Considerations On Winding Up A Charity

We are asked from time to time to assist with the dissolution of an existing registered charity.  However, often we suggest to our clients that it might be better for them to either amalgamate the existing charity into another charity or keep it in existence but inactive.

There are various reasons why charities wish to dissolve.  Sometimes the problem that they were established to address has been solved.  Sometimes there is no leadership left to govern or manage the charity.  Other times the work once done by the charity has been taken over by another charity.

When a charity is formally dissolved as a matter of corporate law or trust law, generally speaking, it must confirm that it has no liabilities and must then distribute its remaining assets to other qualified donees.  It then notifies the Canada Revenue Agency ("CRA") and files a final tax return confirming it has dealt with its remaining assets as required.  Most liabilities end with dissolution.  Bequests