Who Should Listen
- Founders of private schools considering charitable registration
- School administrators who've had applications rejected and want to know why
- Anyone navigating the confusing world of educational charity registration in Canada
- People who enjoy learning about obscure legal requirements (we see you, fellow nerds)
.jpg)
.png)