Share on LinkedInShare on LinkedIn

ARTICLE · 07 MARCH 2013

Are Canada’s Charity Groups Too Narrow?

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
Contributor
Borden Ladner Gervais LLP

Borden Ladner Gervais LLP

With over 750 lawyers, intellectual property agents and other professionals, BLG services...

View firm profile
Explore more from Borden Ladner Gervais LLP

In Canada, to become a registered Canadian charity, a corporation’s objects must fall under one of the following heads of charity...

CanadaCorporate/Commercial Law

​In Canada, to become a registered Canadian charity, a corporation's objects must fall under one of the following heads of charity:

  1. Relief of poverty;
  2. Advancement of education;
  3. Advancement of religion; or
  4. Certain other purposes that benefit the community in a way that courts have said is charitable (although this category sounds broad, the courts and the CRA have actually narrowly limited what will be approved under this category).

While lawyers have learned to phrase proposed objects carefully to fall within one of the four groups, and CRA staff are often very helpful and forthcoming with language suggestions, it is by no means easy for a charity to become registered in Canada.  There is no question that attention to detail, evidence of real and proposed actions, expenditures and funding, and careful planning are absolutely necessary when creating and running a charity, and should be easily demonstrable to the CRA, and we do not advocate for a loosening of the strict review of applications by the CRA, but we suggest that additional heads of charity should be considered by the CRA.

What are your thoughts?  Do narrow categories lend legitimacy? Or is Canada missing out on potentially wonderful and necessary charities that don't fit the traditional charity mold? 

http://www.winnipegfreepress.com/local/charity-for-new-age-192667501.html

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from