Report on the Charities Program 2025-2026

Message from the Director General

The 2025–2026 fiscal year was a year of continued progress and transformation for the Charities Directorate. Building on a strong foundation, we delivered high-quality service to the charitable sector while advancing key priorities that support innovation, efficiency, and trust.

Over the past year, we advanced our modernization agenda. These initiatives are helping us streamline processes, enhance our digital services, and strengthen how we engage with charities and stakeholders. This puts us in a better position to respond to the sector’s changing needs and support long-term sustainability.

Our work to promote compliance, provide clear guidance, and support informed decision-making remains central to maintaining public confidence in the sector.

Our results are driven by the dedication and expertise of our employees. Their contributions across the Directorate enable us to deliver consistent, reliable service and to respond effectively to the needs of the sector.

This report highlights our progress and our ongoing commitment to continuous improvement. Looking ahead, we will build on our achievements, further advance modernization, and support a strong and compliant charitable sector for all Canadians.

It is my pleasure to present the Report on the Charities Program 2025–2026.

Sharmila Khare
Director General
Charities Directorate
Canada Revenue Agency

The Charities Directorate at a glance

At the federal level, the Canada Revenue Agency (CRA) administers the rules that govern registered charities and other qualified donees. The Income Tax Act and its regulations support charitable giving while ensuring accountability and public trust in the charitable sector.

Our mission

In the Charities Directorate, we aim to contribute to the integrity of the charitable sector and the social well-being of Canadians by:

• registering charities and other qualified donees
• promoting compliance with income tax legislation and common law through:
  • education to help charities understand their obligations
  • quality service
  • responsible enforcement

For more information: Our role in regulating charities and other qualified donees

Our vision

At the heart of our work, we strive for fairness, knowledge, and innovative service delivery, fostering client-oriented service and compliance. Through these values, we help maintain the recognition and respect of charities, stakeholders, and the Canadian public.

What we do

As the regulator of charities and other qualified donees, the CRA carries out a range of operational activities, including:

• processing applications for registration
• offering guidance on operating a charity to support charities in continuing to meet the Income Tax Act requirements for registration
• conducting audit and other compliance activities
• providing information and resources to the public

Changes to our structure

Over the 2025–2026 fiscal year, the Charities Directorate undertook a broad modernization initiative to improve how we work and deliver services to the charitable sector. As part of this initiative, and in line with our mission and vision, we began reorganizing our internal structure to better align related functions and streamline processes.

As a result of this work, the Charities Directorate now has five new divisions, each of which has an important role in administering the requirements of the Income Tax Act regarding charitable registration. This, in turn, helps make sure the charitable sector is strong, trusted, and accountable.

Highlights for the Charities Directorate in 2025–2026

Key priorities

In the 2025–2026 fiscal year, our work focused on three priorities aimed at improving service delivery, strengthening compliance, and supporting the charitable sector.

Modernization of the Charities Directorate

Advancing these priorities continues to be supported by the ongoing modernization of the charities program and the Charities Directorate.

Through this work, our primary focus has been to enhance the quality, accessibility, and efficiency of our services to better meet the needs of charities, stakeholders, and the public. At the same time, these changes will enable us to find smarter and more sustainable ways to operate, consistent with the Government of Canada’s fiscal priorities.

In the 2025–2026 fiscal year, we introduced these changes in a phased way to support lasting improvements without disrupting service. Together, they support a more flexible and risk-informed approach, guided by four key goals.

• Quicker decisions on registration
• Enhanced compliance actions
• Better use of resources
• Responding to program reviews

Over time, these efforts will help support continued improvements in voluntary compliance, service delivery, and Canadians' trust in the charitable sector. 

Progress made in 2025–2026

This report highlights the CRA’s activities and accomplishments during the 2025–2026 fiscal year. Most notably, the CRA:

• began updating Guidance CG-019, Charitable purposes of a registered charity, as well as developing:     
  • an accompanying short guide that condenses the key elements 
  • 240 model charitable purposes to assist the sector in writing purposes for their governing documents
• provided regulatory updates and education at key engagements to strengthen relationships with stakeholders in the charitable sector and gain valuable insights
• initiated program implementation for legislative changes proposed in Budget 2024 related to e-correspondence, official donation receipting, foreign charity reporting, and publication of Notices of intention to revoke
• conducted preliminary planning for the implementation of a new data collection process for non-profit organizations (NPO) announced in the 2024 Fall Economic Statement
• launched the enhanced Equity, diversity, and inclusion training suite for Charities Directorate employees, incorporating charities-specific examples to help employees recognize and address potential bias in their work
• modernized the T3010 filing process by delivering an online service that allows charities to upload CRA-certified, third-party software-generated returns through their CRA accounts
• supported external reviews of its program for protecting charities from terrorism abuse

The charitable sector by the numbers^{Footnote 1} 

Registered charities by designation

The number of registered charities by designation comes from the Charities Directorate’s administrative data for 2025.

