CRA revokes the registration of The Animals’ Charity as a charity for share donation scheme

According to CRA “The Canada Revenue Agency’s (CRA) audit has revealed that the Organization failed to devote its resources exclusively to its own charitable activities by participating in a promoted donation arrangement in 2008. As a direct result, the Organization issued donation receipts exceeding $9 million for cash and shares purportedly traded on the Frankfurt Stock Exchange. Of the $1 million the Organization received in cash, it paid fundraising fees equivalent to 90% of the cash received to the donation arrangement promoter, Innovative Gifting Inc. It is the view of the CRA that the property for which the tax receipts were issued did not legally qualify as gifts; that the Organization failed to demonstrate that it had actually received the tax-receipted property; and that the Organization failed to report the fair market value of the property purportedly gifted. Additionally, the Organization has operated for the non-charitable purpose of promoting a donation arrangement and for the private benefit of the donation arrangement promoters.”