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A registered charity is exempt from most taxes, and can issue tax deduction receipts. A nonprofit orrganization has tax-exempt status only.
There is no difference between non-profit, nonprofit and not-for-profit organizations. It is a matter of style only.
A registered Canadian charity must file an annual financial information form T3010, together with its financial statements, with the Canada Revenue Agency. T3010 forms are kept on file for five years.
Canada Revenue Agency holds the financial statements of registered charities in confidence, and does not release them to the public. They may be obtained only from the charitable organization itself. However, the T3010 form filed, annually by a charity, is a public document (unlike the T1044 form for a nonprofit organization).
Canada Revenue Agency now makes the following information publicly available about registered charities:
- a charity's governing documents (i.e., the letters patent, articles of incorporation, trust deed, constitution);
- the application form (completed by a charity when it sought registration or re-registration);
- the notification of registration or re-registration (a letter sent by the Department to notify a charity of its registered status);
- the letter the Department sends to a charity that has been de-registered, explaining the reasons for
- the Department's action; and
- the names of the persons who are or have been directors/trustees of the charity, and the periods during which they served as directors/trustees.
To request public information on charities the number is 1-800-267-2384 for toll free long distance calls.
In 1891, a British court summarized charitable purposes under the following four categories:
Relief of poverty
Advancement of Education
Advancement of Religion
Other purposes beneficial to the community
These categories still form the basis for determination of eligibility for charitable registration. Canada Revenue Agency applies a public benefit test to determine whether an activity is charitable. This test states that:
...those people who are eligible for benefits are either the public as a whole or a significant section of it in that they are not a restricted group or one where members share a private connection, such as social clubs or professional associations with specific membership...
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