Charitable organizations play a vital role in Canadian society. They support and promote a wide range of causes and make a significant difference in the lives of many Canadians. If you are considering starting a charity, one of the essential steps is to apply for charitable status. In this blog post, we’ll walk you through the process of applying for charitable status in Canada.

Step 1: Determine Eligibility

To apply for charitable status, your organization must meet the following eligibility requirements:

  • It must be established and operated for exclusively charitable purposes.
  • Its resources must be devoted to charitable activities.
  • Its activities must be legal and must not promote violence, hate, or discrimination.
  • It must be based in Canada.

Step 2: Choose a Legal Structure

The legal structure of your organization will determine the type of application you need to file. The most common legal structures for charitable organizations in Canada are:

  • Charitable trusts
  • Unincorporated associations
  • Corporations without share capital

Step 3: Prepare Your Application

The application for charitable status is a complex process that involves several forms, documents, and supporting materials. The application package includes:

  • Form T2050, Application for Registration of a Charity under the Income Tax Act
  • A detailed description of your charitable activities
  • Financial statements for the last three years, if applicable
  • A list of your directors, trustees, and like officials
  • A copy of your governing documents
  • A copy of your financial statements, if available
  • A description of your fundraising activities
  • A detailed budget and business plan
  • A copy of any contracts or agreements related to your charitable activities
  • Other supporting materials as required

Step 4: Submit Your Application

You can submit your application package online using the Canada Revenue Agency’s My Business Account or by mail. You should receive a confirmation of receipt within two weeks of submitting your application. The CRA may request additional information or clarification during the review process.

Step 5: Wait for a Decision

The CRA will review your application package to ensure that your organization meets the eligibility requirements and that your activities align with the definition of a charity under Canadian law. The review process can take up to six months or longer. Once the review is complete, you will receive a decision letter from the CRA.

In conclusion, applying for charitable status in Canada can be a complex process, but it is an essential step if you want to start a charity. By following the steps outlined above and providing all the required information and documents, you can increase your chances of a successful application. If you need help with your application or have questions about the process, consider consulting with a lawyer or accountant with expertise in charitable law.