Non-Profits that are not registered charities

May 04, 2011

CRA letter confirming that orgs that are unregistered charities do not qualify for the tax exemption

Here is a quite a helpful recent CRA letter confirming that orgs that are unregistered charities do not qualify for the tax exemption provided by paragraph 149(1)(l) as NPOs.  There are big differences between non-profits and registered charities. People are sometimes confused about how the Income Tax Act deals with organizations that are “charities” but they are not registered charities under the Income Tax Act.

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November 25, 2010

New T1044 Form - Non-Profit Organization (NPO) Information Return and Guide for Canadian non-profits

The CRA has revised its T4117 Income Tax Guide to the Non-Profit Organization (NPO) Information Return and the T1044 Form - Non-Profit Organization (NPO) Information Return.  If an organization is a registered charity under the Income Tax Act they would not have to complete the form.

 

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September 07, 2010

CRA letter on charity with separate non-profit selling in kind gifts at cost

Here is a CRA letter covering whether a charity that sets up a separate non-profit to sell in kind gifts at cost that the charity received and receipted would be considered to be organized and operated as a 149(1)(l) entityCRA_letter_on_charity_with_separate_non-profit_selling_in_kind_gifts_at_cost.pdf

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August 29, 2010

CRA letter on Canadian unincorporated associations and who should pay tax if no longer exempt

Here is a CRA letter on Canadian unincorporated associations and who should pay tax if no longer meeting requirements for tax exemption.

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June 16, 2010

CRA letter on whether provincial non-profit corporation necessarily tax exempt under ITA

In this letter CRA discusses “Will a corporation that is being incorporated under provincial non-profit legislation be tax-exempt under paragraph 149(1)(l) of the ITA?”  CRA notes “Paragraph 149(1)(l) of the Act (set out below), provides an exemption from tax for organizations that meet certain criteria.  The term “non-profit organization” does not have a specific meaning for federal income tax purposes; the Act does not define or use the term “non-profit organization”.  However, we understand that it is common to refer to organizations qualifying for this tax exemption as “non-profit organizations”.  Unfortunately, this can lead to confusion, as it means that an organization can be incorporated by a federal or provincial statute that uses the term “non-profit organization” (or something similar), but still not qualify for the tax exemption.  In other words, the method of creating the organization does not affect whether the organization qualifies for the tax exemption.  The tax exemption only applies if all the required conditions of paragraph 149(1)(l) are met, no matter how the organization is otherwise described or how it is set up.

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May 05, 2010

What happens when a Canadian non-profit no longer qualifies for non-profit status -see CRA letter

Here is a CRA letter that discusses “What happens when a 149(1)(l) entity no longer qualifies for the tax exemption?” and various related issues.  Here is the PDF CRA_letter_on_what_happens_when_a_149(1)(l)_entity_no_longer_qualifies_for_the_tax_exemption.pdf

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November 19, 2009

Can a Canadian non-profit earn a profit?  CRA’s views on the subject

Can a Canadian non-profit under 149(1)(l) earn a profit.  Does it matter if the profit is intentional and/or will be used to further the organization’s purposes?

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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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