RBA Foundation

 

The RBA Foundation, whose mission is to contribute to fostering wellbeing within First Nations communities, will redistribute funds in 2018.

 

Under the terms of the Income Tax Act, a foundation may only make donations to charities registered with the Government of Canada. We recommend that organizations seeking to register as a charity refer to the following guidelines.

 

Note that this document is offered for informational purposes only, and is not official. The content was drawn entirely from the website of  Canada Revenue Agency (CRA).

 

http://www.cra-arc.gc.ca/chrts-gvng/menu-eng.html

 

What's a charity ?

A registered charity refers to a charitable organization or public foundation registered with the Canada Revenue Agency. A registered charity is issued a Registration Number once approved. It is exempt from paying income tax, and can issue tax receipts for donations it receives. It must be established and resident in Canada, operate for charitable purposes, and devote its resources to charitable activities. 

 
https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/charities-giving-glossary.html
 
 

Registered charity vs. non-profit organization ?

 

Registered charities are often referred to as non-profit organizations (NPOs). However, while both types of organizations operate on a non-profit basis, the two types are defined differently under the Income Tax Act.

 

 

Should I apply for registration ? 

 

The decision to register a charity is an important one. Registration as a charity gives an organization special tax privileges. A registered charity does not have to pay income tax and can issue tax receipts to donors. Canadians donate generously every year to charities, and the Government of Canada wants to assure them that only qualifying organizations are registered and are given these privileges.    

When making a decision about whether or not to register as a charity, an organization should be aware of the types of activities that would prevent it from being registered as a charity. For more information, go to Factors that will prevent an organization from being registered as a charity.

After a charity is registered, it will have to meet many obligations each year. A registered charity must also meet several other obligations with different levels of government (federal, provincial, territorial, and municipal), including maintaining its status as a legal entity.

If a registered charity does not meet its obligations, it could face serious consequences such as the loss of its charitable registration.

 

https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/applying-registration/registration-right-you/should-apply-registration.html

 

 

You can refer to the following questionnaire to ensure that the choice for you

 

1. Will your organization be resident in Canada?

 

2. Will your organization have charitable purposes under one or more of these categories?

  • the relief of poverty
  • the advancement of education
  • other purposes that benefit the community in a way the courts have identified as charitable

 

3. Does your organization plan to recruit volunteers or hire employees?

 

4. Will you have the time and commitment to meet the ongoing obligations your organization will have if it is registered as a charity, such as filing an annual return?

 

5. Are you aware of the consequences of not meeting the obligations of registration, such as penalties, suspension, or loss of registration?

 

6. Are you aware of the consequences if your organization is revoked or you decide to end your organization’s operations?

 

http://www.cra-arc.gc.ca/chrts-gvng/chrts/pplyng/rgstrtn/rgstrtnqz-eng.html

 

 

Application review process

 

After we receive your application, we will review it for completeness (for example, all questions are answered, and complete financial statements and governing documents are included). If it is not complete, we will return it to you, identifying what information is required from you before we can process the application. We will then decide if it is a simple application (we have all the information we need to determine if the organization qualifies for charitable registration), or a regular application (we need more information before we can determine if the organization qualifies for charitable registration). We aim to review simple applications within two months, and regular applications within six months. For our service standards, go to canada.ca/charities-giving, select A to Z index, and see Service standards. If we decide that you have submitted a regular application, we will send you an acknowledgement letter. Your application will then be assigned to an officer for review on a first-in, first-out basis.

 

https://www.canada.ca/content/dam/cra-arc/formspubs/pub/t4063/t4063-17e.pdf

 

Applications for funding received by the RBA Foundation are reviewed by members of our Donation Committee. The Foundation will grant donations to registered organizations only. 

 

We recommend that you refer to the Canada Revenue Agency (CRA) for more information.  

 

https://www.canada.ca/en/services/taxes/charities.html