Charitable activities

A charitable activity is an activity that furthers a charitable purpose.

How your charity can operate

Under the Income Tax Act, your charity can operate in the following ways:

Carrying on your charity’s own charitable activities through an intermediary

If your charity transfers resources to an intermediary to conduct activities, it must exercise direction and control over the activities. This includes:

• setting clear parameters and making decisions on major issues
• keeping books and records to show this

While day-to-day decisions may be delegated to intermediaries, a charity is ultimately responsible for overseeing how its resources are used.

For more information on working with intermediaries, see:

• Guidance CG-002, Canadian registered charities carrying on activities outside Canada
• Guidance CG-004, Using an intermediary to carry on a charity’s activities within Canada

Making gifts to qualified donees

Your charity can also give resources to qualified donees. Under the Income Tax Act, qualified donees are organizations that can issue official donation receipts for gifts they receive from individuals and corporations.

To verify if an organization is a qualified donee, search the List of charities and other qualified donees.

Making grants to non-qualified donees (grantees)

When your charity makes a grant to a non-qualified donee (grantee), you must:

• ensure the grant is used only for charitable activities that further your charity’s charitable purposes
• keep records to show this (accountability requirements)

The charity is responsible for overseeing the grant, but the grantee carries out the activities.

For more information, see Guidance CG-032, Registered charities making grants to non-qualified donees.

Public policy dialogue and development activities

Charitable activities include public policy dialogue and development activities (PPDDA) that further a charity’s stated charitable purposes. PPDDAs generally involve efforts to influence laws, policies, or decisions of a government in Canada or a foreign country.

There is no limit on the amount of resources your charity can devote to PPDDAs, as long as:

• the PPDDAs further your stated charitable purposes
• your charity does not directly or indirectly support or oppose any political party or candidate for public office

For more information, see Guidance CG-027, Public policy dialogue and development activities.

Other legislation, such as the Canada Elections Act, may also apply when your charity engages in PPDDAs.

Carrying on public policy dialogue and development activities during an election period: election advertising and registering as a third party with Elections Canada

Election advertising is a regulated activity under the Canada Elections Act. It includes any advertisement transmitted during an election period that takes a position on an issue clearly associated with a registered party or candidate. The election period starts on the day the election is called, and ends when the polls close on election day.

If your charity spends $500 or more on election advertising during an election period, you must register your charity as a third party with Elections Canada. As a third party under the Canada Elections Act, your charity is subject to spending limits and reporting requirements.

Under the Income Tax Act, registered charities may carry out election advertising activities that focus on policy issues associated with a political party or candidate, as long as they do not directly or indirectly support or oppose the political party or candidate.

Registered charities will not put their charitable status at risk merely by registering as third parties with Elections Canada.

More information

For questions about PPDDAs, contact the Charities Directorate.

For more information on the requirements of the Canada Elections Act or the third party registration, including information on other regulated activities, see the Political Financing Handbook for Third Parties, Financial Agents and Auditors or call Elections Canada’s Political Entities Support Network at 1-800-486-6563.

Related topics

• Change purposes and activities

Reference

• Engaging in allowable activities (Checklist)