If you no longer want to be a Canadian registered charity you may wish to read CRA’s guidance the Consequences of terminating registration and Voluntary revocation process

Consequences of terminating registration

Before registering with the Canada Revenue Agency (CRA), an organization should be aware of the serious consequences that result if it later decides to terminate its registration. Once registration has been terminated, a revoked charity:
cannot issue official donation receipts for gifts it receives;
is no longer exempt from tax, unless it qualifies as a non-profit organization;
must transfer all remaining property to an eligible donee, or be subject to a revocation tax equivalent to the property’s full value; and
will have its name and the reason for its revocation posted in Part I of the Canada Gazette.

Voluntary revocation process

The charity sends a letter to the CRA (to the address or number below) asking that the charity’s registered status be revoked.

Address: Charities Directorate
Canada Revenue Agency
Ottawa ON K1A 0L5

Fax: 613-941-0186

The letter must be signed by one of the charity’s directors/trustees or by another person authorized to sign for the charity.

The CRA will acknowledge in writing that we have received the letter and confirm that the process of voluntary revocation has started.

About two weeks before the date of revocation, the CRA will send a Notice of Intention to Revoke a Charity’s Registration (T2051A),to the charity by registered mail. The notice will state the date on which the charity’s registration will be revoked. Also included will be Form T2046, Tax Return Where Registration of a Charity is Revoked.

The charity must complete and return Form T2046 to the CRA no later than one year after the date stated in the upper right corner of the T2051A notice.

If the CRA does not receive the completed Form T2046 three months before the due date, we will send the charity a Reminder to File Form T2046.

The charity’s registration is officially revoked when a notice about the revocation is published in the Canada Gazette.

Guide RC4424, Completing the Tax Return Where Registration of a Charity is Revoked
Guide T4063, Registering a Charity for Income Tax Purposes
CSP-R24, Revocation Tax

Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario.  He can be contacted at mark@blumbergs.ca or at 416-361-1982. To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit www.canadiancharitylaw.ca or www.globalphilanthropy.ca

This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.