Canada Revenue Agency
www.cra.gc.ca
Common menu bar links
Questions and answers about applying for registration
- Is there a fee to become registered?
- Does a charity need to be incorporated to become registered?
- How should an organization's purposes be stated in its governing document to be considered charitable?
- How long does the registration process take?
- What should an organization know about re-registration?
- What is a Registered Charity Information Return?
- Are registered charities subject to other federal and provincial/territorial requirements?
- Will the Canada Revenue Agency review draft purposes and activities to see if they qualify as charitable?
- What is the difference between charitable and charitable at law?
- How can I predict what my revenues and expenditures will be if I'm just starting out?
- How can I find out about the status of my application?
- What is the minimum number of directors, trustees, or other officials required to operate a registered charity?
- Where can I find out about the Goods and Services Tax/Harmonized Sales Tax (GST/HST) and payroll deduction obligations for charities?
- Can a registered charity lend us its registration number while we are waiting for our application to be reviewed?
1. Is there a fee to become registered?
No. However, if a charity is applying for re-registration after its registration has been revoked for non-filing, it must include a late-filing payment of $500 with the application form. Additionally, if a charity applies for incorporation, there is usually a fee charged by the incorporating authority.
2. Does a charity need to be incorporated to become registered?
No. Choosing to become incorporated is at the discretion of the charity. Many charities choose to incorporate as it affords limited liability protection to its members. Upon incorporation, a charity becomes a separate legal entity (a corporation) and the corporation (not the members) is generally liable for its debts and obligations.
3. How should an organization's purposes be stated in its governing document to be considered charitable?
To qualify for registration, an organization must be established and operated exclusively for charitable purposes (also referred to as objects). An organization that has a mix of charitable and non-charitable purposes cannot be registered. An organization's purposes are stated in its governing document (constitution, trust deed, or incorporation documents). The purposes must be stated in precise rather than broad or vague terms to identify a recognized charitable purpose as clearly as possible. For more information and a non-exhaustive list of acceptable purposes, see Model objects.
4. How long does the registration process take?
A properly completed (i.e., simple) application that does not contain any documents in draft format can usually be reviewed within two months. A simple application does not require contact with the organization since the stated purposes are clearly charitable and the activities have been described in enough detail for us to determine that they too are charitable.
If an application does not contain enough information for us to determine whether the organization qualifies for charitable registration, the wait time will increase to six months. In this instance, we will need more information from the organization and we will contact them by either letter or telephone.
To avoid delays, please make sure the application is complete and contains detailed information.
For more information, see Charities Directorate service standards.
5. What should an organization know about re-registration?
After revocation, any application for re-registration is treated the same way as a first-time application. Therefore, an organization must complete Form T2050, Application to Register a Charity Under the Income Tax Act, and provide all the necessary documentation, information, and signatures. Incorporated organizations must include a certificate of good standing. A charity that loses its registration because it did not file its annual information return must also include a late-filing payment of $500.
Before it can be re-registered, an organization must file missing information returns and financial statements (for the years before and after revocation).
Statute law, common law, and administrative policies concerning charities change over time. Therefore, an organization that qualified for registration several years ago may not qualify today.
For more information, see Re-registration.
6. What is a Registered Charity Information Return?
This is an annual return that registered charities are required to file within six months of their fiscal period end. Failure to do so can lead to the revocation of the charity's registration. The return is for information purposes as registered charities do not pay income tax. It records the charity's assets and liabilities and its revenue and expenditures. The information filled out on the return also determines whether or not the charity has met its annual spending requirement (disbursement quota). For more information, see Annual information return (T3010).
7. Are registered charities subject to other federal and provincial/territorial requirements?
Yes. Registered charities can be subject to other federal or provincial/territorial legislation that is associated with their operations, such as provincial or municipal standards for a nursing home, hospital, school board, or housing project. If a charity is incorporated, it must meet certain requirements under the incorporating statute, which may include other filing requirements. Additionally, there may be provincial, territorial, or municipal laws governing fundraising and other operations of the charity.
For more information, contact the federal, provincial, or territorial authority that issued the incorporation papers (if applicable), or refer to Provincial and territorial government contacts.
8. Will the Canada Revenue Agency review draft purposes and activities to see if they qualify as charitable?
We will review these on a one-time basis when they are submitted with a complete application form. All other documents and information requested on the application form must be provided. If it appears that the organization will not qualify for registration, we will explain our reasoning in writing.
We cannot make a decision regarding registration solely on the basis of draft or partial information.
9. What is the difference between charitable and charitable at law?
An organization providing a valuable contribution to society may be viewed as doing charitable work, but the term 'charitable' in Canadian society does not mean that the organization is 'charitable at law'. The term 'charitable at law' is derived from common law (court decisions) as well as from the Income Tax Act. The CRA can only register organizations whose purposes and activities are charitable at law. For more information, see Model objects.
10. How can I predict what my revenues and expenditures will be if I'm just starting out?
Establishing a proposed budget can prove to be difficult for many applicants. We recognize that not all the categories in the proposed budget section of the application form will apply to all organizations. We also understand that the amounts we are asking for will only be approximate amounts, since they are projections of what the organization expects to receive and spend in its next fiscal period. However, providing a proposed budget is necessary so that we have a general idea of how the organization intends to raise it funds and how the funds will be spent.
11. How can I find out about the status of my application?
If you are an authorized representative of the charity and have been identified as such on the application form, you can call our toll-free line at 1-800-267-2384 to inquire about the status of your application.
12. What is the minimum number of directors, trustees, or other officials required to operate a registered charity?
One. However, if a charity has only one director, trustee, or other official, it will automatically be designated as a private foundation upon registration. To be designated as a charitable organization or public foundation, more than half of the directors, trustees, or other officials must be at arm's length. If there is only one, this is not possible. For more information, see Types of registered charities (designations).
Charities wishing to incorporate should verify the minimum requirement for directors/trustees with their incorporating authority.
13. Where can I find out about the Goods and Services Tax/Harmonized Sales Tax (GST/HST) and payroll deduction obligations for charities?
Generally, charities that have employees have payroll deduction obligations. Some charities are required to register for GST/HST purposes, and there is a GST/HST rebate available to registered charities. For information on these topics, please refer to Payroll and GST/HST on the CRA Web site.
14. Can a registered charity lend us its registration number while we are waiting for our application to be reviewed?
Under no circumstance should a registered charity lend its registration number. A registered charity is responsible for all official tax receipts issued under its name and number and must account for the corresponding donations on its annual information return. Lending the registration number to another organization could lead to the revocation of the charity's registered status. In addition, a registered charity that issues incorrect or incomplete donation receipts or donation receipts that contain deliberately false information is liable to a penalty.
