Charities in Canada must operate within the laws of the land, whether those laws are directed specifically at charities, or at the community in general. There are several pieces of provincial legislation specifically directed at regulating aspects of charitable activity, as well as several types of legislation that commonly affect charities, even though it is not directed specifically at charities.
The Income Tax Act is very significant to registered charities because of its charitable registration requirements and the authority it grants to issue tax receipts. Many aspects of the regulation of charities' activities, however, fall to provincial and territorial governments. A primary focus of provincial charitable-sector legislation is fundraising and solicitation activities.
Charities resident or operating in some provinces should be aware of the provincial laws that may affect their activities. In particular, the following legislation, listed by enacting province, should be reviewed and complied with. Where available, links to online resources describing these legislative requirements are provided.
Legislation focused on charities
British Columbia
Charitable Purposes Preservation Act – Provides that discrete purpose charitable donations must be expended in accordance with the purpose for which they were given, and provides for potential creditor protection of property donated for such discrete charitable purposes.
Food Donor Encouragement Act – Charities that distribute donated food in B.C. should review this Act, as it addresses the liability of their directors, agents and employees in respect of the donated food.
Gaming Control Act – Charities that wish to conduct charitable gaming in B.C. (bingos, raffles, etc.) should consult this Act, as it may be necessary to be licensed under this Act.
Trustee Act – Regulates various trust law aspects of charities in British Columbia, including the investment standards to which charities will be held.
Trustee (Church Property) Act – Regulates the ownership of land by unincorporated religious organizations.
Alberta
Charitable Fund-raising Act – Regulates the fundraising activities of charities and fundraising businesses that make solicitations of support from persons in Alberta.
Charitable Donation of Food Act – Charities that distribute donated food in Alberta should review this Act, as it addresses the liability of their directors, agents and employees in respect of the donated food.
Gaming and Liquor Act -- Charities that wish to conduct charitable gaming in Alberta (bingos, raffles, etc.) should consult this Act, as it may be necessary to be licensed under this Act.
Religious Societies’ Land Act – Regulates the ownership of land by unincorporated religious associations.
Trustee Act – Regulates various trust law aspects of charities in Alberta, including the investment standards to which charities will be held.
Saskatchewan
Alcohol and Gaming Regulation Act – Charities that wish to conduct charitable gaming in Saskatchewan (bingos, raffles, etc.) should consult this Act, as it may be necessary to be licensed under this Act.
Charitable Fund-Raising Businesses Act - Regulates for-profit, fund-raising businesses that raise funds on behalf of charitable organizations in Saskatchewan.
Donation of Food Act – Charities that distribute donated food in Saskatchewan should review this Act, as it addresses the liability of their directors, agents and employees in respect of the donated food.
Religious Societies’ Land Act – Regulates the ownership of land by unincorporated religious organizations.
Trustee Act – Regulates various trust law aspects of charities in Saskatchewan, including the investment standards to which charities are held.
Manitoba
Charities Endorsement Act - Regulates charities’ fundraising activities in Manitoba and requires that charities and fundraisers be authorized by the Province before undertaking fundraising activities.
Food Donations Act – Charities that distribute donated food in Manitoba should review this Act, as it addresses the liability of their directors, agents and employees in respect of the donated food.
Gaming Control Act – Charities that wish to conduct charitable gaming in Manitoba (bingos, raffles, etc.) should consult this Act, as it may be necessary to be licensed under this Act.
Religious Societies’ Lands Act – Regulates the ownership of land by unincorporated religious associations.
Trustee Act – Regulates various trust law aspects of charities in Manitoba, including the investment standards to which charities will be held.
Ontario
Charities Accounting Act – Requires charities to register and report annually, and provides for various sanctions and remedies in the event that charities misuse or misappropriate charitable property.
Charitable Gifts Act – This Act was repealed in 2009. (The Act limited charities’ ownership of business interests and required most charities to divest any interest in a business that was greater than 10%.)
Donation of Food Act – Charities that distribute donated food in Ontario should review this Act, as it addresses the liability of their directors, agents and employees in respect of the donated food.
Gaming Control Act – Charities that wish to conduct charitable gaming in Ontario (bingos, raffles, etc.) should consult this Act, as it may be necessary to be licensed under this Act.
Ministry of Community and Social Services Act – Empowers the Minister of Community and Social Services to operate and manage charities in Ontario.
Religious Organizations’ Lands Act - Regulates the ownership of land by unincorporated religious organizations.