Assets, revenue, and expenditures by designation (in billion dollars)^{Footnote 2} 

Revenue by type (in billion dollars)^{Footnote 3} 

In 2024, the government continued to be the main source of revenue for charities, making up 65% of all revenue. Revenue from the sale of goods and services (8%), tax-receipted gifts (6%), non-tax-receipted revenue (3%), and revenue from other registered charities (3%) also contributed to charity revenue in 2024. Finally, the combined amounts in the “other” category made up 15% of charity revenue.

 Expenditures by type (in billion dollars)^{Footnote 5} 

In 2024, 75% of expenditures reported by charities were allocated to charitable activities, 4% on gifts to qualified donees, and 21% on “other” expenditures, such as professional and consulting fees, management and administration, and travel and vehicle expenses.

Activities outside Canada (in billion dollars)^{Footnote 6} 

Charities reported spending approximately $5.1 billion on activities outside Canada (as per line 200 of Form T3010).

The regulatory process

To become a registered charity, an organization must apply to the CRA and show that it is both constituted and operated exclusively for charitable purposes. If approved, the organization is registered and receives significant privileges under the Income Tax Act, including tax-exempt status and the ability to issue official donation receipts.

Once registered, charities must continue to meet all the general requirements for charitable registration to maintain these privileges and keep their charitable status.

For more information: Advantages and obligations of becoming a registered charity

The CRA monitors compliance through reviews and audits, and may work with charities to correct issues where possible.

If a charity does not follow the rules, the CRA may take compliance action under the Income Tax Act. This can range from education letters and compliance agreements to financial penalties or, in serious cases, revoking the charity’s registered status. When a charity is revoked, it loses its tax privileges and generally must transfer its remaining assets to other eligible charities or pay a revocation tax.

Charities that disagree with a decision the CRA makes following an audit have access to recourse mechanisms.

Registration

During the 2025–2026 fiscal year, we not only offered ongoing support to applicants and their representatives throughout the registration process, but also actively encouraged using our online services. As a result, 84% of applicants used our online platforms to submit initial applications, documents, and correspondence. By promoting online services, we aim to enhance efficiency and streamline the application process for all users.

Over the course of the fiscal year, we received 3,077 applications for registration as a charity, representing a 13% increase over the last period. We also received 69 applications for registration in the other qualified donee (OQD) categories. We made 2,595 decisions on applications for registration.

Over the past year, we continued to focus on refining our processes to enhance efficiency and deliver better outcomes for our clients. By streamlining the management of applications and upgrading internal systems, we ensured more consistent and predictable results for applicants. These improvements are part of an ongoing effort to provide clarity and confidence in the outcomes of applications.

Additionally, we reinforced our commitment to supporting clients through educational initiatives. These efforts emphasized the importance of understanding post-registration responsibilities, equipping charities with the knowledge to navigate their obligations effectively within the regulatory framework. This proactive approach is an investment in building a more informed and capable charitable sector, setting the foundation for sustained success in the future.

Applications received – 2025–2026 fiscal year

Applications closed - complete versus incomplete upon submission – 2025–2026 fiscal year

Incoming applications are often found to be incomplete for the following reasons:

• missing or incomplete governing documents
• full responses not provided on a paper submission, including missing or incorrect signatures 
• missing or incomplete description of activities
• missing T3010 returns (for applicants that lost their status due to failure to file)

Application outcomes – 2025–2026 fiscal year

Approval of registration continued to be the most common application outcome, with approximately 79% of applications for charitable registration approved. Some applications did not proceed to a final decision, as applicants often chose to withdraw or abandon their application during the process after determining they were unlikely to meet registration requirements (representing a combined 12% of total outcomes).

Approval of registration was also the most common application outcome for other qualified donees in the 2025–2026 fiscal year. 

