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 – see Incorporating Legislation for details.)
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.
