Canada Revenue Agency deregistering or revoking record number of questionable Canadian charities

August 03, 2010 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: Canadian Charity Law

Here is a list with the 2008 -  2011 deregistrations with scanned copies of the actual letters sent by CRA to the charities outlining their reasons for revoking or annulling their charitable status.  In some cases there are links to CRA press releases.

For a number of years CRA has been aggressively targeting charities that they consider to be either scams, abusive tax shelter schemes or were in serious non-compliance with their legal obligations.  . 

Here are some press releases from CRA on some of the charities that they have deregistered just in the last few years along with copies of some of the letters sent by CRA to the charities:


The Canada Revenue Agency revokes the registration of Operation Save Canada’s Teenagers as a charity (January 18, 2011)
http://www.cra-arc.gc.ca/nwsrm/rlss/2011/m01/nr110114-eng.html
Here is a copy of the letter or letters sent to Operation Save Canada’s Teenagers.


The Canada Revenue Agency revokes the registration of Revival Time Ministries International as a charity (January 12, 2011)
http://www.cra-arc.gc.ca/nwsrm/rlss/2011/m01/nr110107-eng.html
Here is a copy of the letter or letters sent by CRA to Revival Time Ministries International


The Canada Revenue Agency revokes the registration of Metro Street Focus Organization as a charity (December 10, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m12/nr101210-eng.html


The CRA revokes the registered status of Biathlon Canada (November 2, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m10/nr101029-eng.html


The Canada Revenue Agency revokes the charitable status of Christ Apostolic Church International - Canada (August 24, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m08/nr100820-eng.html


The Canada Revenue Agency revokes the charitable status of Tamil (Sri Lanka) Refugee-Aid Society of Ottawa (July 17, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m07/nr100717-eng.html


The CRA revokes the registered status of the Canadian Lacrosse Association (June 7, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m06/nr100607-eng.html


The Canada Revenue Agency revokes the charitable status of Henvey Inlet First Nation Community Support Organization (May 10, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m05/nr100510c-eng.html
Here is a copy of the letter or letters sent to Henvey Inlet First Nation Community Support Organization


The Canada Revenue Agency revokes the charitable status of The Orion Foundation (May 10, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m05/nr100510b-eng.html
Here is a copy of the letter or letters sent to The Orion Foundation by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of Liberty Wellness Initiative (April 19, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m04/nr100419-eng.html
Here is a copy of the letter or letters sent to Liberty Wellness Initiative by the Charities Directorate of CRA


The Canada Revenue Agency revokes the charitable status of Destiny Health and Wellness Foundation (April 19, 2010)
http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m04/nr100419b-eng.html

The Canada Revenue Agency revokes the charitable status of Alberta Distribution Relief Agency Aid Society International
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m09/nr090908-eng.html
Here is a copy of the letter or letters sent to Alberta Distribution Relief Agency Aid Society International by the Charities Directorate of CRA


The Canada Revenue Agency revokes the charitable status of New Hope Ministries Institute
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m09/nr090908-eng.html
Here is a copy of the letter or letters sent to New Hope Ministries Institute by the Charities Directorate of CRA


The Canada Revenue Agency revokes the charitable status of Jesus El Buen Pastor Spanish Pentecostal Church of Toronto
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m08/nr090810-eng.html
Here is a copy of the letter or letters sent to Jesus El Buen Pastor Spanish Pentecostal Church of Toronto by the Charities Directorate of CRA


The Canada Revenue Agency revokes the charitable status of Funds for Canada Foundation (August 10, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m08/nr090810b-eng.html
Here is a copy of the letter or letters sent to Funds for Canada Foundation by the Charities Directorate of CRA


The Canada Revenue Agency revokes the charitable status of The Mission Against Poverty Shelter (July 27, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m07/nr090727-eng.html
Here is a copy of the letter or letters sent to Mission Against Poverty Shelter by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of Living Waters Ministry Trust (June 8, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m06/nr090608b-eng.html
Here is a copy of the letter or letters sent to Living Waters Ministry Trust by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of Healing and Assistance Not Dependence Canada (June 8, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m06/nr090608-eng.html
Here is a copy of the letter or letters sent to Healing and Assistance not Dependence Canada  by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of The Children’s Emergency Foundation (May 11, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m05/nr090511-eng.html
Here is a copy of the letter or letters sent to the Children’s Emergency Foundation by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of Universal Aide Society (April 27, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m04/nr090427-eng.html
Here is a copy of the letter or letters sent to Universal Aide Society by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of the Dominion Christian Centre of Canada (February 17, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m02/nr090217-eng.html
Here is a copy of the letter or letters sent to Dominion Christian Centre of Canada by the Charities Directorate of CRA.


