RC18. What are the consequences of not meeting the obligations of a registered charity?

RC18. What are the consequences of not meeting the obligations of a registered charity?


Short Answer

If a registered charity does not meet its obligations, it may be subject to a penalty or revocation (that is, lose its charitable status).

Long Answer

The Charities Directorate of the CRA uses a scale to determine whether a charity is meeting its obligations. In increasing severity, the Charities Directorate may use the following tools:

  • education (explaining the rules to a charity)
  • compliance agreements (a formal document signed by the charity and the CRA identifying the problem, the solution, and the consequences if the charity does not solve the problem)
  • sanctions
    • financial penalty
    • suspension of the charity’s right to issue official donation receipts (for example, for one year)
  • revocation
More…

Study the
Guidelines for applying the new sanctions