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CRA releases 4th Quarterly Update from the Charities Directorate

The CRA has released its 4th Quarterly Update from the Charities Directorate with lots of information on the recent activities of the Charities Directorate.

Here is the full text of the update:

https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/whats-new.html

 

Quarterly updates from the Charities Directorate

    • Welcome back to our fourth edition of Quarterly updates from the Charities Directorate!

Spring has arrived in many parts of the country, bringing a renewed sense of energy for the months ahead. With the start of a new fiscal year in the Government of Canada, we’d like to take a moment to reflect on the achievements, priorities, and outcomes of last year. These milestones have paved the way for a productive year ahead, and we’re excited to see all that we can accomplish.

We also want to share information on the charitable registration process. Important work continues to improve the process, and we look forward to keeping you informed on the latest developments.

Based on feedback we have received, many appreciate hearing about our interactions with the sector. In this edition, we have another list of recent engagements to share with you.

Finally, we’re excited to announce a couple of very popular webinars planned for the coming months. Make sure you read to the end for a sneak peek at the topics!

Year in review

During the 2024-25 fiscal year, the Charities Directorate worked hard to support the charitable sector by enhancing transparency, communication, and outreach.

The year in numbers

Improving transparency and communication was a key priority last fiscal year. Here’s a snapshot of our efforts:

    • Sent 40 electronic mailing list (EML) messages to subscribers
    • Responded to 14,609 written enquiries and 62,597 telephone enquiries through our client service team
    • Published over 200 updates (new or revised web pages) to the Charities and giving website
    • Delivered five webinars on various topics to a total of 3,007 participants

Educating the charitable sector

As part of our commitment to providing charities with the tools and resources they need to meet their obligations and continue their important work, we developed and published various educational materials on our website.

Here’s a quick highlight reel from the past year:

Strengthening transparency and engagement

We remain committed to sharing more information with the public and the charitable sector about the regulation of charities. Guided by this pledge to openness and transparency, we:

Legislative changes

The 2024-25 fiscal year brought its share of challenges, such as the four-week postal service disruption that started in November 2024, which impacted the charitable sector.

To mitigate these impacts, the Department of Finance announced the federal government’s intention to amend the Income Tax Act to extend the deadline for making charitable donations eligible for tax support in the 2024 tax year, until February 28, 2025. The Department of Finance released draft legislation in support of this proposed change. For more information, visit Draft legislative proposals and explanatory notes related to the Income Tax Act (Charitable donations).

To clarify the situation, we published the Extension of the deadline for making 2024 charitable donations. This resource offers detailed information for both taxpayers who make charitable donations and charities or other qualified donees that issue donation receipts.

Engaging with the charitable sector

The winter months didn’t stop us from getting out and connecting with the sector!

Carleton University T3010 Data Research Group Meeting (January 14, 2025)

We continued to engage with the T3010 Research Group, hosted by Carleton University. In a recent meeting, we shared updates on the T3010, Registered Charity Information Return, and gained valuable insights from researchers on how they use T3010 data in their work.

AFP Quebec Presentation (January 22, 2025)
We delivered a virtual presentation to the Association of Fundraising Professionals (AFP) Quebec, to provide a detailed overview of the requirements for maintaining charitable registration. We also participated in a question-and-answer session.

International Regulators Meeting (January 29, 2025)

We attended a virtual international regulators meeting, where charity regulators from eight countries gathered to discuss topics of common interest and concern. The remote discussion provided a platform to exchange perspectives on two main topics:

    • the decolonization movement among international charities
    • ex-gratia payments related to the return of charitable bequests

This was an excellent opportunity to learn about issues faced by other jurisdictions and to share updates from the Directorate.

Imagine Canada – Playing by the Rules: Election Guidelines for Charities and Nonprofits Webinar (February 5, 2025)
We participated in a webinar hosted by Imagine Canada, “Playing by the Rules: Election Guidelines for Charities and Nonprofits.” The session offered insights into rules governing political activities for charities. We were joined by experts from Elections Canada and the Office of the Commissioner of Lobbying to discuss key regulations and best practices for charities and nonprofits during election periods. This discussion emphasized the rules prohibiting a charity from supporting or opposing political parties or candidates in Canada.

National Archival Appraisal Board Presentations (February 5 and February 20, 2025)

At the request of the National Archival Appraisal Board, we delivered virtual presentations on Gifts of Certified Cultural Property to archivists and researchers. These sessions were held in Montreal (French session, February 5) and Toronto (English session, February 20). They clarified the CRA’s role in tax credits and deductions for such gifts, resulting in valuable discussions and positive feedback.

Law and Religion Class Discussion at Western Law (February 12, 2025)

Sharmila Khare, Director General of the Charities Directorate, engaged in a class discussion at Western Law, sharing insights on the CRA’s role in regulating the sector. Topics of discussion included how we interact with religious communities and the challenges that often emerge in this context.

