Blumbergs Professional Corporation is involved with many charity applications each year. In this series, CRA Charity Application Graveyard, we aim to provide groups considering charitable status applications with insights into common issues the CRA encounters, based on our analysis of access to information documents, CRA letters, and the CRA’s Charities and Giving website. These reasons given in the Charity Application Graveyard are not presented in order of importance.
CRA identifies the following issue:
Promotion of culture
The meaning of culture is vague, and promoting culture can mean different things to different people. It can mean advancing the interests of a particular community. It can also mean promoting the institutions and practices of a historically identifiable group. Promoting culture lacks the necessary element of public benefit to qualify as charitable because it does not benefit the community as a whole or a sufficient section of it.
We do consider enhancing the public’s knowledge and appreciation of the art, history, and language of a particular culture to be charitable under the advancement of education. However, the focus must be clear. There is an important difference between educating about a particular culture, which is charitable, and promoting a particular culture, which is not.
CRA also has a guidance Charitable work and ethnocultural groups – Information on registering as a charity that could provide some helpful context relating to this topic. It also discusses multiculturalism in addition to culture.
4. Definition of ethnocultural
An ethnocultural group shares characteristics that are unique to, and recognized by, the group. Characteristics may include:
- cultural traditions
- ancestry
- language
- national identity
- country of origin
- physical traits
A group may have its origins in many countries or link its distinct identity to a geographic region within a country.
Religion may also be a defining characteristic because, in some cases, it may be completely tied into a group’s racial or cultural identity.
Activities that seek to eliminate disadvantages experienced by members of ethnocultural groups and to end discrimination may be charitable.
The Charities Directorate may register an ethnocultural organization as a charity when all the work the organization does has a public benefit and the work fits into one of the charitable categories described in this guide.
Aboriginal peoples have a unique legal and constitutional position in Canada. The CRA‘s policy CPS-012, Benefits to Aboriginal peoples of Canada, concerns charitable status for organizations that serve Aboriginal peoples in Canada.
…
Groups that promote multiculturalism
Multiculturalism is a vague term that has not been clearly defined by the courts. The promotion of multiculturalism does not fall into any of the four charitable categories.
An organization applying for charitable status will be turned down if promoting multiculturalism is one of its purposes.
An organization applying for charitable status will also be turned down if promoting or preserving a culture is one of the organization’s purposes. This is because promoting or preserving a culture is seen to benefit only some members of the community, not all. However, a charity can do a variety of activities that may contribute to a more multicultural community, such as:
- promoting racial, ethnic, or gender equality
- fostering positive relations between communities
- increasing public knowledge and appreciation of an ethnic group’s art, culture, language, and traditions
Cultures and multiculturalism
- for a purpose, do not include the promotion of multiculturalism
- also, do not include the promotion or preserving of a culture as a purpose
Social or cultural events
A group’s social events or cultural celebrations do not qualify as charitable purposes. For example, banquets, picnics, and Canada Day celebrations are not considered charitable purposes.
Nonetheless, a charity can carry on social activities to help achieve its charitable purposes and to help raise funds.
CRA also has another guidance Applicants assisting ethnocultural communities that could be helpful.
Not everything is charitable, and sometimes, for some groups, depending on what they want to accomplish and what their sources of revenue are, it may not even be desirable to be a registered charity. One thing is clear – CRA spends a lot of time and resources reviewing charity applications, and unless your application meets all of the charity law requirements under the Income Tax Act and common law, they will not be able to register your organization as a charity.
If you require assistance with your charity application, you may be able to retain our law firm, and you can contact us here. It is best to contact us before establishing the entity and making an application to CRA, as this will minimize costs, changes and delays.