
Registered Charity
A registered charity is a charitable organization, public foundation, or private foundation registered with the Canada Revenue Agency. A registered charity is issued a Registration Number once approved. It is exempt from paying income tax, and can issue tax receipts for donations it receives. It must be established and resident in Canada, operate for charitable purposes, and devote its resources to charitable activities [source].
There are also only four purposes the CRA accepts for charities:
- advancement of education;
- relief of poverty;
- advancement of religion;
- other purposes beneficial to the community (e.g. health, environment).
An organization will usually have to be legally established (i.e. incorporated) before it can apply for charitable status. This means that it is possible for some societies with appropriate charitable purposes and activities to later register for charitable status.
It can take 9-12 months to become a registered charity and is a major undertaking.
For more information on registering for charitable status, visit the CRA's Charities and Giving online resources, the CRA’s Charity Registration Guide and Charity Central.