Applying for Registered Charity Status

The Blumbergs' Canadian Charity Law Boot Camp will be held again on Monday April 8, 2019. This is a one-day boot camp on compliance and standards issues for Canadian registered charities. You can register for the program here. 

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The Canadian Charity Law Association is delivering some upcoming webinars. Registration is free but space is limited. Topics are subject to change. 

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On March 15, 2019, CRA announced that there will be changes to the T3010 Annual Return and the T2050 Application to Register a Charity to account for the recent changes to the political activities rules for Canadian registered charities. Instead of reporting on their political activities, charities will report their public policy dialogue and development activities (PPDDAs). According to CRA, registered charities will have less to report for PPDDA than they previously reported for their political activities. The changes to the T3010 and T2050 are set to come in November 2019. Until the changes are made, CRA has provided instructions on how to fill out the current T3010 and T2050 for PPDDA. 

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Finance Minister Morneau delivered the 2019 Federal Budget today.  Here is our article "2019 Canadian Federal Budget - How will it affect the Canadian charitable sector?"

Finance has already released a Fall Economic Statement that did contain a number of initiatives relating to the charity sector and you can see our article "Finance 2018 Fall Economic Statement and its Impact on Canadian Charities, Journalism and Social Finance".   

We have created a course entitled "Should We Establish a Canadian Social Enterprise, Non-Profit or Charity and How to Do It?".   The course is $149 and you can register at https://charity-law.teachable.com/   Here is an overview of the course:

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On Thursday December 13, 2018, Bill C-86 received Royal Assent. Within this Bill, there are several changes to the Income Tax Act related to charities, especially with regards to political activities.  The change allows Canadian registered charities to conduct public policy dialogue and development activities (PPADA) connected to the legal purpose of the charity as long as they are not directly or indirectly partisan.   We are awaiting guidance from CRA on how they will interpret the new provisions on political activities.  Also the CWP decision will probably one day end up in the Supreme Court of Canada and perhaps they will have a thing or two to say about political activities and how purposes and activities relate to registered charity status.  

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The CRA released today their Report on the Charities Program 2016 to 2018.  They note: "We made the report shorter by reducing the amount of text and added more visuals. The report is now easier to understand and has a more modern look."  There is far less information in this report than previously provided which is unfortunate.   Although with all the crazy changes Finance is coming up with on political activities I am surprised that CRA had the time to prepare this report at all. 

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The Government of Canada recently announced that it will now be using the Market Basket Measure (“MBM”) to measure Canada’s poverty line. Previously, Canada did not have an official measure of poverty; rather MBM was used along with Low Income Cut-Off (‘LICO’) and low income measure (‘LIM’). With Canada’s First Poverty Reduction Strategy, announced in August 2018, the Federal Government needed an official poverty measure to guide this new strategy.

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On Monday November 19, 2018 I presented to the Special Senate Committee on the Charity Sector in Ottawa.  My presentation dealt with a number of areas especially transparency of non-profits and registered charities, good charity regulation, and political activities by charities.

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Here is our article Finance 2018 Fall Economic Statement and its Impact on Canadian Charities, Journalism and Social Finance.   

Even with the Ontario Not-for-Profit Corporations Act ("ONCA") looming, we are still seeing recently incorporated non-profits that are set-up under the Ontario Corporations Act ("OCA"). Here is an article on some of the reasons why this is generally not a good idea, and why it is better for our clients to set up new entities under the federal Canada Not-for-profit Corporations Act ("CNCA").

Here is our updated article on Foreign Universities Applying for Prescribed University Status in Canada 2018.  If your university or alma mater is outside of Canada then this article can be vital in terms of understanding how to more easily and tax effectively fundraise from Canada.  

The CRA announced today that they are delaying the Charities IT Modernization Project (CHAMP) till June 2019. When CHAMP is launched, charities will no longer be able to make application by paper application and will have to use the CHAMP system. As well, although not required, charities will be able to file the T3010 under the CHAMP system.   Because all charity applications will need to go through CHAMP, it is ideal that it works seamlessly and if that means a delay of 6 or 7 months, I don't think many people will care.

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I am still surprised at the number of Canadian fundraisers that I meet who have not read the CRA's Fundraising Guidance or have read it but don't remember any of the details!   Here is the Fundraising Guidance on the CRA site and here is a PDF version of the CRA Fundraising Guidance as of May 2018.   If your Canadian registered charity is fundraising then you should be aware of this guidance.   CRA is auditing charities that are not complying with the requirements and in some cases revoking them.  I have put up a number of letters from CRA on our website that CRA wrote to charities as part of the revocation process.  These letters show the actual implementation of the fundraising guidance.

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I will be delivering three presentations in Fort McMurray on Tuesday May 29, 2018 around non-profits and charity compliance issues as well as setting up social enterprises, non-profits and charities.  If you are in the area you might find them helpful.

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We recently wrote about obtaining the CRA guidance on advancement of religion at CRA’s Draft Guidance Advancement of religion and charitable registration is released through ATIP.  That article included a July 2016 version of the CRA guidance on religion which had not been released by CRA except through the ATIP request.  Apparently CRA has been using that guidance or similar guidance since 2013.  We recently obtained another copy of the draft guidance advancement of religion and charitable registration dated May 2017.  The text is identical to the 2016 version so we know that at least until May 2017 this document was the internal guidance of CRA on advancement of religion and charity registration.

Here is our article Common Paragraphs from CRA in the Notification of Registration Regarding Operating a Registered Charity.  It provides many of the common warnings or suggestions from CRA that are included in Notifications of Registration from the Charities Directorate.   

Here is our article CRA letter on Ineligible Individual and Impact on Charity Application which provides a copy of a standard letter when CRA determines that an ineligible individual may be involved with a charity application.   

Here is our article CRA releases information on Universities Outside Canada - good news for foreign universities.  This will be of interest to universities outside of Canada whether they are prescribed foreign universities or not.   

Understanding legal compliance for registered charities is not easy but Blumbergs is offering exciting new upcoming events in 2018 that will help.   

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CRA has been sending this insert in various mailings reminding Canadian registered charities that the new move to electronic filing of charity applications and the optional ability to file T3010s online is starting in November 2018.  Charities should start to prepare to use the new facility by setting up a MyBA account if they don't have one already.   Charities can already use the MyBA for limited purposes such as changing their address online.   

CRA has noted on the Charities IT Modernization Project (CHAMP) page that internal divisions will be able to access the CRA online system without obtaining a new BN number.  In September of 2017 we blogged about developments relating to "head bodies" and "internal divisions".  Previously they had said that they will be issuing new distinct BN numbers to each internal division but now they will not.

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Barry Bussey published an op ed in The Province on the Canada Summer Jobs program and the reluctance of the CRA Minister to release it guidance on religion which has essentially been complete for a number of years. 

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The CRA has updated their T2050 - Application to Register a Charity Under the Income Tax Act (CRA).  The changes appear to reflect the updated URLs for the CRA documents at the Canada.ca website. As of November 2018 all CRA charity applications will need to be done online using the CRA CHAMP system.  

CRA has recently updated their guidance RC191 - Qualified Donee Becoming a Prescribed University Outside Canada (CRA).  The changes are minor.  They have updated the Charities and Giving links to the new Canada.ca website.  For a more in-depth discussion of a foreign university applying to be a Canadian foreign prescribed university our article "Foreign Universities Applying for Prescribed University Status in Canada 2018" may be of assistance.