Applications for registration - Promotion of culture or advancement of education

Reference Number
CES - 003

Date
June 20, 1997

Introduction

I would like to thank Mr. Michaud for inviting me to meet you here today.

The Charities Division is a special division in the Department of National Revenue because its function is not to collect taxes. Its function is to register certain organizations as charities and to maintain public confidence in these organizations by eliminating abuse and encouraging transparency in this sector of activity.

The Division's role is to determine whether an applicant qualifies for registered charity status by closely examining the applicant's objectives, activities and programs and ensuring that all questions and situations are explored when each application is reviewed.

The courts and charities

1. The courts recognize certain organizations as being charities insofar as they are:

a.educational, or

b. they provide certain specific services to certain segments of the population, such as:

i. community centres for the whole community in a region,

ii. health-care services, and

iii. seniors' residences.

2. The courts refuse, however, to grant charity status to advocacy groups, such as

a.unions, owners' groups,

b. organizations that conduct joint action and lobbying, and

c. organizations formed for social activities (sporting activities, social meetings, etc.).

What is meant by "charitable purposes"

3. You should understand the rules of the Income Tax Act concerning the promotion of:

a.the French language, and

b. the interests of French-Canadians, and other languages or cultures.

4. I would like to provide general information on this issue.

5. Under the Act, the Department is authorized to register organizations as charities provided that they carry out activities in accordance with the definition of a charity established by "Common Law."

6. The courts have divided charitable purposes into four broad categories. In order to be considered charitable, and registered as such, an organization must be created exclusively for charitable purposes, such as:

a.the relief of poverty,

b. the advancement of education,

c. the advancement of religion, and

d. other charitable purposes benefiting the entire community.

7. Furthermore, the organization's objectives must not be described in such a broad and ambiguous manner that they allow the organization to involve itself in non-charitable activities.

Public benefit

8. A charitable purpose must have certain essential characteristics. The most important is the criteria of public benefit. Case law maintains that the intention to favour the community, as opposed to specific interests, was one of the reasons for being of charities.

9. Allow me to elaborate on the public benefit aspect.

10. The benefits should not be restricted to members of one organization, people belonging to a specific ethnic group, a language and cultural community in particular, a religious affiliation, or any group that not all the members of the community can join or participate in.

11. The term "community" means the general community, not a part of the community defined by a specific criterion. For example, an organization that limits its activities to a segment of the population, or even to certain citizens, could not meet this requirement.

12. In other words, in order to meet the criterion of public benefit, the question is not whether there is a large enough group of people wanting to benefit from the organization's services, but rather whether a person without some personal characteristic (gender, race, religion, nationality, professional association) would be refused this organization's services. That is to say, the services must be open to all, without distinction.

Cultural promotion

13. An organization created to promote French culture does not meet the criterion of public benefit under the fourth category.

14. Although it is a very commendable objective that could interest a number of people in the community who identify with this culture, the courts have not recognized maintaining or developing a cultural heritage or a specific language as a charitable purpose. A rejected application for registration would generally be based on objectives that are too broad or vast to fall under charity, such as promoting the French language or the interests of French-Canadians.

15. I would like to add that a decision to register or not to register an organization is not based on whether the organization's objectives are morally or socially justified, recommended or even necessary. We simply must ensure that the benefits associated with registering are enjoyed only by organizations that operate within the parameters of the Income Tax Act. The Department's position conforms to current law. It does not imply any judgment by the Department with respect to the merits of an organization's activities.

Promotion of culture or advancement of education

16. Promotion of culture was not recognized in law as charitable. However, activities whose objective is to educate the public on various aspects of a culture could be acceptable. From this point of view, we consider the following activities to be charitable:

a.helping immigrants adapt to the Canadian culture by providing educational services, such as literacy, and professional and family counselling,

b. training courses, and

c. art and history appreciation courses.

17. Providing advice in the language of a minority could be a way to relieve poverty when the advice aims to help those in need of assistance because they are poor.

18. For example, this could be classified as a health-care promotional activity if medical information is provided.

19. Assistance immigrants receive to enable them to understand Canadian society, including the French culture here, and to ease their feelings of distress could be considered a charitable purpose.

20. As you know, French culture is one of our country's original cultures and certain minority rights are recognized in our constitution, such as the right to education in the minority language.

21. French-speaking people played an important role in developing the country and therefore have a special position in Canada. French is recognized federally as one of Canada's two official languages.

22. Recognition of the French language and the special position of French-speaking people historically and politically does not, however, seem to give them special status today as special beneficiaries of charities or in terms of the promotion of French culture as a charitable purpose, regardless of how desirable and profitable it may be for our country.

23. How then can we justify supporting the registration of groups promoting French culture?

a.If the political recognition of French-speaking people in Canada resulted in this status, the same status would then be given to English-speaking people.

b. If French-speaking people were given special treatment because of their minority status, a number of other minorities in our countries could claim to have a valid cultural heritage that is threatened.

Conclusion

24. We generally reject applications submitted by organizations whose objectives involve preserving culture and heritage.

25. Of course, some of the activities carried out by cultural organizations may be charitable within the context of the advancement of education.

26. Insofar as an applicant is seeking to promote culture in a non-educational way, to encourage social interaction or exert political pressure, we must conclude that it is not eligible for registration.

27. In short, an organization may not qualify when its activities and goals are limited to a specific group, such as, a French-speaking and Acadian community, and it therefore does not provide a tangible benefit to the general public or the entire community.