Charity and Not For Profit Statutes | B.I.G. Charity Law Group

Can a Registered Charity Accumulate Funds?

Under Income Tax Act S. 149.1(8), a registered charity can apply to the CRA for written approval to accumulate funds for a specific purpose. Approved accumulations are excluded from the disbursement quota calculation. Learn how this provision works and how to apply.

What is a Public Foundation Under the Income Tax Act?

Under Income Tax Act S. 149.1(6.3), the CRA can designate or re-designate a registered charity as a charitable organization, public foundation, or private foundation. Learn what a public foundation is, how the designation works, and what rules apply.

How Must a Charitable Organization Allocate its Resources?

Under Income Tax Act S. 149.1(6), a charitable organization devotes its resources to charitable activities through its own programs, related businesses, or by disbursing up to 50% of income to qualified donees. Learn how this rule affects your charity's structure and grant-making activities.

What is a Charitable Organization Under the Income Tax Act?

Under Income Tax Act S. 149.1, a charitable organization must be constituted exclusively for charitable purposes, devote all resources to its own charitable activities, have no private benefit, and maintain a majority arm's-length board. Learn what this definition means for your organization.

Revocation of Registration of a Canadian Amateur Athletic Association

Under Income Tax Act S. 149.1(4.2), a registered Canadian amateur athletic association can have its registration revoked for unrelated business activity, control by ineligible individuals, or accepting gifts from listed foreign states. Learn the compliance rules for RCAAAs in Canada.

Revocation of Registration of a Registered Charity

Under Income Tax Act S. 149.1(4.1), a registered charity's status can be revoked for tax avoidance transactions, false registration statements, control by ineligible individuals, or accepting gifts from listed foreign states. Learn the serious compliance failures that trigger this provision.

Revocation of Registration of a Public Foundation

Under Income Tax Act S. 149.1(3), a public foundation's registration can be revoked for unrelated business activity, failing the disbursement quota, acquiring corporate control, or incurring non-permitted debts. Learn the compliance rules specific to public foundations in Canada.

Revocation of Registration of a Private Foundation

Under Income Tax Act S. 149.1(4), a private foundation's registration can be revoked for carrying on any business, failing to meet the disbursement quota, holding excess shares, or incurring non-permitted debts. Private foundations face the strictest compliance rules of all Canadian charity types.

Revocation of Registration of a Charitable Organization

Under Income Tax Act S. 149.1(2), the CRA can revoke a charitable organization's registration for carrying on unrelated business, failing to meet the disbursement quota, or making improper gifts. Learn the specific grounds for revocation and how to stay compliant.

Revocation of Charity Registration

Under Income Tax Act S. 168(2), a charity's registration is formally revoked when the CRA publishes the revocation notice in the Canada Gazette — typically 30 days after the initial notice. Learn the revocation process, the revocation tax, and how to appeal.

Revocation of a Qualified Donee

Under Income Tax Act S. 149.1(4.3), the CRA can revoke the registration of a qualified donee — including registered charities — using the same process as charity revocation under s. 168. Learn what qualified donee status means and what triggers revocation.

Penalties for Charities Involved in Unrelated Business

Canadian charities that carry on unrelated business activities face a penalty of 5% of gross revenue under Income Tax Act S. 188.1(1). Private foundations are prohibited from carrying on any business. Learn the rules and how to structure your charity's activities to stay compliant.

Notice of Intention to Revoke Charity Registration

Under Income Tax Act S. 168(1), the CRA Minister can issue a Notice of Intention to Revoke a charity's registration for reasons including failure to file the T3010, issuing improper receipts, or non-compliance. Learn what triggers an NIR and how to respond.

How Often do Members of a Not-for-Profit Corporation have to Hold a Meeting?

Canadian not-for-profit corporations must hold an Annual General Meeting (AGM) within 15 months of the previous AGM and within 6 months of fiscal year end, per the Canada Not-for-Profit Corporations Act s. 160(1). Learn what this means for your organization and how to stay compliant.

What Provisions are Required in Not-for-Profit Articles of Incorporation?

Under the Canada Not-for-Profit Corporations Act s. 7(1), Articles of Incorporation must include the corporation's name, registered office, membership classes, number of directors, activity restrictions, purpose statement, and property distribution on liquidation. Learn why getting these right matters for future charity registration.

Who is Eligible to Incorporate and be Appointed as a Director of a Not-for-Profit Corporation?

Under the Canada Not-for-Profit Corporations Act s. 6(2), an individual must be at least 18 years old, legally capable, and not bankrupt to incorporate a federal not-for-profit. Learn the eligibility requirements for incorporators and directors, including CRA's ineligible individual rules.

What is the Minimum Number of Incorporators Needed to Start a Not-for-Profit Corporation?

Under the Canada Not-for-Profit Corporations Act s. 6(1), only one individual or body corporate is needed to incorporate a federal not-for-profit. Learn what this means in practice and why most charity lawyers recommend starting with at least three directors.