Common reasons for denial – charities – 2025–2026 fiscal year

In fiscal year 2025–2026, a total of 19 applications were found to be ineligible for charitable registration. The primary reasons for denying charitable registration included:

• Carrying on non-charitable activities
• Lack of information provided on proposed activities
• Failing to provide a public benefit
• Lack of direction and control over the use of resources

Completed registrations by category – 2025–2026 fiscal year

Promoting compliance

We rely on many stakeholders, including charities, umbrella organizations, accountants, lawyers, media, donors, and the general public, to help support compliance within the charitable sector. Ensuring compliance is truly a shared responsibility.

In the 2025-2026 fiscal year, we continued to use a risk-based approach to promote and address compliance within the charitable sector.

Our top three high-risk non-compliance areas of focus were aggressive tax planning, offshore activities, and ineligible individuals.

Compliance activities by type – 2025–2026 fiscal year

When we find non-compliance issues, we use a series of progressive compliance measures to address them.

Non-audit interventions are aimed at promoting voluntary compliance outside of the audit process. They include education letters, telephone calls, and requests for information.

In the 2025–2026 fiscal year, we carried out 5,091 non-audit interventions.

During that same time, 227 audits were completed. 

Common non-compliance findings

We identified common non-compliance issues in the following areas:

• Books and records
• Official donation receipts
• Form T3010, Registered Charity Information Return

For examples of minor errors and high-risk non-compliance activities: Top compliance issues for charities 

Audit outcomes for the 2025–2026 fiscal year

Our risk-based audit program was successful at identifying non-compliance. During the 2025–2026 fiscal year, 98% of completed audits found non-compliance, with 64% of audits revealing serious non-compliance. 

Compliance revocations – 2025–2026 fiscal year^{Footnote 11} 

Revocation is when a charity or OQD's registration is cancelled and the privileges that come with registration are taken away. The most common reason for revocation is for failure to file an annual information return as required under the Income Tax Act. This applies to registered charities and certain OQDs. These are also known as delinquent revocations.

For more information: Types of revocation

Revocation tax assessments – 2025–2026 fiscal year

When a charity loses its registration, it doesn't simply close its doors—it becomes subject to the revocation tax. This tax is equal to the full fair market value of all remaining assets after the charity has paid its debts.

After a charity is revoked, we determine if it has met its revocation tax obligations.

If the charity does not file the required Form T2046 Tax Return Where Registration of a Charity is Revoked and still has remaining assets, we may estimate the amount owing and issue an assessment based on that information (called an arbitrary assessment).

Finally, we check whether any remaining assets were properly transferred to eligible organizations, as required by law. If we find that assets were not handled correctly, we may refer the case for further compliance action.

For more information: Revocation tax and the T2046 tax return

In the 2025–2026 fiscal year, we completed the following revocation tax-related actions:

Program policy

Our guidance and policies explain the requirements of the Income Tax Act, as well as the common law that applies to registered charities and other qualified donees. We set our policy priorities based on factors such as legislative changes, government priorities, and developments within the charitable sector. We also continue to identify policy questions that arise from the operation of the charities program. We address these concerns by developing guidance products and providing advice across the charitable sector. 

Collaboration and engagement

As the federal regulator of registered charities and other qualified donees, we understand that ongoing, meaningful engagement with the charitable sector is essential to carrying out our mandate.

By connecting with organizations in a proactive way, we can build relationships, share information, and support a well-informed, compliant sector.

Throughout the 2025–2026 fiscal year, we continued to connect with stakeholders across the charitable sector through speaking engagements, conference participation, collaborative roundtable discussions, and other events. For a detailed overview of these engagements, consult past editions of the Quarterly updates from the Charities Directorate.

Serving the sector and Canadians

We are committed to delivering high-quality service to the charitable sector and the public by prioritizing education and providing accessible, client-focused support. Our services include a direct contact centre, written enquiries, information requests, webinars for charities, and various outreach opportunities.

Enquiries received

In the 2025–2026 fiscal year, we received 12,476 written enquiries – 5,848 were submitted through the My Business Account (MyBA) portal. Requests continued to focus primarily on account maintenance matters such as changes to directors, addresses, representatives, and contact information. The most common complex enquiries include mergers and amalgamations, changes in legal status or designation, and requests for guidance on receipting.

Our client service representatives also provided support by telephone, responding to both routine and complex enquiries. The most common telephone enquiries were related to filing an annual information return (such as Form T3010), applying for registration, making changes to a charity account, and receipting. Client service representatives also helped organizations by answering questions about online services, including MyBA.

