canada revenue agency charities directorate address

Regardless of the designation, the Income Tax Act requires that all registered charities operate in one of two ways: they can carry on their own charitable activities or they can make gifts to other “qualified donees”. Under the basic statutory framework, there are three types of registered charities: charitable organizations public foundations and private foundations. These tax privileges come with the obligation to follow the rules set out in the Income Tax Act. As my colleague mentioned, when we take business deductions into account the fiscal cost is closer to $3 billion. In 2014, the Department of Finance estimated that the fiscal cost for the federal government of tax incentives for charitable donations by individuals was more than $2.5 billion. There are approximately 86,000 registered charities in Canada and these entities enjoy significant tax privileges. Finally, while registered charities can carry on related business activities with the intention of making a profit, NPOs cannot have a profit purpose.Īs the charities directorate of the CRA is responsible for the regulation of registered charities, that's where I will focus my remarks.

In exchange for the privilege of issuing receipts for donations, registered charities are also required to file a publicly accessible annual information return. While both are tax-exempt, only registered charities can issue official donation receipts to donors. First, only charities are registered by the CRA. Let me start by saying that while the term “non-profit” is sometimes used to refer to both registered charities and non-profit organizations, there are some important differences.

It is the CRA’s responsibility to administer those rules. My name is Cathy Hawara and I am the Director General of the Charities Directorate within the Canada Revenue Agency.Īs my finance colleague explained, it is their role to write the rules that support the government’s tax policy agenda.

Canada revenue agency charities directorate address