Business activity

Summary policy

Date
October 25, 2002

Reference number
CSP-R05

Key words

Related business

Policy statement

Under the Income Tax Act, charitable organizations and public foundations can carry on related businesses that accomplish or promote their charitable objects. A related business is a commercial activity (that is, revenue-generating) that is either related to a charity's purposes, or substantially run by volunteers.

References

• Policy statement CPS-019, What is a related business?
• Policy commentary CPC-002, Related business and public foundations
• Alberta Institute on Mental Retardation v. M.N.R., [1987] F.C. 286
• Earth Fund v. Canada (Minister of National Revenue) (2002 FCA 498), 2002-12-16
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 149.1(1)