The Canada Revenue Agency (CRA) (formerly Revenue Canada) is the government department responsible for granting organizations charitable tax status. The process routinely takes 6 months to 18 months and requires applicants to fulfill a number of requirements. One of the major advantages of obtaining charitable status, is that the organization is able to issue receipts to donors for income tax purposes. This can be a major advantage when soliciting for donations. In addition, charities receive certain tax exemptions. If an organization is created in Canada, is non-profit and is charitable in purpose, it may qualify as a charity within the meaning of the Income Tax Act. A non-profit corporation cannot issue tax deductible receipt simply because it is a non-profit corporation. It must first submit an application and be accepted as having charitable status.
Our Service will complete the relevant form to apply for charitable tax status with the CRA. If you are incorporating a non-profit at the same time make sure that both orders are in your shopping cart so that we may process them simultaneously.
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