Consequences of not meeting the obligations of registration (non-compliance)
If we find that a registered charity is not meeting its obligations under the Income Tax Act, we may use one or more of the following compliance measures:
Education letters – These guide charities through the steps they need to follow to be compliant.
Compliance agreements – These outline areas of non-compliance and commit charities to correct those areas.
Sanctions – These include financial penalties and temporary suspensions of both charities’ tax-receipting privileges and their status as qualified donees.
Revocation – This is the loss of charitable registration and the privileges that go with it. We use revocation in serious cases of non-compliance with the Act.