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Red Flags That Could Derail an Application The CRA looks for specific warning signs that signal an organization may not qualify. Avoiding these is critical:
• Incomplete or Inconsistent Documentation: Missing forms, conflicting information (name, address, board, dates) across documents, or vague activity descriptions.
• Non-Charitable Objects or Activities: Including business ventures for profit, political advocacy as a main goal, social clubs, or professional associations, or mixing charitable and non-charitable purposes in governing documents.
• International Activities Without Proper Oversight: Lack of direct control, detailed agreements, reporting, financial tracking, or due diligence for foreign partners.
• Inadequate Governance Structures
• Financial Irregularities: Excessive administrative costs, payments to related parties, unclear revenue sources, missing financial controls, or any indication of private benefit.
• Missing Required Clauses: Failure to include essential non-profit, dissolution, charitable purposes clauses in governing documents.
By carefully preparing and reviewing the application against these comprehensive requirements, organizations can significantly improve their chances of successful registration. Professional legal help, such as from B.I.G. Charity Law Group, is recommended for complex cases, novel programs, or after a previous rejection.
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