CRA updates charitable purpose guidance, cites Supreme Court decision for Vancouver organization
In early May, the Canada Revenue Agency (CRA) released a new short guide on writing charitable purposes, after receiving feedback from many charities that writing a purpose “can feel complicated.”
The new guidance aligns with the Supreme Court of Canada’s decision on a Vancouver organization that had had its request to apply for charitable status rejected by the CRA because “it was not convinced that the organization was constituted exclusively for charitable purposes.”
A charity must state its purpose to show that it is operating for public benefit, or that it is making qualified disbursements to qualified and non-qualified donees. The new guidance also states that charitable purposes should specify exactly who benefits from its services.
The guidance is intended for new charities and those that are changing their registered purpose. It is the second version of the guidance since it was first published in 2013.
Your job. Your mission. Your news.
With your support, the sector you're building gets the journalism it deserves, and you get a tax receipt.
Author
