FB6. Our church, which is a registered charity, would like to start a shop to sell prayer books and religious objects in our church hall. Merchandise would be sold at cost, by staff hired to run the shop.

FB6. Our church, which is a registered charity, would like to start a shop to sell prayer books and religious objects in our church hall. Merchandise would be sold at cost, by staff hired to run the shop. Is it permissible for our church to carry on this type of activity on church premises?

English

FB5. Can our church carry on a business to generate more resources to carry out our charitable work?

FB5. Can our church carry on a business to generate more resources to carry out our charitable work?


Short Answer

Under some circumstances, the Canada Revenue Agency allows registered charities to carry on a business.

Long Answer

The CRA distinguishes between “related businesses” and “unrelated businesses”.

English

FB4. What if some volunteers take a side trip for a holiday while they are on a mission in a foreign country?

FB4. What if some volunteers take a side trip for a holiday while they are on a mission in a foreign country?

English

FB3. I want to give a cash donation to our church mission so that my daughter can participate in an overseas mission. Will I be able to get a tax receipt from the church?

FB3. I want to give a cash donation to our church mission so that my daughter can participate in an overseas mission. Will I be able to get a tax receipt from the church?

English

FB2. Are there rules about who qualifies as “clergy”?

FB2. Are there rules about who qualifies as “clergy”?


Yes. There are two tests that a member of the clergy must meet; the “status” test and the “function” test. The clergy person must first meet the status test. Then, the function test applies.

According to the status test, a person claiming the clergy residence deduction must be one of:

English

FB1. Our church would like to buy a parish house for our minister to use as a residence for him and his family. Can we do that?

FB1. Our church would like to buy a parish house for our minister to use as a residence for him and his family. Can we do that?


Short Answer

Yes, a church which is a registered charity may buy a parish house for the use of a clergy person.

English

S16. Our charity was offered a one week stay at a holiday condo as an auction item. Can we issue a charitable receipt to the donor for the FMV of the gift?

S16. Our charity was offered a one week stay at a holiday condo as an auction item. Can we issue a charitable receipt to the donor for the FMV of the gift?


Short answer

No. One of the criteria for a gift is that there be a voluntary transfer of property. In this situation, no property is being transferred—instead, use of the condo is being provided. Since no property is transferred, no “gift” is made. A tax receipt for the value of the loan of condo cannot be issued.

English
FAQ Section: 

S16. Our charity was offered a one week stay at a holiday condo as an auction item. Can we issue a charitable receipt to the donor for the FMV of the gift?

S16. Our charity was offered a one week stay at a holiday condo as an auction item. Can we issue a charitable receipt to the donor for the FMV of the gift?


Short answer

No. One of the criteria for a gift is that there be a voluntary transfer of property. In this situation, no property is being transferred—instead, use of the condo is being provided. Since no property is transferred, no “gift” is made. A tax receipt for the value of the loan of condo cannot be issued. p>

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FAQ Section: 

S15. What are loanbacks and how do they work?

S15. What are loanbacks and how do they work?


In the context of charitable giving and taxation, a loanback occurs when a donor makes a gift to a qualified donee and within 60 months of making the gift, at least one of the following two situations occur. These situations have the effect of reducing the fair market value of the gift for income tax purposes.


Situation One:

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FAQ Section: 

RC11. Do non-profit organizations and charities have to file income tax returns to Revenue Canada?

RC11. Do non-profit organizations and charities have to file income tax returns to Revenue Canada?

Yes. Even though most non-profit organizations are exempt from income tax, the organization must still complete an income tax return each year to report to Revenue Canada. The form that is completed will differ according to whether the organization is a registered charity or whether it is a non-profit that is not also a registered charity.

English

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