Charities Outreach

The Government of Canada recognizes the value of charitable giving and the important contribution that Canada’s

more than 83,000 registered charities make towards improving quality of life. The government reaffirmed its support

and recognition of the charitable sector by providing funding to non-profit organizations and registered charities to

develop and deliver innovative compliance-related education and training to charities.

The overall objective of the program is to increase charitable sector compliance with relevant parts of the Income

Tax Act. The main objectives of the program are to:

fashion; and

and training solutions.

Four project areas have been identified for contribution funding consideration.Requirements and obligations of charitable registration – Every year, approximately 4,000 charitable

organizations apply for registered status. Many of these organizations are not fully aware of the requirements and

obligations associated with becoming a registered charity and are intimidated by the requirements. The CRA would

like to reduce the number of revocations and potentially also the volume of applications for organizations that will

not be sustained. Therefore, the CRA will consider funding projects that are designed to educate organizations

before they seek registration about their requirements and obligations under the Income Tax Act and the alternatives

to registration, such as working with groups that are already registered.Gifts to non-qualified donees – Registered charities may use their resources in one of two ways: 1) in support of

their own charitable programs or; 2) by gifts to qualified donees. Many registered charities are not aware of the

restrictions surrounding "qualified donees." Projects designed to educate registered charities about their obligations

regarding gifting to qualified donees will be considered for funding.

Safeguards against terrorism – Registration under the Income Tax Act gives charities significant tax advantages

that are of crucial importance to their funding and functioning. Experience around the world shows that charities —

including, but not exclusively, those that transfer resources internationally for relief and aid activities — can be

vulnerable to accusations of intentional or unwitting abuse by terrorist organizations seeking to exploit the inherent

credibility of such officially-recognized bodies. Projects designed to conduct fact-finding research into relevant

current practices within the sector, and to develop and raise awareness of educational best practices materials to

enhance understanding of the challenges that the post-9/11 environment poses for the broad range of charities

(including those who conduct international humanitarian operations in current or former disaster areas, conflict

zones, and failed states, and those that draw their support from non-mainstream Canadian communities) will be

considered for funding.Small and rural – In 2008, projects designed to address the distinct needs of small and rural charities in meeting

their obligations under the Income Tax Act were considered for contribution funding. The CRA is continuing with

this theme in 2009-2010 and will consider funding projects that focus on the development of tools designed to assist

small and rural charities in locating and/or accessing local, regional, and/or provincial information/resources

intended to support charities in meeting their regulatory obligations under the Act.

Funding under this program is limited to $500,000 per project, per year (April 1 to March 31). For 2009-2010

(April 1, 2009, to March 31, 2010), only one-year projects will be considered for funding. Since funding is limited,

it is possible that not all eligible projects will be funded.

Funding submissions must be received by March 27, 2009. Guide RC4411, Charities Partnership and Outreach

Program – Funding Guide and Application, has been prepared for organizations interested in applying for project

funding under the program. It contains the eligibility criteria for funding, information about the application process,

an application form, a glossary of terms, and an application checklist.

For more information, contact the Charities Partnership and Outreach Program, Charities Directorate, Canada

Revenue Agency, 13th Floor, Place de Ville "A", 320 Queen Street, Ottawa ON K1A 0L5, or go towww.cra.gc.ca/charities