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A registered charity is a type of nonprofit organization that is regulated by the government. In order to be registered, a charity must meet certain requirements.
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What is a Registered Charity?
A registered charity is a type of non-profit organization that is registered with the CRA (Canada Revenue Agency). To be registered, charities must comply with the requirements set out in the Income Tax Act and meet the public benefit test.Charities can provide a wide range of services and programs, but they must have a charitable purpose that falls within one or more of the following categories: relief of poverty, advancement of education, advancement of religion, or other purposes that benefit the community in a way the law recognizes as charitable.
What are the benefits of being a Registered Charity?
If you are a Registered Charity, you will have certain privileges and tax exemptions that come along with that status. For example, you will be able to issue official donation receipts, which your donors can use for income tax purposes. In addition, your Registered Charity status will exempt you from paying GST/HST on most of your purchases and allow you to apply for other government grants and subsidies.
How to become a Registered Charity
Becoming a registered charity has many benefits, the most important of which is that it provides donors with the knowledge that their donation is going to a good cause. It also allows the charity to apply for government funding and makes them eligible for certain tax benefits. The process of becoming a registered charity can be complicated, but we’ll walk you through it.
What are the requirements?
To become a registered charity, an organization must apply to the CRA and meet certain common law requirements. An organization must:
-have a constitution, charter, trustees, or similar governing document;
-have objectives or purposes that are exclusively charitable at law;
-devote its resources to charitable activities; and
-not be a political party or terrorist group, or exist to promote hatred.
In addition, an organization must:
-be created or resident in Canada;
-be governed by Canadians; and
-have Activities conducted in Canada.
How to apply
All organizations that want to be registered charities must apply to the CRA. To do this, they must complete the required application forms and send them, along with the application fee and any other required supporting documents, to the address listed on the forms.
The application forms, guides, and other supporting documents are available on the Charities Listings section of the CRA website.
What happens after you become a Registered Charity?
After you become a Registered Charity, you will need to fulfill certain requirements in order to maintain your status. You will need to file an annual information return, keep proper financial records, and issue official donation receipts, among other things. In this section, we will go over what you need to do in order to maintain your status as a Registered Charity.
Maintaining your status
After your charity is registered, there are certain ongoing requirements that you must meet to maintain your status. These include:
-Filing an annual information return
-Maintaining accurate books and records
-Keeping your contact information up to date
-Reporting changes to your structure or activities
-Notifying the CRA of changes to your directors or trustees
If your charity does not meet these ongoing requirements, it may be suspended or revoked.
What if you want to make changes to your charity?
If you want to make changes to your Registered Charity, you will need to follow the process outlined by the Canada Revenue Agency (CRA). Depending on the type of change you want to make, the process can vary. For example, if you want to change your charity’s name, address, or contact information, you will need to complete a Change Request Form and submit it to the CRA. However, if you want to make more significant changes, such as changing your charity’s purpose or activities, you may need to submit an application for re-registration. You can find more information on the CRA website.
What are the consequences of not being a Registered Charity?
If you are not a Registered Charity, there are a few consequences that you may face. Firstly, you will not be able to receive any tax-deductible donations. Secondly, you will not be able to apply for government grants. Thirdly, you may not be able to get some types of insurance. Lastly, you will not be held to the same accountability standards as Registered Charities.
Why bother registering?
There are a number of reasons why you might want to register your charity. The most important one is likely to be that, without registration, your charity cannot access a number of benefits, including:
– Tax reliefs: Only registered charities can claim Gift Aid, which allows them to increase the value of donations made by UK taxpayers.
– Trust status: Only registered charities can apply to become a registered charity in Scotland or Northern Ireland. This gives them certain legal protections and makes it easier to raise money from grant-making trusts and foundations.
– Eligibility for government contracts: In order to bid for many government contracts, your organisation must be a registered charity.
– Community Amateur Sports Club status: This gives certain tax breaks and makes it easier to apply for grants. It is only available to organisations that are registered charities.
