Faith Today dove into the question of “what if?” a church loses their charitable status in the Jan/Feb issue of the magazine. John Pellowe is chief executive officer of the Canadian Council of Christian Charities, and is interviewed in that story. We asked him to go even deeper on this subject, and share what churches most commonly do wrong, and how they can get it right.
By John Pellowe
It is always an unfortunate and disruptive event when a charity has its registered status revoked by the Canada Revenue Agency (CRA). Fortunately, the situations which result in revocation are virtually always avoidable.
Canada Revenue Agency (CRA) statistics show that in any given year about 500 to 700 charities will have their registered status revoked for “failure to file” their T3010. Most commonly, this is caused when charities don’t file, even when reminded by CRA reminders to do so. Less commonly, revocation is due to an incomplete filing that is not fixed as requested by CRA. A much smaller number of revocations, several hundred in number, happen for other reasons, including failing a CRA audit. Preventing these situations requires a bit of diligence on a charity’s leadership’s part, but staying compliant isn’t hard.
#1 prevention tip
To avoid the main revocation issue, boards should set a standard item on the agenda of a board meeting about four months after fiscal year end to approve the T3010 for submission to CRA. Board approval is not required, but this is one way to ensure that the T3010 is not overlooked. If it isn’t ready, there will still be enough time to complete and submit it. It must be in CRA’s hands by six months after the charity’s year end.
Continue reading How a Canadian church can easily stay in the good books of the CRA