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 issues:
Advancement of religion – Request for more information
To be registered under the Act, a religious organization must advance religion in the charitable sense. According to case law,(including Keren Kayerneth Le Jisroel v IRC (1931), 10 ATC 62 (KB) and Arnselern v Syndicat Northcrest, (2004] 2 SCR 551) advancing religion involves promoting all of these three key elements:
- a doctrine that there is a god(s), or supreme being(s) (a theistic doctrine)
- a doctrine that adherents must worship or revere that god or supreme being (a worship doctrine)
- a particular and comprehensive system of faith and worship
Not all activities conducted in the name of religion advance religion in the charitable sense. Activities that directly further an advancement of religion purpose:
- are clearly and materially connected to the religion’s teachings, doctrines, or observances
- constitute a targeted attempt to manifest, promote, sustain, or increase belief in the religion to or by adherents or the public
To confirm that the applicant is advancing religion in the charitable sense, we need all the following information:
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the applicant’s statement or articles of faith
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the requirements for membership
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the number of members at the place of worship and their relationship, if any, by blood, marriage, or adoption
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the credentials of the ministers at the place of worship
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the frequency of services or meetings at the place of worship and the location they are held at
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full details about the applicant’s administrative and financial relationship with its head office
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sample copies of periodicals and other materials from the applicant’s head office
If you want further ideas about CRA’s views on the charitable concept of “advancing religion”, the CRA, unfortunately, has not published its guidance on religion. However, we have obtained a number of draft versions of the CRA guidance that are helpful in understanding CRA’s position with respect to religion and advancing religion.
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.