Canadian Muslim Public Affairs Council (CMPAC) Exclusive Roundtable on Charity Sector Challenges (February 24-25, 2025)

We were invited to participate in the 2025 Canadian Muslim Public Affairs Council (CMPAC) Conference and roundtable, “Strengthening Solidarity Across the Charity Sector.” This event brought together sector leaders, academics, and government stakeholders to address systemic challenges facing Canada’s charitable and nonprofit sectors, with a particular focus on Muslim-led charities. Discussions covered various themes such as systemic bias, regulatory hurdles, and financial implications.

Presentation for the Hindu Federation (March 5, 2025)

We delivered a presentation to the Hindu Federation, an amalgamation of temples of varied Hindu denominations and other Hindu organizations in Canada, providing information and clarity on maintaining charitable registration. We also participated in a question-and-answer session.

Knowledge Hub 2025 (April 24, 2025)

We presented at Knowledge Hub 2025, an event hosted by the Ukrainian Canadian Professional & Business Association of Toronto. Sharmila Khare, Director General of the Charities Directorate, provided updates from the Charities Directorate and highlighted key compliance priorities. It was a valuable opportunity to connect with sector volunteers and professionals and support ongoing dialogue around regulatory and operational topics.

Canadian Bar Association Charity Law Conference (April 25, 2025)

We attended the Canadian Bar Association Charity Law Conference and had the opportunity to share updates, including upcoming initiatives and areas of focus for the Directorate. We also discussed how the sector can support a shared responsibility in maintaining compliance. It was a great chance to connect with legal professionals and share insights on current and emerging issues.

Understanding the registration process

In the Charities Directorate, the Assessment, Determinations, and Monitoring (ADM) Division is responsible for everything related to registration. This includes:

    • determining whether applicants meet the common law and legislative requirements for registration as a:
      • registered charity
      • registered Canadian amateur athletic association
      • registered national arts service organization
      • registered journalism organization
      • other qualified donee
    • providing technical and legislative advice to:
      • registered organizations
      • applicants
      • other government departments
      • senior management
      • legal firms
      • provincial and foreign governments

Before you apply

We strongly encourage applicants to review the Charities and giving website for guidance. We continuously update our resources to help you:

    • determine whether you should apply for registration
    • understand factors that could prevent an organization from being registered
    • understand the consequences of not meeting the obligations for registration

We strive to be as transparent as possible about the requirements for registration.

How to apply

We recommend you apply to become a registered charity using the online form. To do so, sign in to your CRA account, where you will be able to access My Business Account (MyBA). If this is your first time using our online services, go to Access our online services for charities for more information.

If you’re an authorized representative, you can apply for your client organization through Represent a Client.

As always, our client service team is available to help with any questions on accessing digital services, completing the application, or the registration process in general.

After you apply

Once your application is submitted, it goes through a series of steps towards a final decision:

    • Initial review: We check if your application is complete. If any information is missing, we’ll either call or send you a letter requesting the necessary details.
    • Detailed assessment: Completed applications are assigned to an analyst for a detailed review. During our review, we check that the applicant meets all of the requirements for charitable registration. If we require more information or clarification to make a decision, we’ll reach out to your organization.

Collaboration for success

The registration process is a collaborative effort. We depend on applicants and their accountants and/or lawyers to provide a complete application for registration. We may consult internally with other divisions to ensure that:

    • policies are being applied properly
    • decisions are consistent
    • potential areas of non-compliance, such as ineligible individuals, are addressed

A focus on education

We know that applicants aim to serve their communities and that the majority of the sector is compliant with regulations. That’s why we pursue an education-first approach, when communicating with the charitable sector. You may have noticed a change in the tone and content of our letters. While applicants are required to provide all the information requested, our goal is to help you understand your obligations under the Income Tax Act.

In case you missed it

As the CRA moves towards a more accessible and digital-by-default environment, in line with the Government of Canada Digital Standards, your charity should take advantage of the digital tools available.

We continuously update our online services to make it easier for charities to self-serve, while ensuring services are secure, efficient, and responsive to the needs of Canadians and the charitable sector.

Here are some of the most recent improvements:

    • Document verification service – This service allows you to verify your identity and get immediate access to your CRA account, eliminating the wait for a security code by mail. More than 1 million individuals have already used this service.
    • Simplified access to your CRA account – You can now access My Account, MyBA, and Represent a Client with a single sign-in.

With these improvements, more charities are choosing to file their T3010 annual information return online. We’re pleased to see this shift and continue to encourage all registered charities to file online using MyBA or Represent a Client. Unlike paper filing, this avoids delays, lost returns, and higher administrative costs.

Spoiler alert: stay tuned to see how we are making it easier than ever to file your T3010 return!

Webinars for charities and other qualified donees

Completed webinars

Over the past few months, we continued to develop and host webinars for charities. Here are some highlights:

Upcoming webinars

We have two webinars planned for the coming months:

    • Completing your T3010 online: A walkthrough for charities
    • Registering for your CRA Account: A step-by-step guide for charities

If you received this email, you are already subscribed and will be notified when registration opens. Space is limited, so make sure to sign up early to take advantage of these great learning opportunities!

You can also check out the Charities media gallery to view past webinars.

Spread the word

Have you been enjoying our quarterly updates? Did you learn something new? If so, we’d love for you to spread the word. Share this email with a colleague and encourage them to sign up for our electronic mailing list!

Published on: May 14, 2025