The Charities Directorate of the CRA has issued a Notice of Suspension to International Relief Fund for the Afflicted (IRFAN). Prior to this suspension there was only 1 other charity that was suspended. CRA is making greater use of the intermediate sanctions - ie suspensions or penalties rather than revocation. Here is a copy of the CRA press release.
News release The Canada Revenue Agency issues Notice of Suspension to International Relief Fund for the Afflicted and Needy-Canada
Ottawa, Ontario, April 13, 2010… The Canada Revenue Agency (CRA) has issued a Notice of Suspension to the International Relief Fund for the Afflicted and Needy-Canada (IRFAN-Canada), a registered charity under the Income Tax Act (ITA), stating that it has been suspended for one year beginning on April 13, 2010.
The notice stated in part that:
“...it remains our view that IRFAN-Canada has:
•failed to maintain books and records in Canada in accordance with subsection 230(2) of the ITA,
•failed to provide books and records for audit and examination in accordance with subsection 231.1(1) of the ITA, and
•failed to comply with a requirement to provide documents or information in accordance with subsection 231.2(1) of the ITA.”
A charity that has been suspended has no authority to issue donation receipts for income tax purposes for gifts it may receive during its suspension. Also, during the suspension, the charity is deemed not to be a qualified donee, prohibiting other registered charities from making gifts to it during that period.
Registered charities in Canada perform valuable work in our communities, and Canadians support this work in many ways. The CRA regulates charities through the ITA and is committed to ensuring that charities operate in compliance with the law. Where a registered charity is found not to comply with its legal requirements, the CRA may apply monetary penalties, suspend receipting privileges, or revoke the charity’s status under the ITA.
The notice of suspension and other letters relating to a suspension are available to the public on request by calling the CRA’s Charities Directorate at 1-800-267-2384.
More information about registered charities is available at http://www.cra.arc.gc.ca/charities
Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario. To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit http://www.canadiancharitylaw.ca or http://www.globalphilanthropy.ca Mark can be contacted at or at 416-361-1982.
This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.
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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.