{"id":7005,"date":"2022-09-26T11:03:50","date_gmt":"2022-09-26T15:03:50","guid":{"rendered":"https:\/\/www.sabbagh.ca\/articles\/uncategorized\/tax-law-registered-charities-get-your-status-back\/"},"modified":"2022-09-26T11:11:30","modified_gmt":"2022-09-26T15:11:30","slug":"tax-law-registered-charities-get-your-status-back","status":"publish","type":"post","link":"https:\/\/www.sabbagh.ca\/en\/articles\/tax-law\/tax-law-registered-charities-get-your-status-back\/","title":{"rendered":"Tax Law | Registered Charities: Get Your Status Back"},"content":{"rendered":"

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Administrative Law | Registered Charities: Reclaiming Your Status<\/h2>\n

Charity Law<\/h3>\n

You had registered charity status and lost it?
\nHere are the steps to follow to remedy this situation. <\/p>\n

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Registered charities are governed by the Charities Registration Act<\/a>, among other things.
Section 2(1) of the Act states that its purpose is to reflect Canada’s commitment to participate in the international effort to protect the integrity of the charitable registration system under the Income Tax Act.
This legislation assures Canadian taxpayers that the benefits of registration are available only to organizations that are operated exclusively for charitable purposes.<\/p>\n

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What is a registered charity?<\/h2>\n

In defining a registered charity, the Charities Registration Act refers to section 248(1)<\/a> of the Income Tax Act.<\/p>\n

This section states that registered charities are those that develop charitable works or establish a charitable foundation.<\/p>\n

The Act defines a registered charity as an organization that has applied to the Minister for registration in the prescribed form and is registered, at the relevant time, as a charitable organization, a private foundation or a public foundation:<\/p>\n

(a) a charitable organization, private foundation or public foundation, as defined in subsection 149.1(1), that is resident and incorporated or established in Canada
(b) a branch, section, parish, congregation or other division of a charitable organization, private foundation or public foundation, as defined in subsection 149.1(1), that is resident, incorporated or established in Canada and that receives gifts in its own name<\/p>\n

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The Act further defines charitable organization and charitable foundation in section 149.1(1) by setting out a number of relatively specific criteria.<\/p>\n

We can summarize as follows:<\/strong><\/p>\n

Charitable organization:<\/strong> a charitable organization at any time means an organization, whether incorporated or unincorporated, that is operated and constituted exclusively for charitable purposes and that is carried on by the organization or by eligible contributors. In addition, all resources must be devoted to charitable activities from which no part of the income is payable to any of its owners, members, shareholders etc.<\/p>\n

In addition, it should be mentioned that more than 50% of the directors, shareholder members, etc. may not be at arm’s length with each other or with a person responsible for the work that the organization promotes. The ratio legis underlying these provisions is that there should be absolutely no doubt about the independence and disinterestedness of the heads of registered charities.<\/p>\n

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Charitable Foundation<\/h2>\n

charitable foundation: means a corporation or trust established and operated exclusively for charitable purposes, no income from which is payable to or otherwise available for the personal benefit of any owner, member, shareholder, trustee or settlor of the trust or corporation, and which is not a charitable organization<\/p>\n

But what is charitable?<\/strong><\/p>\n

The Canada Revenue Agency states that the organization’s purposes must fall into one or more of the following categories:<\/p>\n