Regulating charities and other qualified donees

The Canada Revenue Agency (CRA) is responsible for regulating registered charities and other qualified donees to ensure compliance with the Income Tax Act and its regulations. 

How we regulate

We 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 

Impact on registered charities and other qualified donees

Given that registered charities and other qualified donees have significant tax privileges, we have a responsibility to maintain trust in the charitable sector and the confidence of Canadian donors.

As part of our regulatory activities, registered charities and other qualified donees benefit from:

• Support in applying for and maintaining registered status: We provide ongoing support to registered charities and other qualified donees, from registration to compliance. This includes providing guidance on operating and maintaining registered status.
• Education and outreach: We strive to inform the charitable sector and general public about the latest updates for charities, as well as develop resources such as policy guidance.
• Resources to protect themselves against the risks of terrorist abuse: We contribute to a whole-of-government approach to combat terrorism and terrorist financing. As such, we are responsible for making sure registered charities comply with the requirements of the Income Tax Act and common law, which prohibit providing support for terrorism.
• Advantages of registration: Registered charities and most other qualified donees have privileges:
  • They are exempt from paying income tax, enabling them to allocate more resources toward their charitable activities.
  • They can also issue official donation receipts for gifts they receive, allowing donors to claim tax credits (for individuals) or deductions (for corporations) on their tax returns. To maintain these privileges, registered charities and other qualified donees must continue to meet the requirements of the Act.

If a registered charity or another type of qualified donee is found not to be meeting its legal obligations, we may carry out compliance and audit activities. 

Impact on donors

Registered charities perform valuable work in our communities, and Canadians support this work in many ways. 

As a donor, you should feel confident that your donation will be used effectively. 

You can use our tools to help you donate wisely and contribute to a strong and healthy charitable sector:

• Find a charity and confirm its registered status, activities and financial information
• Find another type of qualified donee and confirm their registered status
• Report donation-related scams and other non-compliance 

Related topics

• Policies and guidance
• Guidance CG-017, General requirements for charitable registration
• Apply to become a registered charity
• Compliance within the charitable sector