Charity number with the Canada Revenue Agency
All conferences and councils should have a charity number.
The main advantages of being a registered charity are:
- Registration allows a charity to issue official donation receipts for gifts it receives. These receipts can be used to reduce the income tax payable of an individual donor or the taxable income of a corporate donor.
- Once registered, a charity is exempt from paying income tax under Part I of the Income Tax Act.
- Registered charities are eligible to receive gifts from other registered charities, such as foundations.
- Registration provides increased credibility in the community, since registered charities must follow certain rules and guidelines in order to maintain their registration.
- Many goods and services provided by registered charities are exempt from goods and services tax/harmonized sales tax (GST/HST). Also, in many situations, registered charities can claim a partial rebate for the GST/HST they pay.
The main obligations of a registered charity are to:
- devote its resources (funds, personnel, and property) to its charitable purposes and activities;
- file its annual Form T3010, Registered Charity Information Return, within six months of its fiscal period-end;
- meet its annual spending requirement;
- keep adequate books and records in Canada, and make them available for review by the Canada Revenue Agency on request;
- make sure that official donation receipts are complete and accurate when issued;
- control and direct the use of all its resources (funds, personnel, and property); and
- maintain its status as a legal entity.
Also, a registered charity should inform the Charities Directorate and the SSVP National Council of any changes to the charity's mode of operation or legal structure. Examples include a change in address, directors, legal or operating name, purposes, activities, or governing documents.
If a registered charity does not meet its obligations, it may be subject to a penalty and may have its registered status revoked.
For more information please visit the CRA website : http://www.cra-arc.gc.ca/chrts-gvng/menu-eng.html
To apply for a charity number, the following documents must be completed and send to the SSVP National Office:
- Form T2050 : http://www.cra-arc.gc.ca/E/pbg/tf/t2050/README.html
- Statement of Activities
- Financial Statement (Form 9.3E1 or 9.3E2)