Tax lawyer for Charities, Small Business, and Individuals in Toronto, Canada

Our last newsletter dealt with the requirements of the various provinces and territories of corporations carrying on operations in jurisdictions other than where they were originally incorporated. In addition to corporate requirements (of both the incorporating and operating jurisdictions), some provinces have additional registration requirements for charities carrying on fund raising activities. Complicating matters further, different provinces have different definitions for term 'fundraising'. In some cases, simply operating a website that allows donors from a province to donate may require a charity to register with the governmental authorities. Thus, individual Charities must carefully scrutinize the requirements of each province and apply them to their specific situation.

As always, if you have any questions or comments about the Aptlaw.com newsletter, or any other aspect of charity law, please contact me.

British Columbia , Newfoundland , Nova Scotia , New Brunswick , the Yukon , the Northwest Territories and Nunavut do not require registration for carrying on charitable fundraising in those jurisdictions.

a) The charity makes use of a "fundraising business" (defined as one that is paid for making or managing solicitations made on behalf of the charitable organization).

b) A charity intends to raise more than $25,000 in gross contributions in its financial year from solicitations to individuals in Alberta , or

c) Regardless of intention, a charity raises more than $25,000 in Alberta (in which case the charity has 45 days after reaching the threshold amount to register).

Requirements for Charitable Organizations Who Solicit Donations for a Charitable Purpose

Generally, charitable organizations may not solicit for charitable purposes in Manitoba without authorization (usually freely given) from the Manitoba Consumer and Corporate Affairs, Consumers' Bureau. Certain exemptions apply for religious organizations collecting for its own purposes, organizations collecting solely from its members and organizations authorized under The Manitoba Lotteries Corporation Act , if you think any of these apply to you please contact me. To register, an Application for Authorization to Solicit Funds form must be filed with the above government department.

The Office of the Public Guardian and Trustee of Ontario ("PGT") regulates (among other groups) charities that receive or hold property for charitable purposes. Such charities must report to the PGT within one month after the execution of the written instrument transferring or vesting property in the charity (regardless of when the charity actually receives it). There is no prescribed form for this notice, hence a charity should simply write a letter to the PGT describing the nature of the property, and enclosing the following documents:

A copy of the letters patent (and supplementary letters patent as granted from time to time) or a charity's constitution
Relevant deeds of trust and endowment fund agreements entered into by a charity from time to time;
Street and mailing addresses of the charity;
Names and street and mailing addresses of its directors and officers;
All legal and popular or common names or acronyms by which the charity is known or identified; and
Canada Revenue Agency Registration and BN numbers.

The PEI Charities Act does not apply to registered charities nor to churches fundraising from its members for religious purposes or other connected objects. (As we will explore more fully in our next series, the law defines some groups as charities regardless of their registration as such with the Canada Revenue Agency). While this probably excludes a vast majority of groups, any other charities that directly or indirectly solicit or make any appeal to the public for donations or attempt to make any collection for any charity or charitable fund in the province must register with the government. To register, a charity files an Application for Registration of a Charity form with the Consumer, Corporate and Insurance Division, Office of the Attorney General.

Regardless of their registration with the CRA, Charities that solicit or receive any donations or income from residents of Quebec must seek separate charitable status in Quebec pursuant to the Taxation Act ( Quebec ). Upon submission of the Quebec charitable registration application, the Quebec Ministry of Revenue will assign the applicant charity the same BN/Registration Number as is assigned by CRA. This will enable the charity to issue charitable donation receipts for the purposes of the Province of Quebec . Charitable fundraising registration is effected by filing the following documents with the Government of Quebec, Minister of Revenue:

Application for Registration as a Charity or a Canadian Amateur Athletic Association;
Certified copy of the incorporating documents;
Statement of Activities;
Copy of Statement of Assets and Liabilities;
List of names, addresses and positions or titles for all directors and officers; and
Copy of the CRA's letter granting charitable registration.

There is no legislation requiring charitable fundraising registration by charitable organizations. However, the Charitable Fundraising Businesses Act ( Saskatchewan ), recently enacted by the province and effective as of January 1, 2003 regulates charitable fundraising businesses. This act should be reviewed by charities intending to solicit donations in Saskatchewan , given the compliance requirements applicable to fundraising activities carried on within the province.