Not-for-profit organizations – Should I apply for registration?
The decision to register a charity is an important one. Registration as a charity gives an organization special tax privileges. A registered charity does not have to pay income tax and can issue tax receipts to donors. Canadians donate generously every year to charities, and the Government of Canada wants to assure them that only qualifying organizations are registered and are given these privileges.
When making a decision about whether or not to register as a charity, an organization should be aware of the types of activities that would prevent it from being registered as a charity.
After a charity is registered, it will have to meet many obligations each year. A registered charity must also meet several other obligations with different levels of government (federal, provincial, territorial, and municipal), including maintaining its status as a legal entity.
If a registered charity does not meet its obligations, it could face serious consequences such as the loss of its charitable registration.
Finally, the Canada Revenue Agency offers a useful online tool to help you determine whether registration is right for you. Take this brief online survey now to find out more!
I’m ready to register!
Our knowledgeable Chartered Professional Accountants work with hundreds of not-for-profit and charitable organizations each year. Contact us and let us assist you with the registration process and to ensure you meet the required obligations to maintain your charitable status.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.