Report #3 of the Advisory Committee on the Charitable Sector
Advisory Committee on the Charitable Sector
August 17, 2021
Description / Summary
The Advisory Committee on the Charitable Sector (the ACCS) began its work in late 2019 as a permanent consultative forum for promoting meaningful dialogue between the charitable sector and the Government of Canada, in particular the Canada Revenue Agency (the CRA) and the Department of Finance Canada. The objectives of the ACCS are to advance emerging issues relating to charities, and to ensure that the regulatory environment supports the important work that charities do. The Committee provides the Minister of National Revenue and the Commissioner of the CRA with recommendations for administering and interpreting the Income Tax Act (ITA) and the common law for registered charities and other qualified donees. The Committee may also make recommendations for legislation relating to registered charities and other qualified donees in the ITA.
At its meetings on April 28 and May 31, 2021, the ACCS reviewed and agreed to move forward with its third report. This report of the ACCS focuses on two main areas and includes recommendations for action in each area. The first area encompasses aspects of the relationship between the Charities Directorate of the CRA and charities particularly those serving vulnerable populations. These include communication and education, the language of CRA guidance documents, accessibility and consistency of information provided by the CRA, and interactions of various kinds with these charities. The second area of focus is the ability of charities to earn income from activities, some of which might come from related or unrelated business activities.