“To give away money is an easy matter and in any man’s power. But to decide to whom to give it and how large and when, and for what purpose and how, is neither in every man’s power nor an easy matter.”
Greek philosopher Aristotle made his comment about philanthropy around 340 BC.
Rob Storoschuk
CPA, CA, LPA, Partner
Millards Chartered Professional Accountants
Rob Storoschuk, CPA, CA, LPA and Partner at Millards Chartered Professional Accountants in Brantford says that the process of deciding where to donate and how to make the biggest difference with your donation can still be a challenge today.
“Canadians are a generous bunch. We donate over $14 billion per year. Of course we all want to know that our donations have been made to a legitimate organization that is spending that money wisely.”
There’s fresh evidence to suggest that Canadians should carefully review and research their charities.
“Reacting on emotion is a human response but we need to be aware that there are unscrupulous people willing to take advantage of that empathy.”
The devastating wildfire in Fort McMurray has resulted in an outpouring of generosity from Canadians but has also been the impetus for fake charities and donation scams.
So how can Canadians vett a charitable organization before giving them financial support?
The Canadian Revenue Agency suggests a number of ways to confirm and review a specific charity.
The CRA recommends that you first contact the charity to request information they have readily available to identify their status.
You can also find out more about any Canadian charity by searching the Charity Quick View listings.
This resource will help you confirm if a Canadian charity is registered and therefore eligible to issue official donation receipts. You can also see a charity’s contact information, general activities, and financial information.
“Obviously you’ll want to make sure the organization is registered but you can also see if their registration has been revoked, annulled, suspended or penalized.”
The Charity Quick View Directory does not list all of Canada’s charities. Other organizations that can issue donation receipts like Registered Canadian amateur athletic associations can be found in this list of qualified donees.
You can seek additional information about a charity by submitting an Informal Information Request. Informal information requests are free and generally answered sooner than a Formal Requests.
Through an Informal Information Request, the CRA can give you:
- a copy of a charity’s governing documents, including its statement of purpose
- a copy of the public portions of a charity’s application for registration and notification of registration, including any conditions or warnings
- the names of a charity’s directors/trustees and when they held the positions
- a copy of the public information from a charity’s annual information return and financial statements
- a copy of letters the CRA has sent to a charity about the reasons for revocation or annulment
- a copy of letters or notices the CRA has sent to a charity about a suspension or an assessment of tax or penalty (other than the amount of
- revocation tax)
- a copy of the information filed to support requests for:
- re-designation as a charitable organization, private foundation, or public foundation
- designation as an associated charity
- permission to accumulate property
The CRA cannot give you:
- information about a charity’s donors
- confirmation that an application for charitable registration has been received or denied
- confidential information about a charity’s officials
- confidential information from a charity’s annual information return
- information relating to a charity’s dealings with the CRA, such as:
- whether the charity is under investigation or audit
- the status of an investigation or audit
- the next steps of an investigation or audit
- how and where the CRA gets its leads
To make an informal information request, call the Charities Directorate at 1-800-267-2384.
“Generally an informal request makes more sense than a formal request. Any formal request is handled by the CRA’s Access to Information and Privacy Directorate, may have processing fees and will probably take longer to process than informal requests.”
A formal request does give you a right of complaint to the offices of the information and privacy commissioners.
To make a formal access to information request, go to How to access information at the CRA.
Rob Storoschuk’s Practice Areas include accounting and taxation for owner-managed businesses, personal and corporate tax planning, estate returns and transitioning from personal businesses to corporations. He also has a special interest in health care professionals, investments, real estate and construction companies.
Resources
How to get information about a charity
http://www.cra-arc.gc.ca/chrts-gvng/lstngs/menu-eng.html
http://www.cra-arc.gc.ca/chrts-gvng/chrts/cntct/nfrmtn-eng.html
Search tips for the Charities Listings
http://www.cra-arc.gc.ca/chrts-gvng/lstngs/srchtps-eng.html
Claiming charitable tax credits
http://www.cra-arc.gc.ca/chrts-gvng/dnrs/svngs/menu-eng.html
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