What are the benefits of being a Charity

by Kim Throndson

July 21, 2025

Not all non profits are registered charities with CRA.  (see my blog post - IS MY NON PROFIT A CHARITY) If your board is thinking of applying for charitable status, or are unsure what the benefits are to having charitable status, then read on.

TAX RECEIPTS

REVENUE

LESS TAX

MORE HELP

1.       Donations and tax receipts

-            Registered Charities can issue donors tax receipts for their donations.  A tax receipt encourages more donations by providing a benefit to the donor.

2.       Increase  revenue stream

-            Increased revenue stream.  Some grant providers will only  issue money to registered charities.  Also some companies will only provide sponsorships to registered charities

3.         Less tax paid

-            If there is surplus in a year, then a registered charity may not pay tax on it

-            GST rebate – registered charities are eligible for a public services rebate of 50% of GST paid on expenses

4.       Increase help to operate

-            Registered charities can use volunteers to promote their charitable purpose, and assist the organization.

So although applying for and maintaining charity registration is more work and expense, there are more benefits as well.