The Canada Revenue Agency annuls the charitable status of the Phoenix Community Works Foundation (February 9, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m02/nr090209-eng.html
Here is a copy of the letter or letters sent to Phoenix Community Works Foundation by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of The Millennium Charitable Foundation (January 12, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m01/nr090112-eng.html
Here is a copy of the letter or letters sent to The Millennium Charitable Foundation by the Charities Directorate of CRA.


CRA revokes the registered status of Little League Baseball Canada (January 12, 2009)
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m01/nr090112b-eng.html


The Canada Revenue Agency revokes the charitable status of the Fondation des Arts H.B. Ltée/H.B. Arts Foundation Ltd. (December 8, 2008)
http://www.cra-arc.gc.ca/nwsrm/rlss/2008/m12/nr081208-eng.html
Here is a copy of the letter or letters sent to Fondation des Arts H.B. Ltée/H.B. Arts Foundation Ltd. by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of the Pinnacle Foundation (November 17, 2008)
http://www.cra-arc.gc.ca/nwsrm/rlss/2008/m11/nr081117b-eng.html
Here is a copy of the letter or letters sent to Pinnacle Foundation by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of the Choson Kallah Fund of Toronto (November 3, 2008)
http://www.cra-arc.gc.ca/nwsrm/rlss/2008/m11/nr081103b-eng.html
Here is a copy of the letter or letters sent to Choson Kallah Fund of Toronto by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the charitable status of The Banyan Tree Foundation (October 20, 2008)
http://www.cra-arc.gc.ca/nwsrm/rlss/2008/m10/nr081020-eng.html
Here is a copy of the letter or letters sent to The Banyan Tree Foundation by the Charities Directorate of CRA.


The Canada Revenue Agency revokes the registered status of the Canadian Amateur Football Association (September 3, 2008)
http://www.cra-arc.gc.ca/nwsrm/rlss/2008/m09/nr080903-eng.html


The Canada Revenue Agency revokes the charitable status of International Charity Association Network (August 11, 2008)
http://www.cra-arc.gc.ca/nwsrm/rlss/2008/m08/nr080811-eng.html
Here is a copy of the letter or letters sent to the International Charity Association Network by the Charities Directorate of CRA.


CRA revokes charitable status of the Francis Jude Wilson Foundation (March 5, 2008)
http://www.cra-arc.gc.ca/nwsrm/rlss/2008/m03/nr080305-eng.html
Here is a copy of the letter or letters sent to the Francis Jude Wilson Foundation by the Charities Directorate of CRA.

Here are some other letters from CRA to charities that were revoked for cause:

CRA letter to Canadian Ptach Society
CRA letter to Give2Asia
CRA letter to Children’s Leukemia Research Association Canada
CRA letter to Rich Wilkerson Ministries
CRA letter to ASL Charity Foundation
CRA letter to Pediatric AIDS Canada/USA
CRA letter to Essential Grace Foundation
CRA letter to Malachi_3_10_Foundation
CRA letter to The Gateway Benevolent Society
CRA letter to Prescient Foundation
The Malvern Rouge Valley Youth Services


Here is a letter from CRA to Toronto Abundant Life Fellowship Assemblies dealing with receipting, books and records and foreign activity issues.

Here is a letter from CRA to M & RM Training Centre & Workshop Toronto

Here is a letter from CRA to Grace Christians Assembly

Here is a letter from CRA to Empowering Youth.

As an aside you might think that this means that the number of charities being delisted is greater now than in the past but that is actually not the case.  You see it used to be about 2000 charities lost their charitable status every year, almost all because of failure to file their annual T3010 Registered Charity Information Return and only 25 -30 for “cause”.  CRA has been working hard to remind charities to file their T3010 and the number who are failing to do so has dropped substantially to about 600 per year.  Therefore, even if CRA is deregistering more charities for cause, the total number of charities losing their registered charity status has declined substantially.

It is important to note that CRA has stated on dozens of occasions that:
 
“The CRA is reviewing all tax shelter-related donation arrangements (for example, schemes that typically promise donors tax receipts worth more than the actual amount of the donation), and it plans to audit every participating charity, promoter, and investor. For more information about tax shelters, go to the CRA’s Tax alert Web page at http://www.cra.gc.ca/alert.”

Let me put it another way.  If you are a professional advisor and you want your client to be audited by CRA, the quickest way to accomplish this is to suggest that they “invest” in a charity donation tax shelter.  Also if you are a professional advisor who recommends to his or her client to invest in such schemes you can expect to potentially be sued by that client when the scheme does not work. 

Documents that have been scanned above were requested from CRA and sent to us by them.  Anyone can request copies of CRA letters after the revocation of a charity.  The scanned copies are not an “official version of the materials” and the provision of such material has not been made in affiliation with, or with the endorsement of, the CRA. 

 

 

Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

mark@blumbergs.ca
416.361.1982
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