The 2021 Federal budget introduced amendments to registration and revocation rules applicable to charities, in order to limit opportunities for the abuse of charitable registration, as follows:
1) Introduction of a mechanism for the Minister of National Revenue to immediately revoke the registration of a charity upon being listed as a terrorist entity under the Criminal Code, rather than having to follow the current administrative process;
2) Definition of an “ineligible individual” in the context of revoking a charity’s registration, or suspending its ability to issue official donation receipts is amended as follows;
- Is, or is a member of, a listed terrorist entity; or
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In respect of a listed terrorist entity, was, during a period in which the entity supported or engaged in terrorist activities:
- A director, trustee, officer or like official of the entity; or
- An individual that controlled or managed, directly or indirectly, in any manner whatever, the entity.
- A director, trustee, officer or like official of the entity; or
- An individual that controlled or managed, directly or indirectly, in any manner whatever, the entity.
3) Right to suspend, by the Minister of National Revenue, the authority of a registered charity to issue official donation receipts for one year or to revoke its registration where the charity makes a false statement amounting to culpable conduct for the purpose of maintaining its registration. For more information about the amendments to registration and revocation rules applicable to charities, please do not hesitate to contact us.
