Could registration be right for you?

Your answers to these six questions will give you the basic knowledge to make an informed decision about applying for registration as a charity.

Note

This information is for your reference only. No decision will be made based on your answers if you choose to apply for registration.

1. Will your organization be resident in Canada?

Yes

Unsure

You state that your organization will be resident in Canada.

To qualify for registration as a charity, your organization must be resident in Canada and created or established in Canada. An organization that is incorporated in Canada (federally, provincially, or territorially) is deemed to be resident in Canada. The decision to consider an organization created by a trust or constitution as resident in Canada depends on the individual circumstances of each one.

You state that your organization will not be resident in Canada.

If your organization is not resident in Canada and created or established in Canada, it cannot qualify for registration as a charity. An organization that is incorporated in Canada (federally, provincially, or territorially) is deemed to be resident in Canada. The decision to consider an organization created by a trust or constitution as resident in Canada depends on the individual circumstances of each one.

You state that you are unsure if your organization will be resident in Canada.

2. Will your organization have charitable purposes under one or more of these categories?

the relief of poverty
the advancement of education
the advancement of religion
other purposes that benefit the community in a way the courts have identified as charitable

Yes

Unsure

You state that your organization will have charitable purposes under one or more of the four categories.

To qualify for registration as a charity, your organization must have purposes that are exclusively charitable and charitable activities that support those purposes. The purposes describe the aim or main intent of your organization. The activities describe how your organization will carry out its purposes.

The term charitable is not defined in the Income Tax Act, so common law (court decisions) is used to decide what is charitable. The courts identified four charitable categories. Your organization’s purposes must fall into one or more of these categories to be considered for registration as a charity. For more information, go to What is charitable?

You state that your organization will not have charitable purposes under one or more of the four categories.

If your organization’s purposes are not exclusively charitable and its charitable activities do not support charitable purposes, it cannot qualify for registration as a charity. The purposes describe the aim or main intent of your organization. The activities describe how your organization will accomplish its purposes.

The term charitable is not defined in the Income Tax Act, so common law (court decisions) are used to determine what is charitable. The courts have identified four charitable categories. Your organization’s purposes must fall into one or more of these categories to be considered for registration as a charity. For more information, go to What is charitable?

You state that you are unsure if your organization will have charitable purposes under one or more of the four categories.

3. Does your organization plan to recruit volunteers or hire employees?

Yes

Unsure

You state that your organization plans to recruit volunteers or hire employees.

The success of a charity can depend on having volunteers or employees to run it on an ongoing basis. If you hire employees, you have to submit payroll deductions. For more information, go to Employer responsibilities – The payroll steps.

You state that your organization does not plan to recruit volunteers or hire employees.

You state that you are unsure if your organization will recruit volunteers or hire employees.

4. Will you have the time and commitment to meet the ongoing obligations your organization will have if it is registered as a charity, such as filing an annual return?

Yes

Unsure

You state that you will have the time and commitment to meet the ongoing obligations your organization will have if it is registered as a charity.

To keep its registration, a charity has to:

devote its resources to charitable purposes and activities
direct and control how it uses its resources
file an annual information return
issue complete and accurate receipts for donations
meet an annual spending requirement
keep proper books and records
maintain its status as a legal entity

For more information, go to Obligations of registration.

You state that you will not have the time and commitment to meet the ongoing obligations your organization will have if it is registered as a charity.

If a registered charity does not meet its obligations, it will face consequences (see next result box). To keep its registration, a charity has to:

devote its resources to charitable purposes and activities
direct and control how it uses its resources
file an annual information return
issue complete and accurate receipts for donations
meet an annual spending requirement
keep proper books and records
keep its status as a legal entity

For more information, go to Obligations of registration.

You state that you are unsure if you will have the time and commitment to meet the ongoing obligations your organization will have if it is registered as a charity.

If a registered charity does not meet its obligations, it will face consequences (see next result box). To keep its registration, a charity has to:

devote its resources to charitable purposes and activities
direct and control how it uses its resources
file an annual information return
issue complete and accurate receipts for donations
meet an annual spending requirement
keep proper books and records
keep its status as a legal entity

For more information, go to Obligations of registration.

5. Are you aware of the consequences of not meeting the obligations of registration, such as penalties, suspension, or loss of registration?

Yes

You state that you are aware of the consequences of not meeting the obligations of registration.

A registered charity that does not meet its obligations may have its tax receipting privileges suspended or have to pay penalties. It could also lose its registration. For more information, go to Consequences of not meeting the obligations of registration (non-compliance).

You state that you are not aware of the consequences of not meeting the obligations of registration.

If a registered charity does not meet its obligations, it may have its tax receipting privileges suspended or have to pay penalties. It could also lose its registration. For more information, go to Consequences of not meeting the obligations of registration (non-compliance).

6. Are you aware of the consequences if your organization is revoked or you decide to end your organization’s operations?

Yes

You state that you are aware of the consequences if your organization is revoked or you decide to end your organization’s operations.

When a charity is revoked or chooses to end its operations, it can no longer issue official donation receipts and no longer qualifies for exemption from income tax as a registered charity. As well, it must give all its remaining assets to an eligible donee or pay a revocation tax equal to the full value of the assets. For more information, go to Consequences of revocation or Consequences of terminating registration (voluntarily).

You state that you are not aware of the consequences if your organization is revoked or you decide to end your organization’s operations.

If a registered charity is revoked or chooses to end its operations, it can no longer issue official donation receipts and no longer qualifies for exemption from income tax as a registered charity. As well, it must give all its remaining assets to another eligible donee or pay a revocation tax equal to the full value of the assets. For more information, go to Consequences of revocation or Consequences of terminating registration (voluntarily).

Important messages:

As a director or a trustee of a registered charity, you are fully responsible for administering and managing the charity and making sure it follows the laws and regulations. For more information, watch the recorded webinar Orientation for New Board Members.
The eligibility of each board member may impact whether your organization can be registered. See CG-024, Ineligible individuals for more information.
The Canada Revenue Agency keeps a list of Canadian registered charities. Information about each registered charity is available to the public on the Charities Listings page.

Choose a theme

Could registration be right for you?

Note

You state that your organization will be resident in Canada.

You state that your organization will not be resident in Canada.

You state that you are unsure if your organization will be resident in Canada.

You state that your organization will have charitable purposes under one or more of the four categories.

You state that your organization will not have charitable purposes under one or more of the four categories.

You state that you are unsure if your organization will have charitable purposes under one or more of the four categories.

You state that your organization plans to recruit volunteers or hire employees.

You state that your organization does not plan to recruit volunteers or hire employees.

You state that you are unsure if your organization will recruit volunteers or hire employees.

You state that you will have the time and commitment to meet the ongoing obligations your organization will have if it is registered as a charity.

You state that you will not have the time and commitment to meet the ongoing obligations your organization will have if it is registered as a charity.

You state that you are unsure if you will have the time and commitment to meet the ongoing obligations your organization will have if it is registered as a charity.

You state that you are aware of the consequences of not meeting the obligations of registration.

You state that you are not aware of the consequences of not meeting the obligations of registration.

You state that you are aware of the consequences if your organization is revoked or you decide to end your organization’s operations.

You state that you are not aware of the consequences if your organization is revoked or you decide to end your organization’s operations.

Important messages:

This basic knowledge will help you make an informed decision about applying for registration.

Thank you for your help!

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