The Charities Directorate has announced that it will no longer pre-approve changes to registered charities’ purposes or activities. This means charities are now responsible for filing changes to their charitable objects if they wish to adopt a new purpose or begin a new activity. Charities must also ensure their activities align with their updated purposes.
Charities that are changing their purposes are required to send their formally adopted, updated governing documents to the CRA. If a charity starts new activities in support of new or existing purposes, sending an updated statement of activities to the CRA is also encouraged. The CRA may follow up to address concerns or request additional information.
CRA client service representatives may be able to help with general questions. This change is one of the recent updates from the CRA to streamline its practices.
While charities now have more flexibility to make changes without pre-approval, there is also greater responsibility. If the CRA audits a charity and finds that its purposes are not charitable or that its activities do not align with those purposes, there may be compliance risks. To support charities in the absence of pre-approvals, the CRA has indicated that a new suite of resources is forthcoming. Once these resources are available, CCCC will be sure to review the refreshed guidance on charitable purposes, model purposes, and the guide on understanding and drafting charitable purposes and let you know of any key changes.
If you have questions or would like support, please contact our Member Support Team by phone or email.
The content provided in this blog is for general information purposes and does not constitute legal or professional advice. Every organization’s circumstances are unique. Before acting on the basis of information contained in this blog, readers should consult with a qualified lawyer for advice specific to their situation.