Advantages of registration

The main advantages of being a registered charity are:

  • Registration allows a charity to issue official donation receipts for gifts it receives. These receipts can be used to reduce the income tax payable of an individual donor or the taxable income of a corporate donor.

  • Once registered, a charity is exempt from paying income tax under Part I of the Income Tax Act.

  • Registered charities are eligible to receive gifts from other registered charities, such as foundations.

  • Registration provides increased credibility in the community, since registered charities must follow certain rules and guidelines in order to maintain their registration.

  • Many goods and services provided by registered charities are exempt from goods and services tax/harmonized sales tax (GST/HST). Also, in many situations, registered charities can claim a partial rebate for the GST/HST they pay.

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