The Commissioner of Charities: A Comprehensive Guide to Canada's Charity Regulator

Introduction

The Commissioner of Charities (COC) is an independent agency of the Government of Canada responsible for regulating charities and other qualified donees in Canada. The COC plays a crucial role in ensuring that charities operate in a fair, transparent, and accountable manner. This article provides a comprehensive guide to the Commissioner of Charities, including its history, mandate, powers, and resources available to charities.

History of the Commissioner of Charities

The COC was established in 1967 under the Income Tax Act as the Director of Charities. In 2012, the role was renamed to the Commissioner of Charities, reflecting its enhanced powers and responsibilities.

Mandate and Responsibilities

The COC's primary mandate is to:

• Register and regulate charities and other qualified donees
• Promote compliance with the Income Tax Act and other relevant legislation
• Provide guidance and support to charities
• Investigate complaints about charities

The COC also has a number of specific responsibilities, including:

• Reviewing and approving charitable registration applications
• Issuing charitable status letters
• Conducting compliance audits
• Revoking charitable status in cases of non-compliance
• Investigating and taking enforcement action against charities that violate the law

Powers of the Commissioner of Charities

The COC has a wide range of powers to fulfill its mandate, including:

• The power to access information and documents from charities
• The power to conduct investigations
• The power to issue compliance orders
• The power to impose administrative penalties
• The power to refer cases to the Public Prosecution Service of Canada

Resources Available to Charities

The COC provides a number of resources to help charities understand and comply with their obligations, including:

• A toll-free helpline
• A website with extensive information and resources
• Educational workshops and webinars
• Publications and guidance documents

Tips and Tricks for Charities

Here are a few tips and tricks for charities to help them navigate the regulatory landscape:

• Register early. The sooner you register your charity with the COC, the sooner you can start receiving tax benefits and issuing tax receipts.
• Keep accurate records. The COC may request access to your financial records and other documents as part of a compliance audit.
• Stay up-to-date on the law. The COC regularly updates its guidance documents and resources to reflect changes in the law.
• Don't be afraid to ask for help. The COC staff is available to answer questions and provide guidance to charities.

Common Mistakes to Avoid

Here are a few common mistakes that charities should avoid:

• Failing to register with the COC. Operating an unregistered charity is illegal and could result in significant penalties.
• Issuing tax receipts without authorization. Only registered charities can issue tax receipts for donations.
• Spending charitable funds on non-charitable purposes. Charities must use their funds to further their charitable objectives.
• Engaging in political activities. Charities are prohibited from engaging in partisan political activities.

How to Apply for Charitable Registration

To apply for charitable registration, you must submit an application to the COC. The application process can be complex, but the COC provides a number of resources to help charities complete the process.

Step 1: Determine if you are eligible. To be eligible for charitable registration, your organization must meet the following criteria:

• It must be a legal entity (e.g., a corporation, trust, or unincorporated association)
• It must have a charitable purpose
• It must be operated for public benefit

Step 2: Gather your supporting documents. You will need to provide the COC with a number of supporting documents, including:

• Your organization's constitution or bylaws
• A list of your directors or officers
• A financial statement
• A description of your charitable activities

Step 3: Submit your application. You can submit your application online or by mail. The COC will review your application and make a decision within 120 days.

Frequently Asked Questions

1. What is the difference between a charity and a non-profit organization?

A charity is a non-profit organization that has been registered with the COC. Charities can issue tax receipts for donations, while non-profit organizations cannot.

2. How much does it cost to register a charity?

There is no fee to register a charity. However, you may have to pay for legal fees and other expenses incurred during the registration process.

3. How long does it take to register a charity?

The COC aims to process applications within 120 days. However, the process may take longer if your application is complex or if the COC requires additional information.

4. What are the benefits of being a registered charity?

Registered charities receive a number of benefits, including:

• Tax exemption on their income
• The ability to issue tax receipts for donations
• Access to government funding programs

5. What are the risks of operating an unregistered charity?

Operating an unregistered charity is illegal and could result in significant penalties, including fines and imprisonment.

6. Where can I get more information about the Commissioner of Charities?

You can visit the COC's website at www.canada.ca/charities or call the COC's toll-free helpline at 1-800-267-2384.

Conclusion

The Commissioner of Charities plays a vital role in ensuring that charities operate in a fair, transparent, and accountable manner. By understanding the COC's mandate, powers, and resources, charities can better comply with their obligations and achieve their charitable objectives.