As of January 1, 2012, as of result of amendments to the Income Tax Act, low-cost housing corporations for the aged have to apply for registration to be considered a qualified donee. For many low-cost housing corporations being considered a qualified donee is attractive as it provides the ability to issue official donation receipts and more easily receive gifts from registered charities.
CRA has noted on their website:
As of January 1, 2014, the CRA will end the interim measures put in place while the application process was being developed, which allowed the CRA to continue to recognize all low-cost housing corporations for the aged as qualified donees. As of that date, only registered low-cost housing corporations for the aged included on the CRA’s list will have qualified donee status. This means that as of January 1, 2014, only those low-cost housing corporations for the aged that are on the list can issue official donation receipts and receive gifts from registered charities. However, organizations that apply before January 1, 2014, and that can show that they met the requirements to be a low-cost housing corporation for the aged as of January 1, 2012, will be given qualified donee status retroactive to that date.”
For more information on this application process, and criteria needed to apply and deadlines, please visit the CRA website at http://www.cra-arc.gc.ca/chrts-gvng/qlfd-dns/lwcsthsng-eng.html
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.