Registered charities (other than private foundations) are allowed to carry on business activities, which can be an important source of revenue. These activities are subject to certain limitations, however, and must adhere to Canada Revenue Agency (CRA) requirements.
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- a decision-tree to see if an activity is a related business
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- covering costs or creating profits?
- charitable objectives or competing in marketplace?
- expanding access or competing with other businesses?
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- penalties for carrying on an unrelated business
- putting an unrelated business in an "intermediary entity"
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- use of donated supplies or labour?
- for supporters or purchasers?
- events or continuous operations?
- unique or recurring activities (carrying on a business)?
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- not business activities
- not carrying on a business
- related businesses
- unrelated businesses
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- investments or operating assets?
- income from ownership or from trading?
- passive or active income?
- how is income from assets earned?
- partnership interests?
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