Finally, the “CRA Guidance Protection of the Environment and Charitable Registration” is available to the public. This 2014 version obtained through ATIP is the first non-redacted version of the guidance available to the public. Previously, only the footnotes were available publicly! There are over 1,200 environmental organizations in Canada that are registered charities and it is important that they understand CRA’s views about the law relating to charities in this important area.
Here is the summary:
An organization with purposes that protect the environment can be eligible for registration as a charity under the Income Tax Act, provided it meets all related legal and administrative requirements.
The courts have held that purposes that protect the environment may be considered to be components of the existing fourth category of charitable purposes, including preserving human health, providing public amenities, and upholding the law.
Purposes that protect the environment through:
• ecosystem preservation;
• pollution reduction;
• providing environmental public amenities (facilities and services); and,
• upholding environmental laws are, in general, charitable if they deliver the required public benefit.Activities can be charitable when they directly further a charitable purpose.
Examples of activities that may directly further purposes that protect the environment include:
• Activities that protect, conserve, or restore natural ecosystems, such as:
o ecological conservation activities;
o ecological restoration activities;
o biodiversity restoration and preservation activities;
o climate change mitigation activities; and
o providing related expertise and equipment for the above activities.• Activities that stop, reduce, or remedy the effects of pollution, such as:
o recycling activities;
o environmental power generation activities;
o clean-up activities (e.g., garbage pick-up); and
o environmental transportation activities.• Activities that provide publicly available facilities or services relating to the environment.
• Activities that uphold the administration and enforcement of environmental laws, such as:
o acquiring, providing, or maintaining physical facilities or systems to ensure compliance with environmental laws;
o assisting in the administration and enforcement of environmental laws by the authorities;
o providing legal services to address breaches of environmental laws;
o informing or advising the public about the requirements of environmental laws;
o mediating between parties to resolve disputes involving the application of environmental laws;
o certain public information activities/programs; and
o detecting and reporting certain breaches of environmental laws to the relevant authorities.However, not everything that is done with the intention of protecting the environment is charitable under the law. To be charitable, every protection of the environment purpose must meet the public benefit test by delivering a charitable benefit to the public Organizations with other charitable purposes, such as the relief of poverty, the advancement of education, or the advancement of religion, may also conduct activities that protect the environment. To be charitable, these activities must directly further the organization’s stated purpose(s) and meet all associated legal requirements. How this might be achieved is explained in Section C – Other charitable purposes that may be furthered environmental activities.
There have been changes in the law since this draft guidance was prepared – most notably the changes relating to political activities in 2018/2019.