Posted under News | What's New from the Charities Directorate of CRA | Canadian Charity Law | Planned Giving and Canadian Charities | Ethics and Canadian Charities
The CRA has just released its new process for recognizing “municipal or public bodies performing a function of government in Canada”. Here is a PDF OF THE ARTICLE This will be of particular interest to Aboriginal bands, school boards and others who may wish to obtain this recognition as it makes them a qualified donee and therefore able to issue official donation receipts and also more easily receive funds from other Canadian charities. We hope that this new process will facilitate philanthropy in the Aboriginal space. There are probably over a thousand organizations that could one day be listed on the CRA website, which will make donations to them far simpler and easier. It is important to note that as of January 1, 2014 for a group to be recognized under the category “municipal or public bodies performing a function of government in Canada” it cannot self-assess but must be on the list. Some organizations will want to proceed quickly with the process as CRA has not set out a service standard yet and therefore it is difficult to know how long the process will take. It is also interesting to note that “...organizations that apply before January 1, 2014, and that can show that they met the requirements to be a municipal or public body performing a function of government in Canada as of January 1, 2012, will be given qualified donee status retroactive to that date.” Although a lawyer is not required to send the letter to CRA some organizations may wish to retain legal counsel to assist with this and other matters such as appropriate issuance of receipts and required books and records.