Trustee Act – Regulates various trust law aspects of charities in Ontario, including the investment standards to which charities will be held.
Much of the above legislation is administered by the Office of the Public Guardian and Trustee (OPGT). For further information visit their site.
Quebec
An Act respecting Lands of religious congregations – Sets out certain rules regarding the holding of land by religious organizations, and enables unincorporated religious associations to hold land in the name of the congregation through trustees.
An Act respecting lotteries, publicity contests and amusement machines – Charities wishing to conduct charitable gaming should consult the Regie des Alcools, Des Courses et des Jeux, which may require licensing.
Religious Corporations Act – Governs the incorporation of religious congregations, and provides rules for the operation of the corporation.
Prince Edward Island
Charities Act - Requires registration if a charity is soliciting funds within P.E.I., and imposes certain requirements on such charities.
Donation of Food Act – Charities that distribute donated food in P.E.I. should review this Act, as it addresses the liability of their directors, agents and employees in respect of the donated food.
Lottery Schemes Order – Charities that wish to conduct charitable gaming in P.E.I. (bingos, raffles, etc.) should consult the Consumer Services Section of the Office of the Attorney General, which may require licensing.
Trustee Act – regulates various trust law aspects of charities in P.E.I., including the investment standards to which charities will be held.
New Brunswick
Charitable Donations of Food Act – Charities that distribute donated food in New Brunswick should review this Act, as it addresses the liability of their directors, agents and employees in respect of the donated food.
Gaming Regulation – Charities that wish to conduct charitable gaming in New Brunswick (bingos, raffles, etc.) should consult the Department of Public Safety, which may require licensing.
Trustees Act – Regulates various trust law aspects of charities in New Brunswick, including the investment standards to which charities will be held.
Nova Scotia
Gaming Control Act – Charities that wish to conduct charitable gaming in Nova Scotia (bingos, raffles, etc.) should consult this Act, as it may be necessary to be licensed under this Act.
Religious and Charitable Corporations Property Act – Addresses the ability of religious and other charitable corporations to receive and manage property.
Religious Congregations and Societies Act – Regulates various aspects of religious congregations and societies including their ability to be constituted and hold land without formal incorporation.
Trustee Act – Regulates various trust law aspects of charities in Nova Scotia, including the investment standards to which they will be held.
Newfoundland & Labrador
Donation of Food Act – Charities that distribute donated food in Newfoundland & Labrador should review this Act, as it addresses the liability of their directors, agents and employees in respect of the donated food.
Lottery Licensing Regulations – Charities that wish to conduct charitable gaming (bingos, raffles, etc.) in Newfoundland & Labrador should consult the Trade Practices and Licensing Section (TPLS) of the Department of Government Services and Lands, which may require licensing.
Trustee Act – Regulates various trust law aspects of charities in Newfoundland & Labrador, including the investment standards to which charities will be held.
Other common legislation that may affect you
The charitable sector in Canada is very diverse, and it would be impossible to identify all possible types of legislation that a charity should be aware of. Following is a brief overview of some common areas of legislation that many charities should be aware of:
- Taxation. Many charities are affected by federal or provincial taxes of one kind or another. Most common would be the Federal Goods and Services Tax/Harmonized Sales Tax and provincial retail sales taxes. Other types of taxation could arise in specific situations, such as property taxes and land transfer taxes.
- Payroll. Charities with employees will encounter a range of payroll taxes, levies, and filing and reporting requirements, ranging from Canada/Quebec Pension Plan and Employment Insurance contributions, to workers compensation, and various provincial levies.
- Employment/Workplace. In addition to the above tax and payroll-related requirements, charities with employees also need to be well aware of the requirements of the applicable employment standards and workplace safety and human rights legislation.
CRA’s position on other legislation
The Canada Revenue Agency (CRA) administers the application of the Income Tax Act in Canada, and CRA’s Charities Directorate is responsible for the Act as it applies to charities. CRA does not, however, require, monitor, or enforce compliance with other federal or provincial laws. (CRA does require that registered charities keep their legal corporate status (usually under a federal or provincial act of incorporation) in good standing in order to retain their charitable registration, since failing to do so jeopardizes the charity's legal existence.
It is possible to be in breach of other laws without being in breach of CRA’s requirements under the Income Tax Act. However, CRA may consider a charity’s compliance with other laws in the context of enforcing the Income Tax Act, specifically in deciding how to apply the sanctions at its disposal.