Becoming a Registered Charity
RC10. How can a registered charity carry out its charitable purpose?
A registered charity can make grants or gifts to other qualified donees or it can carry out its own activities or purposes as set out in its incorporation documents.
D7. When determining the fair market value of an item should a registered charity include the GST/HST?
The fair market value of an item should not include taxes paid on purchasing the item. Taxes are a cost incurred by the purchaser and are payable to the Crown. The seller merely acts as an agent of the Crown in collecting the taxes
F22. How do we allocate expenses of an activity that include fundraising?
A charity must satisfy one of two tests before determining how (if any) of the expenditures relating to an activity may be considered to have both fundraising and charitable components. These tests are:
F21. Does the CRA compare fundraising expenses to the amount we raised through fundraising?
Yes. The ratio of fundraising expenses to fundraising revenues is one of the factors that the Canada Revenue Agency (CRA) reviews.
This CRA grid guides them in determining when additional information on fundraising costs is needed.
F20. Why does a charity have to make a distinction between its fundraising activities and its charitable program activities?
F19. Are some fundraising activities prohibited?
A fundraising activity is prohibited when it
F18. What will the CRA do if an audit raises concerns about a charity’s fundraising activities?