Enquiries received – 2025–2026 fiscal year

Service standards

As part of its ongoing commitment to quality client service, the CRA has service standards that Canadians can reasonably expect under normal circumstances. The Charities Directorate has set standards for both written enquiries and telephone enquiries, as well as responding to applications.

Written service standard

The CRA aims to meet this standard 80% of the time.

Result

Telephone service standard

The CRA aims to meet this standard 80% of the time.

Result

Telephone accessibility

Result

Transparency and access to public information

Providing timely and reliable access to charity information remains a key part of our commitment to transparency.

In addition to providing the public information submitted by registered charities on its Form T3010, Registered Charity Information Return on the List of charities and certain other qualified donees, we respond to informal requests for more specific documents and data. These include requests for financial statements and specific lines or sections of the information return, as well as customized list of charities by geographic location, designation, or category code.

For more information: How to get information about a charity

Information requests processed

For the 2025–2026 fiscal year, we processed a total of 2,176 requests for information, including:

• 2,014 requests for documents or data from the public
• 162 from reporters, coordinated through the Media Relations Section in the Public Affairs Branch

These figures reflect the number of requests processed rather than the volume of documents provided (for example, one request could represent five documents).

The most frequently requested materials include Form T3010, Registered Charity Information Return and financial statements for registered charities, as well as governing documents and application forms.

Expanded charity data now available on the Open Government Data Portal

As of February 2026, the Open Government Data Portal now offers historical T3010 public charity data from 1990 through 2024. This expanded range provides researchers, policymakers, journalists, and the public with over three decades of insights into Canada's charitable sector and further strengthens transparency and accessibility of charitable sector data across the country.

To access the records, go to the Open Government Portal and search using the keyword "T3010".

Outreach and education

Charities webinars

We regularly offer webinars to educate charities and other qualified donees on topics that will help them meet their obligations and enhance their day-to-day operations.

In the 2025–2026 fiscal year, we held a total of eighteen sessions, in both English and French, on the following topics:

• Completing your T3010 online
• Disbursement quota
• Accessing CRA online services

A video recording of each webinar can be found in the Charities media gallery.

Communicating with the charitable sector

Proactive communication with external stakeholders is an important part of our work.

During the 2025–2026 fiscal year, we continued to use our newsletter, also known as the Electronic Mailing List (EML), to raise awareness of the regulatory obligations of the charitable sector under the Income Tax Act. Over the period, we sent 18 EMLs to subscribers.

We also continued our Quarterly updates from the Charities Directorate, with feature topics focusing on our modernization initiative, what charities can do to set the stage for a successful year ahead, and our role in regulating charities.

To see an interactive list of EMLs sent out over the 2025–2026 fiscal year and beyond, visit News and events for charities.

Subscribe to our electronic mailing list

External reviews

International and domestic commitments

The CRA’s program for protecting charities from terrorism abuse contributes to Canada’s compliance with international standards for combatting terrorist financing, such as those set by the Financial Action Task Force (FATF). Over the period, the CRA contributed to a mutual evaluation review conducted by the FATF to assess Canada’s compliance with its recommendations.

National Security Intelligence Review Agency review

On October 2, 2025, the National Security and Intelligence Review Agency (NSIRA) released their review of the CRA’s program for protecting charities from terrorist abuse.

The review focused on the Charities Directorate’s audit workload, and assessed the program’s national security activities and decision-making for reasonableness, necessity, and compliance with the law.

We acknowledge the important role that review bodies play in the national security and intelligence communities.

We also recognize the value of continually improving our processes and procedures to reinforce consistency and impartiality in decision-making and to ensure the high quality of the charities audit program. We are committed to implementing enhancements to strengthen these processes and welcomed the review.

For more information: CRA response to the National Security and Intelligence Review Agency’s (NSIRA) report

Office of the Taxpayers' Ombudsperson review

We have met the deliverables established following the release of the Office of the Taxpayer’s Ombudsperson report, Charity Begins with Fairness: More to Explore (published March 27, 2023). We plan to continue offering annual refresher training moving forward.

In the 2025–2026 fiscal year, we launched the enhanced Equity, diversity, and inclusion training suite, which includes charities-specific examples to help employees recognize and address potential bias in their work, training opportunities, resources, and self-reflection activities.  

The CRA remains committed to ensuring that its employees are well positioned to serve all Canadians with empathy and respect.

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