New Regulatory Regime for Charities Comes Into Force

News Release

Ottawa, Ontario, May 16, 2005 -- John McCallum, Minister of National Revenue, today announced the coming into force of an improved regulatory regime for registered charities. The amendments were introduced as part of Bill C-33, an Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004, that came into force May 13, 2005. "Charities play a vital role in Canadian society and advancing our well-being", said Minister McCallum. Effective regulation by the Canada Revenue Agency (CRA) of registered charities is pivotal to the trust Canadians have in the charitable sector", he added. Key legislative changes include: New alternatives to revoking a charity?s registration for non-compliance ? these intermediate sanctions will provide graduated financial penalties for non-compliance ranging from 5% for receipting deficiencies to a minimum 105% for undue personal benefit. More information about charities that are not complying with the rules because the CRA will be able to publicize that a sanction has been applied to a particular registered charity. A new impartial system for considering and appealing CRA decisions concerning registration as well as on the new sanctions. The regulatory regime is also being improved through a number of service improvements. The CRA will be providing more information to the public about registered charities and will have a modernized monitoring system. The Government of Canada has committed $12 million per year to support the Charities Regulatory Reform Initiative with a goal to increasing public and voluntary sector confidence in the regulation of charities and improving the way in which charities are regulated. Over the past several years, the Government of Canada and the voluntary sector held consultations where it was concluded that it is in the mutual interest of the government and charities to ensure that charities are regulated properly. The CRA remains committed to working with its partners in the charitable sector and the provincial and territorial governments to implement the reform initiative for the benefit of all Canadians. For media information

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2016-12-15

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New Regulatory Regime for Charities Comes Into Force

News Release

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