August 3, 1990
This policy statement outlines the Directorate's policy for the registration of applicant organizations that provide daycare facilities primarily to serve the interests of a particular segment of the community.
The courts have recognized as charitable organizations that provide daycare facilities for the purpose of serving the interests of a particular segment of the community.
1. This policy applies to applicant organizations that provide daycare facilities with formal objects and activities that reflect an intent to relieve poverty and/or advance education, and meets the public benefit test. Footnote 1 It must restrict its programs and activities to the pursuance of its objects and provide specific details about its charitable activities, for example, a synopsis of the criteria used in selecting its beneficiaries. Footnote 2
Relief of poverty
2. An organization can qualify under this category of charitable purposes but only if the recipients are in need of care, Footnote 3 for example, if the children's parents do not have access to another daycare centre in that locality.
Advancement of education
3. Under this category of charitable purposes, an organization must demonstrate that it will have a specified percentage of openings made available to the general public. Its primary trust must be for the benefit of the public as opposed to a private benefit. Footnote 4
4. An organization would fail to qualify for registration as a charity if it restricts its daycare facilities to children of employees only, as opposed to giving just a preference to children of employees.
Other purposes beneficial to the community as a whole
5. An organization may qualify under this charitable category if its daycare facilities are open to the community as a whole, including any interested individual without restrictions of any kind.
6. A purpose would lack sufficient public character if the benefits were confined to members of an association, employees or children of employees of a certain firm or organization, persons of a particular ethnic background or religious affiliation or any other grouping in which all members of the community cannot join or participate.
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